Mexico factory closures hit US defence production
The Department of Defense (DoD) has confirmed that the industrial impact of COVID-19 is beginning to hit the US defence industry, particularly due to factory closures in Mexico.
The aviation supply chain, shipbuilding and small space launch sectors are the worst hit areas of the defence industrial base.
During a Pentagon press briefing on 20 April, Ellen Lord, US Under Secretary of Defense for Acquisition and Sustainment, said: ‘These companies are especially important for our US airframe production.’
In total, 106 prime contractor facilities are closed, whilst 68 others have reopened after a period of closure out of 10,509 prime defence manufacturers.
The DoD has tasked the Defense Contract Management Agency with monitoring the state of the US military’s industrial base for large prime contractors, whilst smaller prime companies are being overseen by the Defense Logistics Agency.
More from Defence Notes
-
![Malaysia’s defence budget sets out major procurement goals for 2026]()
Malaysia’s defence budget sets out major procurement goals for 2026
The country has allocated RM21.70 billion for defence spending next year, with some major procurements set to be initiated across the country’s army, navy and air force.
-
![How Canada plans to “seize” the opportunity to increase investments in defence]()
How Canada plans to “seize” the opportunity to increase investments in defence
The Canadian Department of National Defence has been increasing efforts to accelerate the acquisition of new equipment and modernise its in-service inventory.
-
![Palantir and Boeing partner up to bring AI to defence manufacturing]()
Palantir and Boeing partner up to bring AI to defence manufacturing
The partnership with the US airframer will see Palantir’s AI software leveraged to help streamline data analytics across Boeing’s 12 factories on defence and classified programmes.
-
![DroneShield to double its US footprint to meet growing demand for counter-UxS capabilities]()
DroneShield to double its US footprint to meet growing demand for counter-UxS capabilities
DroneShield disclosed to Shephard its plans to increase its workforce and manufacturing capacities while strengthening partnerships with US suppliers.
-
![Singapore’s DSTA seeks wider partnerships to advance robotics and AI capabilities]()
Singapore’s DSTA seeks wider partnerships to advance robotics and AI capabilities
The technology organisation is expecting a significant rise in the number of staff working across robotics and digital solutions as it becomes more of a focal point.
