Pattern Left

Workforce Needs

Assessing and Strengthening Manufacturing and DIB Resiliency

In 2017, Executive Order 13806 launched a government-wide effort to assess and strengthen the U.S. defense industrial base and critical supply chains. Led by the Department of Defense, the review identified key vulnerabilities and offered recommendations to improve resilience and support national security.

In 2017, the President issued Executive Order 13806 aimed at evaluating and bolstering the U.S. defense industrial base (DIB) and supply chains critical to national security. The Executive Order emphasized the need for a “whole-of-government” assessment to address vulnerabilities like declining manufacturing capacity, supply chain risks, and economic threats from foreign competition.

The Department of Defense (DoD)  coordinated a comprehensive interagency review. The key deliverable was a report assessing DIB strengths and weaknesses, identifying risks, and recommending actions to enhance resiliency.

SecAF visits Eglin AFB

Key Elements of the Response Report

The report, titled Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States, highlighted an “unprecedented set of challenges” eroding the DIB, including:

  • Budgetary and Market Pressures: Sequestration, uncertain government spending, and the decline of critical suppliers.
  • Supply Chain Vulnerabilities: Diminishing manufacturing sources, material shortages (DMSMS), and over-reliance on foreign sources, particularly for rare earth elements and semiconductors.
  • Workforce and Technology Gaps: Shortages in skilled labor, cybersecurity threats, and erosion of R&D investment.
  • National Security Implications: These factors threatened DoD’s ability to maintain readiness for immediate conflicts (“fight tonight”) or scale up for great power competition.

The report proposed over 240 recommendations, categorized into short-term (immediate actions) and long-term (strategic reforms) solutions, such as:

  • Increasing domestic manufacturing incentives and onshoring critical supply chains.
  • Enhancing cybersecurity and intellectual property protections.
  • Boosting workforce development and R&D funding.
  • Streamlining acquisition processes to prioritize U.S.-sourced materials.

Key Workforce Recommendations

The report highlights the diminishing STEM and trades skill sets as a significant risk to the resiliency of the U.S. manufacturing and defense industrial base. This is due to a variety of well documented reasons:  changing demographics, perception of manufacturing and cultural bias, as well as long term off-shoring of manufacturing.

The report proposes a range of cross-cutting and sector-specific strategies to address these challenges, emphasizing education, training, incentives, and policy reforms. Below is a summary table of the primary recommendations.

Why this matters to local workforce development efforts

Category

Skills Development & Education Pipeline

Recommendation

Accelerate domestic STEM and trade skills growth

Details/Action

Target projected needs (e.g., +962,000 STEM jobs by 2026; machinists to 343,200 by 2024, +7.8%; industrial mechanics to 201,000, +13.2%). Coordinate DoD, Dept. of Education, and Commerce to identify critical occupations using BLS data and 2018 SOC codes. Develop federal/state/academic programs for future skills like programming and automated systems maintenance (e.g., CNC operators).


Category

Apprenticeships & Training Programs

Recommendation

Establish Task Force on Apprenticeship Expansion

Details/Action

Led by Dept. of Labor to promote apprenticeships in manufacturing/defense sectors with insufficient programs. Restructure Defense Acquisition University as a hub for workforce education and acquisition agility training. Offer tuition reimbursement and incentives for recruitment/retention.


Category

Barrier Reduction & Mobility

Recommendation

Eliminate occupational licensing restrictions

Details/Action

Enable geographic mobility for skilled workers (e.g., to shipyards or depots). Streamline security clearances via Defense Vetting Directorate and analytics; allow “transfer in status” for clearances and lift 180-day hiring ban for ex-military technicians (per 5 U.S. Code 3326). Mitigate shutdown/furlough impacts on STEM retention.


Category

Sector Specific Hiring &
Funding

Recommendation

Fund R&D and stabilize orders for targeted sectors

Details/Action

Aircraft: Maintain design teams and fund knowledge transfer. Shipbuilding: Hire welders/casters amid 6–17% job declines. Nuclear: Increase citizen STEM graduates. Ground Systems: Stabilize orders to preserve labor. Machine Tools: Build continuous education pipelines. DoD Maintenance: Train for new tech and remove statutory hiring barriers.


Category

Transition to Future Economy

Recommendation

Prioritize training for emerging roles

Details/Action

Shift from declining traditional jobs (e.g., assemblers, mold makers) to growth areas like CNC programmers and machinery troubleshooters. Address shortages in specific roles (e.g., software developers for radar, biophysicists) through enhanced recruitment.

Read the Full Report