How War In Ukraine And Taiwan Tensions Caused A Supply Chain Crunch For U.S. Defense Industry



The war in Ukraine and rising tensions over Taiwan have caused demand for high-tech, American-made weapons to surge. And with the ongoing supply chain crunch and inflation continuing to rise, military industry watchers question whether the U.S. defense sector can keep up.

ā€œWe can’t rely on China to build components for our weapons, which is to some extent, potentially what we have done — whether knowingly or not,ā€ said Elbridge Colby, co-founder and principal of The Marathon Initiative.

Even with the largest defense budget in the world, the U.S. military is not immune to supply chain challenges. But with an already massive budget and questions on Pentagon spending, some critics think that more funds may not be the answer.

ā€œNext year’s national security budget will likely be nearly a trillion and a half dollars,ā€ said Julia Gledhill, an analyst at the Center for Defense Information at the Project On Government Oversight. ā€œAnd Congress wants to add tens of billions of dollars to that number, despite the fact that the Department of Defense has shown time and again that it’s not managing its finances effectively.ā€

Identifying inefficiencies and moving forward with programs that work, while sidelining those that do not, could be one way to address the problems that have plagued previous big-budget Pentagon
initiatives. The Department of Defense did not respond to CNBC’s request for comment for this story.

ā€œI don’t think that this necessarily means we’re going to blow the top off of the defense budget,ā€ said Chris Dougherty, a senior fellow at the Center for a New American Security. ā€œIt’s probably more about developing an ability to scale and ramp production, when and where it’s needed.ā€

Watch the video above to find out more about the challenges the U.S. defense industry faces, and the potential solutions to break through supply chain bottlenecks and budgetary constraints.

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How War In Ukraine And Taiwan Tensions Caused A Supply Chain Crunch For US Defense Industry

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49 thoughts on “How War In Ukraine And Taiwan Tensions Caused A Supply Chain Crunch For U.S. Defense Industry”

  1. Defense budget can be adversely impacted by China selling $trillion holding of US treasury securities too, in addition to rare earth supply dependence. Rare earth refining capacity in California cannot be rejuvenated in just a few years. Biden said will directly involved in Taiwan. Russia surely wants Taiwan started.

    Reply
  2. The military industrial complex which Eisenhower warned us against way back in the '50's wins again. Reagan started bankrupting our country back in the 80's when instead of raising taxes to pay for his ill conceived military buildup which caused 2 TRILLION in debt for the US, he lowered taxes instead. It has been all downhill from there.

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  3. Ukraine got zero modern tanks, zero jet fighter, zero ships, zero helicopters, zero heavy drones. Ukraine got 4 air defense, 15 HIMARS. West – "We're out of weapons".

    Reply
  4. There hasn't been a single year where we haven't increased the military budget.
    The military-industrial complex is playing all of us and the fact that they have bipartisan support is depressing.

    Reply
  5. I hope her response at 5:11 is reviewed when another country passes the United States and puts pressure on them.

    See how it works out for her when she's scratching for heat during the winter or food throughout the year. Hell if another superpower takes over international trade might look increasingly different.

    But it's nice to make comments from the cheap seats.

    Reply
  6. The United States might spend more on defense than the next nine largest spenders but the cost of building things is higher than in Russia or China so it's not an apples to apples comparison.

    Reply
  7. The Democrats and Republicans are exactly the same on spending crazy amounts of money on weapons of destruction. They fight only about Domestic issues like homeless people, healthcare, social security, taxes. I really wish we could get rid of both Political parties and start over. Only thing people vote for now is the lesser evil. We vote against a Political party.

    Reply
  8. See my problem is , I had to pause the video right when I heard brazil wants 75m worth of javelin systems. Why in the hell are we working with brics members……they are the ones pushing for global dominance? And I know we work with other current brics members but does anyone else see thats got bad business all over it ? Idk

    Reply
  9. Interesting topic… as American military strategists have been planning to fight in two ways, it's the lousy supply chain might fail us. Not surprised…
    Over priced military equipment, wssted material, corrupted relation between arm dealers and politicians, greedy capitalism can all lead to the downfall of a super power.

    Reply
  10. "The US railroad industry's workforce dropped from more than 1 million workers in the 1950s to fewer than 150,000 in 2022. The cost-cutting has contributed to big windfalls at BNSF and Union Pacific, the two largest railroad corporations in North America, which reported record profits in 2021."

    Reply
  11. LIES??WHY?RUSSIA DID NOT START IT??NUKES?AND DEFENCE WIFE AND MOTHER IT IS ON UTUBE OKAY BUT TV A WAR ON TV THINK UKRAINE HAS A PLAN WE DO THIS???NOW WITH THAT EVERYONE KNOWS IDIOYS???WE HAVE A VERY BAD USA?UK?AUSTRALIA CANBERRA WHY WELL RELIGION?POLITICAL VIEWS NOT GREAT AND EVEN THE WEATHER IS A DODGY THING????WHEAT?RICE?COTTON?BARLEY?CROPS SO FLOODS?AND DROUGHTS GERT BY SEA??NATIO? OH I IS FOR IDIOTS AMNESTY WELL BLOWING UP YOUR DOCTORS NURSES FOR CASH. FACT????BIDEN REALLY SAD ELDER ABUSE SO STOP TRYING TRUMP YOU CAN NOT LIKE BUT SINCE THE RIGGED ELECTION HE IS A MOCKERY AS IS M MARKLE????? USA PRAY THAT TRUMP GETS YOU CLEAR THEN DECIDE I WOULD WORK FOR HIM ASAP WHY BECAUSE HE WAS AND IS STILL RIGHT. xo THANKS D TRUMP.xo

    Reply
  12. Silly question but why would supply chains issues halt production of military gear? Shouldn't every part of a vital military resource be built by the country it is to be used by?

    I mean I can imagine that you don't bother with things like screens or keyboards but circuit boards and chips really should be produce using a secure production chain so as to not introduce opportunities for a foreign government to introduce hardware hacks into your high tech weapons. If they already do this what in the world has gotten stuck in the supply chain, everything else should be easier than that to produce locally?

    Reply
  13. å‰ęŽ’ēš„čÆ„č®ŗēœ‹å¾—å‡ŗå¤©å¤©åˆ°å¤„ęŒ‘äŗ‹å„æļ¼Œå›žå¤“čÆ“č‡Ŗå·±å¦‚ä½•å—åØčƒļ¼Œč¢«å®³å¦„ęƒ³ē—‡ē—…å…„č†č‚“+ę­¦å™Øé›†å›¢é˜“č°‹

    Reply
  14. The democratis wast so much money in this Country.
    They think we have all the money in the World. Which We Don't.
    The democratis are out to Bankrupt and Destroy America. This Great Country. And They Don't Care!!
    They have No Conscience.
    No Wisdom. No Common Sense. They couldn't even pass the "AMERICAN CITIZEN TEST."
    They Want Other Countries To Come In and Take Over. And Turn America Into a Third World Socialist Communists Dictatorship Country. Where the democratis think they are going to get Rich. šŸ¤‘
    And Reign and Rule As Kings and Queens. Has God got a Surprise For Them. šŸ˜ˆšŸ”„šŸ„µ

    Reply
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