The Aerospace Industries Association (AIA) and consulting firm Kearney have released a joint report examining how U.S. aerospace and defense companies are adjusting their manufacturing strategies to strengthen supply chains.
The study, titled "Strategic Localization: Balancing Risk, Value, and Technology Sovereignty in Aerospace and Defense Supply Chains," outlines steps for expanding domestic manufacturing leadership and improving the resilience of the sector’s supply chain. The report also offers recommendations for federal policies that could support these objectives.
Eric Fanning, President & CEO of AIA, stated: “The backbone of American aerospace and defense is our supply chain. When disruptions strike, the impact is immediate. AIA’s new report with Kearney makes clear that expanding domestic manufacturing is essential to reducing risk, accelerating innovation, and ensuring we can respond rapidly in times of crisis. By investing in resilient, high-tech production at home, we not only protect our national security but also maintain America’s leadership in the global aerospace marketplace.”
Claudia Galea, Principal at Kearney, added: “U.S. leadership in aerospace and defense relies on both innovation and core domestic manufacturing. Strengthening technology sovereignty through advanced manufacturing and trusted-ally partnerships secures critical capabilities and boosts resilience and competitiveness.”
According to the findings, nearly 60 percent of companies surveyed are considering moving production back to the United States, while 15 percent have already started increasing domestic manufacturing capacity. Rather than choosing strictly between globalization or localization, many firms are adopting a range of approaches such as reshoring operations, sourcing regionally, or collaborating with trusted international partners.
The report draws from surveys and interviews with more than 30 industry leaders. It provides a framework for decision-making as well as a phased roadmap for advancing localization efforts over short-, medium-, and long-term horizons. The research emphasizes that building a resilient industrial base requires balancing domestic capabilities with foreign partnerships among allies alongside ongoing innovation.
For more information or to access the full report from AIA and Kearney on strategic localization in aerospace supply chains visit their official website.
