There's a school of thought that the U.S. doesn't need to do its own manufacturing.
Why make stuff in the U.S. if it can be imported more cheaply from abroad?
One answer is jobs.
But there's another big reason.
Manufacturing in America is a matter of national security.
The United States is at risk if potential enemies suddenly stop supplying parts for
weapons systems.
The big five defense contractors depend on technology and manufacturing know-how developed
by the civilian sector.
And the U.S. civilian manufacturing base is gradually eroding.
This is forcing the defense sector to look overseas at times for the parts it needs…
Free-trade agreements DO allow for purchases from close allies.
The Pentagon can also grant waivers from the "Buy American Act" when contractors can't
find what they need in the U.S..
But there’s a problem, the world’s biggest manufacturer is also an emerging military
rival – China.
Federal law prohibits the Pentagon from buying weapons or parts from China.
But that's getting tougher to avoid because China simply dominates the market for some
critical components.
Take printed circuit boards, which go into military systems from missiles to ships to
trucks.
A Defense Department report says China makes close to half of the world’s printed circuit
boards.
China is also slowly building strength in other electronics, including semiconductors.
And it's the largest producer of a chemical compound used in detonators
for over 200 kinds of munitions.
Without singling out China, the Pentagon warns that if key parts aren’t made in America,
the U.S. risks supply disruption, theft of its technology, or even sabotage.
The trouble is, buy-American laws can also make domestic manufacturers inefficient and
expensive by shielding them from competition.
and the U.S. already spends more on its military than the next eight countries combined.