A sweeping Defense Department review ordered by President Trump has identified roughly 300 gaps in weapon-makers' supply chains that could threaten U.S. military campaigns if they're not corrected, a senior administration official said Thursday.
The report, commissioned in July 2017, will be presented to Trump on Friday, and the president is expected to earmark funds available through both the Defense Production Act and a 1939 defense stockpile program to address some of them, the official said.
The issues were identified largely at small and midsize firms that have supplied top-line U.S. contractors like Boeing and Lockheed Martin and have been harmed more than their larger customers by cuts in U.S. government spending, the official said.
Compiled by 16 working groups with hundreds of subject-matter exports, the report found both fragile markets and weakened companies, situations that could affect the production of devices such as propeller shafts, as well as supplies of raw materials like rocket fuel, ceramics used in body armor, and metals used in combat vehicles.
"We have a situation where we've identified a number of vulnerabilities which demand immediate action," the official said. "This administration's hallmark is immediate action, and with this report, there's also a blueprint for actions that will be launched immediately."
The review reflects the president's belief that economic security is synonymous with national security, highlighted with the imposition of double-digit tariffs on steel and aluminum earlier this year. Those duties were set under Section 232 of the Trade Expansion Act of 1962, which allows the White House to intervene in markets to protect national security.
The administration has already begun to address some of the vulnerabilities the report found, putting $70 million toward a plant that produces gun components to help with modernization and securing of its production lines and investing $1 million to boost progress toward a facility that produces part of the Abrams tank.
Trump ordered the review in July 2017, noting at the time that the loss of 60,000 American factories, key companies, and almost 5 million manufacturing jobs since 2000 threatened to undermine the ability of U.S. manufacturers to meet national defense requirements.
Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, echoed the president's concern in a September 2017 confirmation hearing with the Senate Armed Services Committee.
"We face very real and significant readiness challenges today, and we have failed to adequately invest in the future," he said at the time. If the shortfall isn't addressed, Dunford added, "it will have a profound effect on our ability to deter conflict and to respond effectively if deterrence fails."