Defense Industrial Base Size and Growth Trends

A substantial portion of RegDOX’s business is servicing the US Defense Industrial Base (DIB), so just as with many of the readers of this blog, we are attentive to trends within that industrial group.  We thought some of you might be interested in some of the high-level characteristics of the DIB that we check in on periodically.

In 2021, the DIB – which is the worldwide network of research, design, production, delivery, and maintenance companies servicing US military needs – included perhaps as few as 100,000 companies or, as estimated by the Congressional Research Service, over 200,000 companies or by the Defense Department, over 220,000 companies.  It may be even, as estimated by at least one company, “over 365,000 suppliers.”

Whatever the exact size, it is clear that, at a minimum, the domestic DIB, located in the United States, includes at least 60,000 companies employing about 1.1 million Individuals and services over $400 billion annually in defense contracts. That amount is about half of the US Defense Department’s annual 2023 budget of $858 billion.

The top five domestic military contractors in FY 2021 were Lockheed Martin ($39.2 billion), Boeing ($23.6 billion), Raytheon Technologies ($21.4 billion), General Dynamics ($16.9 billion), and Northrop Grumman ($15 billion).  These figures indicated that these five companies constitute a little over a quarter of the DIB. However, much of their DIB revenue flows to second and third-tier contractors.

With evolving and increasingly strict cybersecurity requirements for DIB companies, the burdens for participating in the DIB are not slight. Still, the rewards can be great both as an opportunity to contribute to our national defense and as a source of company revenue.  Companies such as RegDOX exist to enable and ease cybersecurity compliance.  If that is your concern as you participate in the DIB or contemplate joining, let us know, and we will show you how we can help.

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