The number of companies supplying the US military is steadily shrinking, with more leaving the sector than are joining, according to a report by the National Defense Industrial Association (NDIA).
In 2021, there was a net loss of 3,300 companies, while the number of firms in the sector has fallen from 76,700 in 2017 to just under 60,000. Of the companies surveyed by NDIA, 42% said they were the only supplier of a product to the US military. Sixty-six percent found working with the department “difficult”, with bureaucracy in the acquisition process the biggest problem. Workforce challenges and inflation are also factors.