U.S. military jets are actively targeting Houthi positions in Yemen as part of an ongoing effort to curb attacks in the Red Sea. This military action began in October 2023, coinciding with the escalation of the Israel-Hamas conflict. The Eisenhower Carrier Strike Group has played a significant role in this campaign, reportedly using over 770 munitions, including 155 Standard-series missiles, which is nearly the same amount the U.S. produces annually.
This situation highlights a critical moment for the U.S. defense sector, which is facing challenges not seen since World War II. Experts argue that boosting the defense industrial base (DIB) is essential not only for national security but also for economic growth. Increasing manufacturing jobs could benefit many, including veterans and younger workers, if the government takes the right steps to support these industries.
To revitalize the DIB, experts suggest realigning its existing incentive structure. A recent report from The Heritage Foundation outlines the issues with the current congressional appropriations process, which often leads to uncertainty for defense manufacturers. This unpredictability discourages investment in new production capabilities.
One proposed solution is an output-based grant program. Under this plan, the Department of Defense would set yearly production targets. If a manufacturer falls short of these targets, they would receive a grant to cover the costs of maintaining their production capacity. For instance, if a company is expected to produce 300 Tomahawk missiles but only receives orders for 250, the DoD would compensate them for the costs of maintaining the ability to produce the additional 50 missiles.
However, creating more jobs in defense manufacturing is only part of the solution. There is currently a significant shortage of skilled workers in this sector, partly due to flaws in the education system. Experts emphasize the need for better training programs and accountability in post-secondary education, especially in trades relevant to the defense sector.
One approach to address this issue is through "returned-value formulas," which some states, like Texas, are already using. These formulas allocate funding based on student outcomes, ensuring that educational institutions focus on teaching skills that lead to good jobs.
Additionally, improving the SkillBridge program could help bridge the gap for veterans transitioning to civilian life. This program allows military members to gain skills at private companies before they leave service. Currently, companies can’t reimburse participants for related costs unless they offer the same benefit to all employees, which limits participation to those near military bases. Adjusting this rule could increase the number of veterans entering the defense workforce.
As the U.S. faces increasing global threats, enhancing the DIB is crucial. While some proposed changes may involve initial costs, the long-term benefits, including economic growth and improved national security, are expected to outweigh these expenses. Policymakers must act to fix the DIB and improve the education system to ensure the country is well-prepared for future challenges.