Thursday, April 23, 2020

Potential Delays but No Hard Stop in Defense Industry

As industries across the United States begin to crack under the COVID-19 pressure, the defense industry keep scraping along. Companies and agencies are still hiring amid the pandemic and it is reported that the defense industry has maintained an normal number of contracts throughout the crisis.

While production on industry keystones such as F-35's and missiles has continued, serious delays are expected in project completions. F-35 factories in Italy and Japan experienced severe setbacks as COVID-19 raged through the world. The factories underwent full closures and upon reopening, encountered staffing shortages, sick workers, and community push-back. Key factories in the production line of missiles have also shut down in Mexico. The U.S. has been pressuring the Mexican government to allow the factories to reopen, but have not been successful thus far.

These delays and shortages may be indicative of the larger global supply chain issues that are expected as companies reopen their economies at various times.

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