Strengthening America's Defense Industrial Base, Workforce and Production Lines to Deter War

Defense Posture and Global ThreatsHouse Armed Services · 2025-02-26 · 119th Congress
The House Armed Services Committee held its second hearing of the 119th Congress to examine the health of the U.S. Begins at 0:15:30
Transcript
Highlights

Title

Assessing the state of America's defense industrial base

Purpose

The House Armed Services Committee held its second hearing of the 119th Congress to examine the health of the U.S. defense industrial base — including manufacturing capacity, workforce shortages, shipbuilding, munitions production, and acquisition reform — and how to strengthen it to deter potential conflict. Witnesses Eric Fanning (Aerospace Industries Association), David Norquist (National Defense Industrial Association), and Matthew Paxton (Shipbuilders Council of America) testified on regulatory burden, supply chain fragility, and the workforce pipeline. Members also pressed witnesses on the effects of continuing resolutions, DOGE-driven Pentagon staff cuts, and tariffs. Begins at0:15:30

Who spoke

Chairman Mike Rogers (R-AL)0:15:30: Said the industrial base has atrophied over 30 years, citing consolidated firms, narrowed supply chains, and lost war games due to inability to resupply munitions0:16:00; called for expanded multi-year contracts, cutting regulatory burdens, and ending dependency on China for critical minerals0:16:300:17:00.

Ranking Member Adam Smith (D-WA)0:18:02: Argued the U.S. cannot afford to build against every perceived threat and needs a realistic strategy prioritizing choices0:19:320:20:02; criticized DOGE's approach at the Pentagon as firing staff based on tenure and loyalty rather than merit0:21:030:21:34, and questioned clarity around proposed 8% budget cuts0:22:04.

Eric Fanning, AIA President/CEO0:23:35: Said it takes nearly 300 days on average to award prime contracts over $100 million, discouraging commercial firms from working with DOD0:26:07; noted 2024 foreign arms sales exceeded all DOD procurement and RDT&E combined0:27:07; later said 40% of small businesses have stopped working with DOD over the past decade1:16:10.

David Norquist, NDIA President/CEO0:29:09: Submitted NDIA's "Vital Signs 2025" report for the record0:29:39; said regulations like CMMC and IP/data rights requirements deter new entrants and suppress innovation0:31:41; explained munitions production is destabilized by unstable demand signals and CRs0:39:45.

Matthew Paxton, Shipbuilders Council of America President0:33:12: Said shipyard physical capacity is not the constraint — demand signal volatility, sequestration, and oversight are0:33:42; cited a 16-to-1 worker-to-government-oversight ratio at one shipyard versus 2-to-1 at a smaller one as evidence of bureaucratic burden0:35:43; warned a year-long CR is "agonizing" to industry0:37:14.

Rep. Joe Wilson (R-SC)0:48:20: Asked Paxton about last-minute Navy design changes causing cost overruns and about workforce delays at Guam shipyard0:49:210:51:22.

Rep. John Garamendi (D-CA)0:54:30: Promoted the Ships for America Act, questioned witnesses on its value, and asked all three to report whether their largest member companies use free cash flow for stock buybacks versus workforce training0:58:020:58:32.

Rep. Rob Wittman (R-VA)0:59:33: Said China has 232 times U.S. shipbuilding capacity and the U.S. must build 2.33 Virginia-class submarines a year; called workforce "the top three issues"1:00:031:01:04.

Rep. Donald Norcross (D-NJ)1:05:06: Pressed witnesses on how to build workforce surge capacity, comparing it to construction-industry hiring halls1:06:36.

Rep. Mark Green / "Dr. DesJarlais" (R-TN)1:10:38: Asked about acquisition reform, the ~300-day contract award delay's real-world effects, and Ukraine rare-earth minerals deal implications1:10:381:12:38; noted 70% of 1990s DOD suppliers have merged or exited1:13:39.

Rep. Seth Moulton (D-MA)1:14:39: Criticized the F-35 program for 24 years without an on-time delivery and said Lockheed won't relinquish software rights, blocking competition1:15:101:15:40; pressed Paxton on why ship repair isn't allowed at allied yards like South Korea and Japan1:18:11.

Rep. Rudy Yakym / "Mesmer" (R-IN)1:20:12: Asked about the cost of vacating DOD spectrum allocations (lower 3 GHz, 7/8 GHz bands), citing risk to ballistic missile early-warning systems1:20:421:23:43.

Rep. Salud Carbajal (D-CA)1:25:14: Raised R&D tax amortization changes hurting small businesses versus China's 200% deduction1:25:44; asked about stem/skilled-workforce pipeline programs1:26:45.

Rep. Rob Wittman's colleague "Mr. Maguire" (R-VA)1:29:46: Cited China's 400+ ship navy versus the U.S. 7th Fleet's 50-70 ships and praised the Danville, VA advanced training center1:30:471:32:47.

Rep. Bill Keating (D-MA)1:35:18: Criticized the administration's posture toward Russia and Ukraine, warning allies will build independent industrial capacity, excluding the U.S.1:36:191:36:49.

Rep. Abraham Hamadeh (R-AZ)1:37:20: Warned Boeing's Apache production line in Arizona risks shutdown without a minimum order of 12 helicopters, threatening 5,000 jobs1:38:51; pressed on foreign military sales delays1:39:21.

Rep. Chrissy Houlahan (D-PA)1:42:53: Questioned Norquist on just-in-time manufacturing risk and stockpiling strategy1:43:23; raised concerns about DOGE layoffs of provisional employees and diversity in the STEM workforce1:45:541:46:24.

Rep. James Moylan (R-Guam)1:47:55: Asked about restoring the closed 1997 Guam ship repair facility and Guam's strategic role in the Indo-Pacific1:49:261:50:59.

Rep. Sara Jacobs (D-CA)1:53:00: Linked immigration restriction to workforce shortfalls1:53:30; pressed on why munitions production still lags despite clear demand signals for items like 155mm rounds and Patriots1:54:30; questioned Paxton on cost overruns in the Shipyard Infrastructure Optimization Program (SIOP)1:56:31.

Rep. Jen Kiggans (R-VA)1:58:02: Asked Fanning to detail the impact of a full-year CR, noting Hampton Roads shipyards losing staff and pursuing modular-build work with Huntington Ingalls1:58:332:00:34.

Rep. Pat Ryan (D-NY)2:03:36: Noted the top five primes earned over $200 billion in defense revenue, ~$130 billion from DOD contracts, and pressed each witness to name a specific program to cut, without a direct answer given2:04:062:05:37; raised concerns about legacy software programs like the Army's C2 system going unused2:07:08.

Rep. Maggie Goodlander (D-NH)2:09:09: Asked about SBIR/STTR programs and the National Defense Industrial Strategy implementation2:09:392:12:09.

Rep. Cory Mills (R-FL)2:14:41: Focused on critical minerals supply chain transparency, Taiwan semiconductor dependence, and Houthi disruption of Red Sea trade2:15:112:17:12.

Rep. Brad Knott / "North Carolina" (R-NC)2:19:44: Asked about recruiting shipbuilding workforce in rural North Carolina near Newport News2:20:442:22:15.

Rep. Eric Sorensen (D-IL)2:24:46: Highlighted the Rock Island Arsenal and its additive manufacturing center, asking about organic industrial base investment2:25:472:27:18.

Rep. Clay Higgins (R-LA)2:30:50: Focused on small shipyards' vulnerability to work stoppages and entered a February 24 letter into the record on the topic2:31:202:34:22.

Rep. Wesley Hunt / "Vinman" (R-TX)2:35:56: Asked Fanning about applying Special Operations rapid-acquisition authorities more broadly and pressed Norquist on artillery/munitions production shortfalls2:38:582:40:29.

Rep. Jeff Crank (R-CO)2:41:30: Asked about inflation's impact on small contractors' fixed-price contracts and CMMC compliance costs2:41:302:44:02.

Rep. Bob Onder / "Missouri" (R-MO)2:44:39: Asked about supply chain choke points and NATO ally cooperation on production2:45:332:49:05.

Rep. Derek Schmidt / "SOS" (R-KS)2:50:05: Asked about skilled-labor workforce recruitment and retention beyond engineers, i.e., welders and tradespeople2:50:352:53:39.

Rep. Nick Begich / "Tran" (R-AK)2:55:09: Asked about China supply chain vulnerabilities (batteries, rare earths, microelectronics) and workforce clearance bottlenecks2:55:402:58:11.

Rep. Kelly Morrison / "Hirth" (D-MN)2:59:43: Asked witnesses about the potential impact of new administration tariffs on raw materials and supply chains3:00:43.

Rep. Austin Scott (R-GA)3:03:45: Raised concerns about U.S. reliance on Russian rockets historically, block-buy purchasing inefficiency for ships, and F-35 data rights ownership3:04:153:06:47.

Rep. Ro Khanna (D-CA)3:08:48: Discussed the bipartisan SHIPS Act, noted China builds ~1,700 ships/year versus five in the U.S., and asked whether federal financing alone could close the gap3:08:483:11:19.

Rep. Burgess Owens / "Van Orton" (R-UT)3:12:51: Referenced WWII Liberty ship production pace and pressed witnesses on whether continuing resolutions harm national security for political reasons3:13:223:15:53.

Rep. Pat Fallon (R-TX)3:18:24: Asked all three witnesses for specific acquisition reform recommendations to accelerate innovation and efficiency3:19:25.

Key moments

Fanning said it takes nearly 300 days on average to award prime contracts over $100 million, a strong disincentive for commercial companies and small businesses to work with DOD0:26:07.

Paxton described a 16-to-1 worker-to-government-oversight ratio at one shipyard versus 2-to-1 at a smaller one, calling it "simply not efficient"0:35:43.

Wittman stated China has 232 times the U.S. shipbuilding capacity and that the U.S. must build 2.33 Virginia-class submarines a year to meet requirements, calling reconstitution's top three issues "workforce, workforce, and workforce"1:00:331:01:04.

Moulton said Lockheed Martin refuses to give up software rights on the F-35 after 24 years and no on-time deliveries, blocking competition in software development1:15:40.

Norquist said the U.S. has had over 1,900 days of continuing resolutions in the last 16 years — equivalent to five full years — each telling industry and DOD to revert to the prior year's plan2:02:35.

Ryan asked all three witnesses to name one specific program to cut given DOGE's stated focus on waste; none provided a specific program, with Fanning offering to share a $5 billion reduction report instead2:05:072:06:07.

Hamadeh warned Boeing's Apache production line in Arizona risks shutdown without a DOD commitment to a minimum order of about 12 helicopters, threatening 5,000 Phoenix-area jobs1:38:51.

Khanna noted China builds roughly 1,700 commercial ships a year versus about five in the U.S.; Paxton said the U.S. would "never catch up to China" but could build a 250-ship strategic fleet via the SHIPS Act3:09:193:10:19.

Garamendi asked all three witnesses to report whether their largest member companies use free cash flow for stock buybacks or workforce training, calling it a "major issue"0:58:32.

Norquist said in the last three years, 28% of member companies lost a critical supplier and 30% lost a sole-source supplier, underscoring supply chain fragility2:16:42.

Metadata

CommitteeHouse Armed Services
Chamber / CongressHouse · 119th Congress
Date2025-02-26
TypeHearing
Witnesses
The Honorable Eric Fanning — President and Chief Executive Officer, Aerospace Industries Association
The Honorable David Norquist — President and Chief Executive Officer, National Defense Industrial Association
Mr. Matthew Paxton — President, Shipbuilders Council of America
Videoyoutube
Transcript377 caption blocks · 33,490 words · 3:27:48 runtime
EventCongress.gov 117953