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

The war against Iran exposed pressure on US interceptor stockpiles, prompting weapons giants to accelerate 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 first flight is only in 2028. The Pentagon welcomes new small companies.

The war against Iran exposed heavy pressure on US interceptor stockpiles, and American weapons giants are accelerating development of cheaper, faster missiles. 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 missiles with advanced technological components, but their production takes years and each is significantly more expensive compared to the cheap drones Iran operates, which cost an estimated $30,000 each. To compete on price, Boeing is developing an "ultra-low-cost" guidance sensor based on commercial components, expected to account for only about 10% of missile cost, down from 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 first flight is expected only in early 2028. The Pentagon welcomes the entry of new, smaller companies into the industry.