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.
You may also like
More from Defence Notes
-
![Spain unveils new multi-billion euro defence investment plan]()
Spain unveils new multi-billion euro defence investment plan
The new plan outlined how Spain would reach 2% of its GDP spend on defence by 2025, with €1.9 billion earmarked for new equipment acquisition with several land, naval and air platforms disclosed to be replaced or upgraded.
-
![New Zealand boosts defence spend to US$6.6 billion and vows increased closeness with Australia]()
New Zealand boosts defence spend to US$6.6 billion and vows increased closeness with Australia
This budget will be spent over the next four years and nearly doubles the country’s defence spending as part of GDP to 2%.
-
![UK Chancellor commits £2 billion to make the country a “defence industrial superpower”]()
UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
-
![Avalon 2025: Australian defence budget meets the low expectations of show attendees]()
Avalon 2025: Australian defence budget meets the low expectations of show attendees
The Australian Budget was marked by tax cuts and a looming general election which led to little hope that there would be a substantial defence boost even with a big bill for nuclear submarines due.
-
![Launch of Gilat Defense targets DoD market]()
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.
