# New defense industrial strategy, DLA demand forecast to chart road map for logistics partners 

/ Published Nov. 7, 2023
FORT BELVOIR, Va., 
Resilient supply chains, workforce readiness, flexible acquisition and economic deterrence are priorities of a new National Defense Industrial Strategy set to debut in early December, a Defense Department leader told Defense Logistics Agency and industrial base members Nov. 6.

                231106-D-HE260-1041                            Laura Taylor-Kale, assistant secretary of defense for industrial base policy, outlines the new National Defense Industrial Strategy scheduled to be released in early December during a Defense Logistics Agency event focused on demand forecasts Nov. 6 at Fort Belvoir, Va. Photo by Chris Lynch            SHARE IMAGE:Download ImageImage DetailsPhoto By: Christopher J. LynchVIRIN: 231106-D-HE260-1041“We’re issuing this strategy in recognition of the many growing challenges in the defense industrial context, whether it be the supply chain, workforce, or technological changes that affect business models and products and services that a lot of your companies are developing,” said Laura Taylor-Kale, assistant secretary of defense for industrial base policy.

Spending constraints and geopolitical threats are other factors necessitating the strategy, which reinforces the 2022 National Defense Strategy. Taylor-Kale, who spoke at a DLA Demand Forecast event where industry associations got a first glimpse of areas where the agency expects to do the most business in 2024, said the strategy is expected to develop an industrial ecosystem that gives the United States a competitive advantage over its adversaries.

An implementation plan with actionable steps and metrics is expected to be released in January.

“It’s certainly good that we’re outlining the challenges and it’s great to have a set of actions that are measurable. But if we decide to stray in any kind of way, let’s not be mistaken that there are real risks involved by not achieving these actions,” Taylor-Kale said.

Creating resilient supply chains includes incentivizing industry to invest in extra capacity, leveraging data analytics to improve sub-tier visibility, enhancing cybersecurity and managing inventory. Monitoring the National Defense Stockpile to ensure the nation has ample strategic materials is critical, Taylor-Kale said, and her office will establish a board of directors for charting the NDS forward.

Enhancing the skills of those in manufacturing and industrial work as well as bringing in new laborers will help ensure workforce readiness, she continued. DOD is working with Howard University to build research and education programs that enable new workforce capabilities in areas like advanced manufacturing, though she said traditional skills such as those in casting and forging remain critical for defense contractors.  

                231106-D-HE260-1033                            Senior leaders from the Defense Logistics Agency and industrial base listen to Laura Taylor-Kale, assistant secretary of defense for industrial base policy, outline the new National Defense Industrial Strategy Nov. 6 at Fort Belvoir, Va. Photo by Chris Lynch            SHARE IMAGE:Download ImageImage DetailsPhoto By: Chris LynchVIRIN: 231106-D-HE260-1033 The strategy also requires the department to better use existing acquisition tools and policies.

“We’re not calling for comprehensive, across-the-board reform,” Taylor-Kale said, adding that weapons systems support for Ukraine has revealed challenges in international collaboration.

“In order for us to really be prepared for the challenges and pacing threats of the future and some of the current threats, we have to be able to work more intraoperatively with our global partners and allies,” she said.

Steps in economic deterrence will ensure DOD, the defense industry, and partner nations have fair and effective mechanisms to address adversaries who attempt to interfere in the U.S. industrial base, Taylor-Kale added.

“It’s important for the U.S. to lead in standard-setting bodies, both globally and domestically, to get more interoperability and to a place where we can leverage our bilateral and multilateral relationships,” she said. “And we need to build alliances for sharing science and technology.”

DLA Director Navy Vice Adm. Michelle Skubic underscored the need for collaborative efforts among DOD and industry by highlighting concerns like increasing lead times.

“Increasing lead times across our suppliers and slacking on-time delivery add up to a lot of risk for our warfighters, and that’s a risk we can little afford to have on our nation’s security,” she said.

Navy Rear Adm. Doug Noble, DLA’s director of logistics operations, described fluctuating sales for supply chains like hardware, medical, and construction and equipment from fiscal 2020 through 2023. Though sales initially dipped overall, they rose slightly in fiscal 2023 and should see another small rise through fiscal 2024 based on projections from service and whole-of-government partners, he said.

The agency had over $49 billion in obligations in fiscal 2023, Skubic added. It also exceeded its small business goals for the 11th consecutive year with about $18 billion worth of contracts going toward small businesses.

“That’s our highest dollar amount in history going to small businesses,” she said. “All six of our major subordinate commands exceeded their targets.”     

Representatives from 10 industry associations attended the meeting and included the Professional Services Council, National Defense Transportation Association and Aerospace Industries Association. A full list of associations that attended and the meeting slides are available on the DLA Demand Forecast for Industry website.