Inside the $30B Industrial Base Crisis — How Contractors Can Fill the Gap!

In this episode of The Daily Windup, I sit down with Frank Kendall, former Secretary of the Air Force, to unpack one of the toughest challenges facing national defense today — the shrinking U.S. industrial base. Frank explains how, after two decades of decline, the U.S. no longer has the production capacity or lead times to meet urgent wartime demand. We've seen this shortage firsthand in the fight against ISIS and again during the Ukraine conflict, where the U.S. struggled to produce enough munitions fast enough. Frank shares how risk management, not "infinite budgets," must guide rebuilding efforts — and how small and mid-sized government contractors can align themselves with Air Force modernization goals through partnerships with futures and technology development commands.

Key Takeaways:

• The U.S. defense industrial base has been shrinking for 20+ years, leaving critical capacity gaps in wartime.

• Building for "war-level demand" is financially impossible — smart risk-based investments are essential.

• Small and mid-sized contractors should connect with Air Force's Integrated Capabilities Command and Technology Development Office to align with future opportunities.

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