Even prior to Operation Epic Fury, recent U.S. missile expenditures had begun to generate concerns about the depth and resilience of U.S. inventories and production rates. The increasing use of missiles as “weapons of choice” has created significant urgency behind efforts to strengthen the air and missile defense interceptor industrial base, particularly for key components such as solid rocket motors. The market for missile suppliers has several characteristics, many of them common with other defense acquisition programs and others that are unique to these systems. These characteristics create significant challenges to increasing production rates, including cyclical demand cycles, management of complex supply chains, and alignment of government and industry incentives. At the same time, the recent attention to missile production issues creates many opportunities to overcome these traditional challenges, including through multiyear procurement agreements, direct-to-supplier investments, alternative acquisition pathways, and leveraging allies and partners. 

This report was made possible by the generous support of Raytheon Technologies, Ursa Major, and X-Bow, and by general support to CSIS.