Pentagon leaders plan to meet with defense industry executives to discuss ways to address supply chain issues amid an expected increase in demand for weapons from U.S. allies due to the war in Ukraine.
Deputy Defense Secretary Kathleen H. Hicks will hold a secret meeting with top U.S. defense contractors to discuss National Defense Strategy, supply chain security and strengthening the military-industrial base, including workforce issues, Reuters reported, citing sources.
There is growing concern among Pentagon officials that top U.S. defense equipment suppliers will face a surge in weapons orders from European countries such as Germany and Poland.
Previous meetings between Pentagon officials and leading weapons manufacturers, including Lockheed Martin Corp, Raytheon Technologies Corp and General Dynamics Corp, have focused on Ukraine and hypersonic weapons development.
Despite global interest in weapons, major U.S. weapons manufacturers continue to cite a limited labor market and ongoing supply chain problems due to the coronavirus pandemic to lower expectations about how quickly they can fulfill these anticipated orders.
Pandemic supply chain problems continue to plague defense contractors because components and materials are not delivered on time, delaying production and, ultimately, payment.
The Pentagon plans to devote $500 million to training and retention programs in the coming years, as well as more than $2 billion to invest in the supply chain as part of an effort to address the problems.
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