The Defense Innovation Unit (DIU) announced on Thursday the launch of a new marketplace designed to provide speed, scale and security to the U.S. defense industrial base. The marketplace aims to connect technology companies with companies with certified advanced manufacturing capabilities. Last year, DIU Director Doug Beck announced the Blue Manufacturing Marketplace to address barriers to leveraging advanced manufacturing capabilities such as digital engineering, 3D printing and automation. Now, DIU is accepting bids from suppliers with specific expertise in six areas, including automated metalworking, composite or ceramic additive manufacturing and 3D printed tooling for part production.
A New Model: Offering Scalable Production and Advanced Technologies to the Defense Industry
Beck said the new marketplace is an initiative designed to help small defense companies collaborate with advanced manufacturing firms. DIU’s role in the marketplace is to secure supply chains and create an environment for companies to find each other. “The key is to help these companies connect and collaborate with each other, and to help them scale,” Beck said.
Pentagon's Efforts to Increase Manufacturing Capacity
The Pentagon has been calling for rapid manufacturing and scalability over the past few years, both to replenish depleted weapons stockpiles and to field low-cost systems and technologies en masse. The DIU marketplace is seen as a key step toward meeting those needs. The Pentagon’s 2024 National Defense Industrial Strategy calls for increased adoption of advanced manufacturing and automation across the defense industrial base, noting that these technologies will not only increase manufacturing capacity but also make processes more efficient.
“Many elements of traditional defense industrial bases have not yet adopted advanced manufacturing technologies, which has a direct impact on production times and lifecycle costs,” the Defense Department report said. This poses a major obstacle to achieving efficiency in production processes and faster lead times.
DIU's Marketplace and a New Direction in the Defense Industry
Beck noted that the Blue Manufacturing Marketplace is just one piece of the Pentagon’s broader effort to better leverage advanced manufacturing across the defense industrial base. But he said the initiative has the potential to be a game-changer. He predicted that five years from now, the marketplace could be one of DIU’s most significant achievements, emphasizing that the new system could have major long-term impacts.
Overcoming Supply Chain Obstacles
Travis Demeester, DIU’s marketplace leader, said he spent much of the past year talking to companies in the defense sector to understand the hurdles manufacturing companies face. Many companies noted that their supply chains were not funded or secured by U.S. competitors and expressed concerns about lengthy due diligence processes between companies. Demeester said DIU already provides due diligence for companies entering the defense industry and is well-positioned to help connect them.
Future Growth and Agile Approach
Demeester noted that the marketplace is currently small and that DIU is not yet equipped with the necessary resources. However, in the future, demands such as certification and qualification of additively manufactured parts are expected to increase. This demand is a result of the military services turning to non-traditional suppliers. Demeester also predicts that in the future, manufacturing companies with expertise in specific technology areas such as hypersonics or autonomy will be needed.
A New Direction in the Defense Industry and the Power of Innovation
The Defense Innovation Unit’s Blue Manufacturing Marketplace looks set to play a key role in meeting the need for speed, scale, and security in the U.S. defense industrial base. Adopting advanced manufacturing techniques, securing supply chains, and enabling companies to collaborate with each other will be critical to the future of the defense industry. This new marketplace will be noted as a significant step toward transforming the defense industry and providing new manufacturing capabilities.
