Recent remarks by Assistant Secretary of War for Industrial Base Policy Michael Cadenazzi at the Center for a New American Security (CNAS) on June 16, 2026 in Washington, D.C., offer one of the clearest indications yet that Washington is entering a new era of defense industrial mobilization.
While public debate often focuses on platforms, procurement budgets, and operational requirements, the Department of War is increasingly focused on a more fundamental question: can the United States produce the capabilities required to sustain deterrence and prevail in a prolonged conflict?
The answer, according to current Department leadership, lies not only in technological innovation but in rebuilding the industrial foundations of American power.
A central theme emerging from the Department of War is that future military advantage will be determined as much by production capacity as by technological superiority.
For decades, defense acquisition prioritized efficiency, consolidation and globalized supply chains. Today’s strategic environment demands a different approach—one centered on resilience, scalability, and industrial readiness.
The Department is increasingly viewing production lines, skilled labor, critical materials and manufacturing infrastructure as strategic assets that directly contribute to national security.
The Administration’s recent use of Defense Production Act authorities reflects a broader shift toward proactive industrial policy.
The objective is not simply to increase production of specific munitions or systems. Rather, it is to establish enduring mechanisms capable of expanding capacity, reducing bottlenecks and strengthening the industrial ecosystem that supports U.S. military power.
This effort extends beyond traditional defense contractors and increasingly incorporates commercial manufacturers, advanced technology firms, workforce development initiatives and strategic materials suppliers.
Perhaps the most consequential theme emerging from current Department of War thinking is the growing importance of critical minerals and strategic materials.
Senior officials increasingly recognize that defense industrial expansion cannot occur without secure access to rare earth elements, gallium, germanium, advanced materials and other key inputs that underpin modern weapons systems.
As a result, supply chain security is rapidly becoming a national security priority in its own right.
This trend is likely to drive increased government attention toward domestic production, allied sourcing arrangements, strategic stockpiles and industrial investment throughout the broader defense ecosystem.
The Department appears focused on creating stronger incentives for industry to invest in production capacity through more predictable demand signals, long-term procurement planning, and closer alignment between government requirements and industrial investment.
At the same time, there is a growing expectation that industry will deliver measurable outcomes in the form of expanded capacity, improved resilience and stronger delivery performance.
The result is a more strategic partnership between government and industry—one focused less on process and more on production.
The evolving policy environment presents significant opportunities for companies operating across the defense industrial base, including manufacturers, technology firms, critical materials suppliers, workforce development organizations and logistics providers.
It also reinforces the importance of trusted allied participation in North American and transatlantic defense supply chains. As the United States seeks to strengthen industrial resilience, allied nations with complementary capabilities will play an increasingly important role in supporting collective security objectives.
The Department of War’s current approach reflects a fundamental shift in strategic thinking. Industrial capacity is no longer viewed as a supporting function of defense policy—it is becoming a core instrument of national power.
For industry leaders, defense companies and allied partners, the message is clear: future relevance will depend not only on innovation, but on the ability to manufacture, scale and deliver.
The organizations best positioned for success will be those that understand the growing intersection of defense policy, industrial capability, supply chain security, and strategic materials.
As Washington increasingly prioritizes industrial readiness, the defense industrial base is emerging as one of the most important arenas shaping U.S. national security policy in the years ahead.
Forging Our Future Together: The New Era of U.S.-Japan Relations.
GX, DX, and AI innovation at Deloitte Tohmatsu Innovation Park
USJC (U.S. - Japan Council) annual conference in Tokyo
