The war in Ukraine and rising tensions over Taiwan have caused a surge in demand for U.S.-made high-tech weapons. And with the ongoing supply chain crisis and rising inflation, military industry observers are wondering whether the U.S. defense sector can keep up with demand, CNBC reported.

Even with the largest defense budget in the world, the U.S. military is not immune to supply chain problems. But with an already huge budget and questions about Pentagon spending, some critics believe additional funds may not help.

Identifying gaps and moving forward with programs that are already in place, while scrapping those that aren't working, could be one way to address the problems that have plagued previous big-budget initiatives at the Pentagon.