The relationship between the U.S. military and American manufacturing

September 9, 2011

For a significant portion of recent U.S. history, the nation’s military forces and manufacturing industry have had a significant connection. In more recent years, some have stated that this connection may not be being used to its fullest potential for benefiting the processes of both parties involved, according to Forbes.

The news source reports that this trend is in contrast to practices of the past, when the need for sophisticated defense technologies prompted the leading figures of the U.S. armed forces, based in the Pentagon in Washington, D.C., to invest billions that were funneled to American manufacturing businesses.

Numerous factors and circumstances that have arisen more recently may have changed that fact to some extent, according to the news source. Decisions by leading Pentagon officials have, directly or indirectly, brought adverse side effects to U.S. manufacturers, including the outsourcing of military manufacturing contracts to foreign businesses and obtaining necessary materials for defense projects from non-domestic sources.

The size of the connection between the military and manufacturing is considerable – the Pentagon annually issues $400 billion in contracts for various products and constitutes more than 10 percent of the U.S. demand for domestically manufactured goods.

According to the Bureau of Labor Statistics, the aerospace manufacturing sector is not likely to experience any positive or negative changes in wage and salary employment between 2008 and 2018.