Building a Resilient Supply Chain: Regional Security Leaders Focus on Industrial Readiness

Northeast National Security Conference examines how the U.S. can strengthen its defense industrial base

Supply chain security has become a central issue for the drone industry. As the U.S. government pushes to expand domestic drone manufacturing, reduce reliance on foreign suppliers, and secure access to critical technologies, manufacturers are facing new questions about sourcing, production capacity, workforce development, and long-term resilience.

Those themes were front and center during one session at the Northeast National Security Conference, hosted by the New Hampshire Tech Alliance. The event brought together representatives from government, industry, academia, and investment firms to discuss challenges facing the U.S. defense industrial base.

Note: The conference was conducted under Chatham House Rule, allowing participants to discuss issues openly while preventing attribution of comments to individual speakers or organizations.

Understanding Hidden Supply Chain Risks

One of the strongest themes to emerge was visibility.

Participants noted that many companies understand their Tier 1 suppliers but have limited visibility into Tier 2 and Tier 3 suppliers. As a result, critical dependencies often remain hidden until a disruption occurs.

Those disruptions can take many forms, including shortages of critical minerals, transportation bottlenecks, cybersecurity incidents, geopolitical conflicts, or the failure of a small but essential supplier.

Several panelists argued that organizations should think beyond cost and availability when evaluating suppliers. The greater concern is concentration of risk. A supply chain may appear efficient until a single point of failure creates cascading problems throughout the system.

Examples from healthcare and energy highlighted the issue. Healthcare organizations often require dual-source suppliers for critical products. Hawaii’s investment in renewable energy was cited as a response to reliance on a single source of imported fuel. In both cases, leaders identified strategic vulnerabilities and took deliberate steps to reduce dependence on any one supplier or source.

For defense manufacturers, the lesson was clear: resilience requires diversification, redundancy, and active development of supplier networks.

Accelerating Innovation Through Capital

A recurring topic was the challenge of moving technology from development to deployment quickly, a priority that the current US administration has focused on repeatedly in communications from the Department of War.

Participants noted that many innovative companies fail before reaching government customers, not because the technology lacks promise, but because they run out of funding during the lengthy path to procurement.

One government-supported initiative focused on strengthening the defense industrial base described a shift in approach. Rather than accepting government funding for research projects that may never reach operational users, organizations are increasingly looking to involve venture capital earlier in the development process.

The goal is to help companies mature technologies faster, demonstrate commercial viability, and arrive at government customers with proven solutions. For startups, that approach may help bridge the gap between innovation and adoption. For government buyers, it offers a potential pathway to receiving capability more quickly.

Building Systems That Can Adapt

While participants discussed a wide range of challenges, a common message emerged: resilience is not about building a perfect supply chain.

Instead, organizations should focus on building systems that can adapt under pressure. Open architectures, interoperable systems, strong supplier partnerships, and continuous supplier development were all cited as important elements of a more resilient industrial base.

For the drone industry, that message carries particular significance. As government policy increasingly emphasizes trusted supply chains and domestic manufacturing capacity, industrial readiness may become just as important as technological innovation.

Read more:

• Drone Dominance: The Defense Department’s Push to Build a Scalable U.S. Drone Supply Chain
• FCC Grants Conditional Approval to Sees.ai UAS, Signaling New Path for Foreign Drone Systems
• FCC Seeks Input to Advance U.S. Drone Industry