The Department of Defense (DoD) released its first ever National Defense Industrial Strategy (NDIS) on January 11, 2024, marking a shift in U.S. strategic posture towards industrial policy.

The NDIS offers “a strategic vision to coordinate and prioritize actions to build a modernized defense industrial ecosystem that is fully aligned” with the National Defense Strategy. The NDIS emphasizes four long-term strategic priorities: (i) building resilient supply chains, (ii) securing workforce readiness, (iii) enabling flexible acquisition, and (iv) promoting economic deterrence.

In Part I of this Client Alert, Stout’s Aerospace, Defense, and Government Services Investment Banking team provides a summary of the key actions identified by the DoD as necessary to achieve those strategic priorities. Part II puts those actions in context, highlighting the areas likely to be most of interest to Industry participants.

Overview for This Client Alert:

Part I

• Building Resilient Supply Chains
• Securing Workforce Readiness
• Enabling Flexible Acquisition
• Promoting Economic Deterrence

Part II

• Role of Allies and Partners
• Role of Non-Traditional Suppliers and Commercial Technology
• Recognition of Disproportionate Challenges Faced by Small and Medium-Sized Contractors