"Adapt or Die": Stockpiles Dwindle and the Pentagon Demands a Revolution in the Arms Industry

The war against Iran exposed pressure on US interceptor stockpiles, and arms giants are accelerating development of cheaper missiles. Boeing is developing a low-cost guidance sensor, and Lockheed Martin announced a discounted version of its interceptor costing $2 million, but the maiden flight is only in 2028. The Pentagon welcomes new small companies.

The war against Iran exposed heavy pressure on US interceptor stockpiles, and American arms giants are accelerating development of cheaper and faster missiles. The major manufacturers are redesigning engineering systems and production processes to offer alternatives to the "exotic" missiles, which are complex, slow to produce, and exorbitantly expensive, with costs potentially exceeding $4 million per unit. Representatives from Boeing, Lockheed Martin, Northrop Grumman, and Raytheon presented their plans at the Missile Defense and Space Conference held this week in Huntsville, Alabama. For decades, the defense industry loaded advanced technological components onto missiles, but their production takes years and each is significantly more expensive compared to the cheap drones Iran operates, costing an estimated $30,000 only. To compete on price, Boeing is developing an "ultra-low-cost" guidance sensor based on commercial components, expected to be only about 10% of the missile's cost, compared to 30% today. Lockheed Martin announced a cheaper version of its interceptor costing about $2 million, half the price of the most advanced interceptor, but the maiden flight is expected only in early 2028. The Pentagon welcomes the entry of new, smaller companies into the industry.