WASHINGTON (Washington Insider Magazine) – As the ongoing COVID epidemic continues to upend the defense industrial foundation, the National Defense Industrial Association has given it an overall failing grade for the very first time ever.
NDIA assigned the industrial base a 69 out of 100 health and preparedness score in its 3rd annual Vital Signs assessment, which it considers an unacceptable and failing grade and “cause for real concern.”
NDIA, which collaborated on the research with decision science firm Govini, assigns a score to each category on a scale of 100 points, with scores below 70 considered poor. According to Defense News, the group focused the majority of their research on statistical data from 2020, the first year of the pandemic and before immunizations were implemented, therefore some of the findings are lagging indicators.
The supply chain and organizations’ manufacturing capacity and ability to surge if required, two of the eight essential areas used by NDIA to assess the defense industry’s health, have worsened dramatically, “almost certainly ” as a result of the pandemic’s effects, according to NDIA. In 2021, three other areas — production inputs, innovation, and industrial security — also earned poor grades, but industrial security and production inputs both improved slightly over the previous two years.
And, if the epidemic continues, it is critical for the country to work out how to address these issues, according to the association. The NDIA, on the other hand, stated that the study did not include policy recommendations, support for particular legislative or regulatory reforms, or a request for investments.
In a Wednesday morning news conference, Govini CEO Tara Murphy Dougherty said that if the military sector can’t recruit the most innovative businesses, it might become a national security risk – especially because China’s government is significantly investing in developing technology.
systems integrators, manufacturers, technology businesses, service providers, research institutions, labs, and other suppliers around the United States that help supply the military in some form make up the defense industrial base. The conclusions of the NDIA were not intended to evaluate the firms themselves, but rather the environment in which they operate, according to the organization.
A survey conducted by the NDIA in August received over 400 responses. 71% said the epidemic has harmed their business somewhat or significantly, and 14% don’t feel their company would ever recover.
Pandemic-related aid appears to have dried up as well, with 63% stating that they have not received any financial support from any source since December 2020.
