ABOUT AMERICA’S DEFENSE-INDUSTRIAL BASE

President Dwight D. Eisenhower’s farewell address is most famous for its warning against the “unwarranted influence” of the military-industrial complex. But Eisenhower also stressed the defense industry’s importance to the country’s security: After all, it helped the U.S. maintain superiority over its rivals, forestall great-power conflict and win the Cold War.

Six decades on, America’s military remains the most advanced in the world — but the industrial base supporting it has deteriorated. Industry consolidation, domestic manufacturing decline and dysfunctional federal budgeting have combined to reduce competition throughout the defense supply chain, eroding military readiness and potentially jeopardizing national security.

As Congress considers the Defense Department’s next budget, investing in a more nimble, innovative and resilient defense-industrial base should be among its highest priorities. Some parts of the defense industry, to be sure, continue to flourish. The U.S. spends more on its military than the next 10 countries combined, with the Pentagon’s budget consuming more than half of all federal discretionary spending. Revenue for defense contractors has increased by 83% since 2011, with annual spending per company doubling in the past five years alone.

That money, however, is flowing to a reduced cast of contractors. An analysis by Bloomberg Government found that the number of Pentagon “prime vendors” — those that receive contracts directly from the government — has dropped by 36% in the last decade. … Upgrading the skills of both service members and the civilian workforce that supports the military is critical. … As Eisenhower recognized, America’s influence abroad depends on its strength at home. Revitalizing the defense-industrial base is essential not only for national security, but also for the preservation of peace around the world.