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Mexico factory closures hit US defence production

21st April 2020 - 10:30 GMT | by The Shephard News Team


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. 

The Shephard News Team


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