Axios Live: Supply chain modernization is an urgent U.S. defense need, leaders say

OXON HILL, Md. – Defense supply chains are having a moment as industry and government aim to improve and speed up U.S. capabilities in rapidly emerging new technologies, defense leaders said at an Axios Live Expert Voices roundtable this week.

Why it matters: As the U.S. seeks to remain competitive and as global conflict evolves, a modernized military is critical to national security and deterrence.

Axios' Colin Demarest moderated the April 20 roundtable discussion, sponsored by Xometry.

Here are five takeaways from the conversation.

1. "I think supply chains have always had a moment, it's just that they were in the shadows in the back, and up until supply chains were disrupted, you don't know supply chain issues," E2open chief strategy officer Pawan Joshi said.

• Disruptions during the COVID-19 pandemic pushed supply chains from a warehouse issue to a boardroom issue, he said.

2. The 2024 Hezbollah pager attack in Israel highlighted the risks of a lack of control over the supply chain and a reliance on other countries for technologies, said Cameron Mayer, Booz Allen executive vice president and defense technology market lead.

• "If we can't control those, one, it significantly increases our risk on some of the most basic things like communications, but two, it could paralyze us in the most critical time."

3. "There's a speed play here too that's bringing sexy back," Saronic Technologies co-founder and chief commercial officer Rob Lehman said.

• "I think on the new tech side, what's going to burn people, and probably burn the [Defense] Department too, is if you prototype but you don't have your supply chain locked down."

4. The competition from China should focus government, industry and academic leaders on these issues, Antares head of strategy and policy Tom Mancinelli said.

• "[T]he scale of what they can produce, and the rate at which they can produce, is just outpacing us," Mancinelli said. "We want to deter and prevent conflict, but the way we do that is by showing that we can build at rate and at scale, and right now, our record on that is really spotty, I think."

5. Wartime versus peacetime footing differs substantially, and the quick, evolving action in Iran has caused massive spikes in demand for things like munitions and shipbuilding, Obviant CEO Brendan Karp said.

• "I think that how we not only articulate that demand signal, but also ensure the consistency of that demand signal, has never really been a constant force, though, on the government side, which makes it really difficult for the private sector to ramp up and meet those spikes," Karp said.

Content from the sponsor's remarks:

In his introductory remarks, Xometry CEO Randy Altschuler said pressing issues exist in military procurement and sustainment, including parts backlogs.

• "We see those problems not only directly in the government and military, but even with primes and throughout the supply chain, where there just isn't enough capacity," he said.
• "In times like today, in real-life situations, we're seeing the impact of that."