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Is the Industrial Base on a Wartime Footing? A Progress Report : Center for Strategic and International Studies (CSIS) , July 6 , 2026

July 6, 2026

Center for Strategic and International Studies (CSIS)

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From the report: “The Pentagon first outlined the goal of putting the United States industrial base on a “wartime footing”— the condition of being prepared to deter and, if necessary, prevail in a protracted conflict—in November 2025. What steps have government and industry taken since then to make this ambition a reality?

By initiating and incentivizing large-scale public and private investments, deploying novel industrial policy tools, and undertaking significant defense acquisition reforms, the Department of Defense (DOD) has made meaningful progress toward fostering an industrial base for wartime readiness. Roughly 10,000 new firms have entered the market in the past two years and nontraditional companies received over $120 billion in contract obligations in FY 2025, adding competition and innovation to the sector. Munitions contract obligations have risen 330 percent since FY 2010. Spurred by this increased demand and depleted inventories, the Pentagon is signing multiyear agreements with munitions producers and suppliers on a historic scale.”

Authors - McGinn, Jerry, Dilts, A.J.

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McGinn, Jerry, Dilts, A.J.

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Center for Strategic and International Studies (CSIS)

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