Covid-19 and the American Defence Technological and Industrial Base: Impact and Policy Responses

The United States was quick in trying to shield its defence industrial base from the disruptions caused by the COVID-19 pandemic. The sector was declared critical infrastructure and the Pentagon adapted contract rules to infuse the industry with more cash. Yet, the disruption in commercial markets, the global supply chain delays, the move to telework, and health related shutdowns have brought many smaller businesses into difficulties and have caused larger companies to adjust their output targets for this year. At this point it is hard to make predictions for the future, but it is likely that the American defence industry will feel the fallout from this crisis – especially as defence budgets are likely to contract in the next couple of years…