FISCAL YEAR 2020 INDUSTRIAL CAPABILITIES REPORT TO CONGRESS TO REPORT CAPABILITIES INDUSTRIAL 2020 YEAR FISCAL FISCAL YEAR 2020 INDUSTRIAL CAPABILITIES REPORT TO CONGRESS The estimated cost of this report or study for the Department of PREPARED BY: Defense is approximately $159,000 in Fiscal Years 2020–2021. This OSD A&S INDUSTRIAL POLICY includes $24,000 in expenses and $134,000 in DoD labor.Generated JANUARY 2021 on 2020Dec23, RefID: C-C691E6A TABLE OF CONTENTS 1. Foreword: A 21st Century Defense Industrial Strategy for America .....................................................7 2. Congressional Requirement ...........................................................................................................................21 3. Introduction .......................................................................................................................................................25 Assess .............................................................................................................................................................27 Invest ..............................................................................................................................................................27 Protect .............................................................................................................................................................28 Promote ..........................................................................................................................................................29 4. Industrial Base Council ....................................................................................................................................31 5. COVID-19 Response Highlight .........................................................................................................................35 6. Defense Industry Outlook ..............................................................................................................................39 Characteristics of the Market/Overview ....................................................................................................40 The Big Six Defense Suppliers .....................................................................................................................40 Research & Development Spending ...........................................................................................................44 Global Military Spending ..............................................................................................................................46 7. Sector Assessments ..........................................................................................................................................49 Introduction ...................................................................................................................................................50 Aircraft ............................................................................................................................................................52 Chemical, Biological, Radiological, and Nuclear ........................................................................................59 Cybersecurity for Manufacturing ................................................................................................................62 Electronics ......................................................................................................................................................65 Ground Systems ............................................................................................................................................71 Machine Tools ................................................................................................................................................75 Materials .........................................................................................................................................................80 INDUSTRIAL CAPABILITIES REPORT TO CONGRESS | 2020 ANNUAL REPORT 3 Missiles and Munitions .................................................................................................................................85 Nucler Matter Warheads ..............................................................................................................................88 Organic Defense Industrial Base .................................................................................................................90 Radar and Electronic Warfare ......................................................................................................................94 Shipbuilding ...................................................................................................................................................97 Software Engineering .................................................................................................................................101 Soldier Systems ...........................................................................................................................................106 Space ............................................................................................................................................................109 Workforce ..................................................................................................................................................... 112 8. Critical and Emerging Technologies ........................................................................................................... 115 Introduction ................................................................................................................................................. 116 Biotechnology .............................................................................................................................................. 117 Fully Networked Command, Control, and Communications ................................................................ 119 Hypersonics .................................................................................................................................................121 Microelectronics ..........................................................................................................................................123 Machine Learning/Artificial Intelligence ...................................................................................................125 Quantum ......................................................................................................................................................127 Directed Energy ...........................................................................................................................................130 5G .................................................................................................................................................................133 Autonomy .....................................................................................................................................................136 Cyber ............................................................................................................................................................137 4 INDUSTRIAL CAPABILITIES REPORT TO CONGRESS | 2020 ANNUAL REPORT 9. Supporting Actions and Authorities ...........................................................................................................139 Defense Priorities and Allocations System ..............................................................................................140 Defense Production Act Title III .................................................................................................................142 Committee on Foreign Investment in the United States .......................................................................144 Office of Small Business Programs ...........................................................................................................146 Industrial Base Analysis and Sustainment ..............................................................................................148 Warstopper Program ..................................................................................................................................150 Small Business Innovation Research & Small Business Technology Transfer ....................................152 Rapid Innovation Fund ...............................................................................................................................154 Manufacturing Technology Program ........................................................................................................156 Hart-Scott-Rodino ........................................................................................................................................158 Trusted Capital .............................................................................................................................................160 10. Appendix .........................................................................................................................................................163 Appendix A: Industrial Base Map ..............................................................................................................164 Appendix B: Industrial Base Studies and Assessments .........................................................................165