Key Points

• The instability of the global supply chain has led to bottlenecks at our ocean ports, causing delays in getting your life-changing and life-saving product to market.
• OEMs in the defense space can and should leverage domestic manufacturing for a variety of reasons including ITAR compliance and intellectual property right protection.
• Engaging with a high-quality domestic manufacturing partner can help you navigate supply chain challenges.

The warfighter must always be prepared to head down range. History has shown us that war only stops when the threat is neutralized. In the same vein, the production of equipment and technology intended to aid the warfighter and defense industry must also remain constant and readily available. Without a well-prepared and equipped force, the safety and security of our nation is at risk.

One of the major challenges in ensuring our warfighters are well-equipped is the instability of the global supply chain. Supply chain bottlenecks, specifically at our ocean ports, have been a concern for quite some time. Foreign wars, as evidenced by the war in Ukraine, also negatively impact the speed at which we can receive goods and parts.

How do we reduce risks such as these to equip our warfighters as quickly as possible? The answer lies in domestic manufacturing. 

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At a high level, it makes complete sense: the closer to home we can manufacture parts, the less we are impacted by the troubles abroad and supply chain bottlenecks. 

Yet, it goes much deeper than this. In support of our national security needs, the federal government needs access to domestic manufacturing capabilities for a variety of reasons. Data security, an unpredictable global supply chain, and a reduced dependency on foreign manufacturers are at the top of the list. Read on to learn how domestic manufacturing benefits defense partners like you.

As a manufacturing partner to many OEMs in the defense space, we understand the need for high-quality products made quickly. If you need a high-quality manufacturing partner that can deliver speed and precision with the attention to security you depend on, contact us today.

Made in America, by Americans 

In January 2021, President Biden signed executive order 14005, “Ensuring the Future is Made in All of America by All of America’s Workers.” Commonly known as ‘Buy American’, E.O. 14005 is an attempt to strengthen the use of federal procurement to support American manufacturing. What does this mean exactly?

Simply put, it means that the American government places a priority on domestic manufacturing when it comes to industries like aerospace and defense. It aims to support access to domestic manufacturing capabilities by requiring a certain percentage of goods purchased with taxpayer money be purchased in America. As of October 2022, that percentage requirement is 60%. In 2024, it will increase again to 65%, and in 2029 it will reach 75%.

Having a domestic supply chain is critical to remain eligible for federal procurement. If a manufacturer were to have violated the Buy American statute, the government would likely suspend all purchases of those parts/products. Something as seemingly simple as an alloy used in magnets coming from China can upend an entire contract, and what's more important, trust. A mistake like that is costly and can damage a reputation.

With annual procurement spending upwards of $600 billion, that translates to a lot of money being spent within our border walls in support of our nation and its warfighters. 

Supply Chain Control 

Utilizing domestic manufacturing comes with plenty of benefits that help you get your product into the hands of our nation's warfighters sooner. Some of these benefits include:

• Easier communication. Manufacturing overseas comes with cultural and language barriers that can hinder effective communication.

• Reduced shipping cost. Your parts can avoid the trip via ship and skip the customs fees and overseas transport costs.

• Quicker turnaround. Sourcing domestically often means faster turnaround times.

• Better shop insight. Choosing a domestic manufacturer allows you to see firsthand how their facility operates and how their products are produced.

Having control over your supply chain can increase your ability as an OEM to meet target deadlines and satisfy stakeholders. 

ITAR Compliance 

The International Traffic in Arms Regulations (ITAR) controls the export and import of defense-related articles listed on the United States Munitions List (USML). It is a federal requirement that all manufacturers, exporters, and brokers of defense articles, defense services, or related technical data must be ITAR compliant. 

It’s not enough to slap “ITAR Registered” across your marketing material–you must ensure that your business is entirely compliant to avoid being barred from future exports, hefty civil and/or criminal fines, and/or imprisonment. Doing time or paying fines is not something we’re interested in exploring here at Modus, which is why we have invested so heavily in ensuring we are ITAR-compliant.

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Intellectual Property Right Protection 

Modus works with OEMs like you in the defense space, and with that comes a significant responsibility to protect the information that you trust us with.

The United States has some of the toughest intellectual property laws in the world, making domestic manufacturing safer than engaging with a manufacturing company abroad. There is significantly less chance that your part design and/or related information will be stolen while being manufactured here in the USA.

As an OEM in the defense space, your designs directly impact the warfighter and our national security. As your partner, it’s our responsibility to ensure we invest in cybersecurity to protect that data in every way possible. That’s why we are actively working toward Cybersecurity Maturity Model Certification (CMMC) Level 2 compliance, while also implementing practices of higher levels of compliance. 

Investment in Automation 

One of the major challenges in domestic manufacturing is competing internationally as it relates to the cost of labor. Inexpensive labor abroad is fraught with challenges and ethical concerns–exploitive child labor and unsafe working conditions quickly come to mind. 

To be competitive in the global market, we need to ensure that there is greater output per unit of input. This means investing in automation to offset labor costs.

At Modus, we have invested heavily in automation and continue to do so to meet the needs of OEMs in the defense space like you. Increased investment in this area translates to a higher quality product and rapid speed to market, two majorly lacking areas in international manufacturing.

Modus: Providing Domestic Manufacturing for Defense Partners

As you can see, domestic manufacturing comes with loads of benefits for defense partners. You can be confident in your decision to work with a high-quality American manufacturing company such as Modus to bring your products from Idea to Ignition^TM. Your mission is our mission. Work with us today.