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As defense investment increases globally, uncertainty around US trade policies is driving some buyers to diversify vendors beyond the US. Aerospace Industries Association President and CEO Eric Fanning says demand for US systems remains strong despite some countries voicing frustration politically. "Their alternative is China," Fanning said of countries in Asia-Pacific. "And they want to counter that and not be dependent on China, not be under the thumb of China. And we still make the best stuff."
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The Pentagon is using the Golden Dome missile defense initiative as a model for faster, risk-tolerant defense procurement, aiming to attract private capital and new companies while emphasizing performance and innovation. Deputy Director Marcia Holmes highlighted at the Miami Space Summit that the initiative aligns with the Trump administration's acquisition reforms, aiming to integrate commercial technologies into a layered defense network.
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HII achieved a 14% productivity boost in 2025 and is targeting a 15% increase in 2026, according to CEO Christopher Kastner. The company also hired 6,600 new workers last year and plans to expand its workforce further. General Dynamics Electric Boat reported similar momentum with a 13% rise in submarine tonnage, highlighting industry-wide efficiency improvements despite persistent supply chain issues.
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The Pentagon recently announced the appointment of six senior officials to lead its newly restructured critical technology areas. Each appointee brings War Department or military experience to their respective technology domain, including applied AI, biomanufacturing, contested logistics, quantum and battlefield information dominance, scaled directed energy and scaled hypersonics. These leaders are tasked with accelerating the delivery of advanced capabilities to warfighters through focused, rapid technology sprints.
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The US Air Force has revised its contract strategy for supporting its ballistic missile systems, moving away from a single large contract model. Instead, the service will now conduct separate competitions for different categories of work under the ICBM Development, Operations, and Sustainment program, utilizing the OASIS+ professional services vehicle. Task orders will be issued for engineering and integrations, as well as program execution support, with additional plans to separately compete IT support requirements. This approach is designed to better manage the transition from the legacy Minuteman III system to the new Sentinel missile system.
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India is reportedly prepared to order as much as $80 billion worth of aircraft from Boeing following a trade agreement with the US, Commerce and Industry Minister Piyush Goyal has said. The deal, announced by President Donald Trump, includes reducing tariffs and potentially increasing US imports from India to $500 billion over five years.
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Embraer-CAE Training Services has placed its first order for a full-flight simulator specifically designed for Eve Air Mobility's air taxi, marking the debut of a dedicated simulator within its training network. The CAE 3000 simulator will support pilot instruction as Eve prepares for commercial operations, representing a key step in establishing specialized training infrastructure for the new generation of electric aircraft.
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The Defense Innovation Unit of the Pentagon has issued a solicitation for commercially derived sensors for hypersonic and ballistic missile tracking. The sensors should be affordable, scalable and capable of lasting five years in orbit or enduring the conditions of ground-based interceptors.
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The Government Accountability Office has suggested that Congress give the Pentagon more control over military branches' tech budgets by granting budget certification authority to the Office of the Under Secretary of Defense for Research and Engineering. The Pentagon has already taken steps to consolidate and accelerate technology efforts, such as prioritizing dual-use technology and pushing acquisition authority to the tactical level. The Senate's version of the 2026 National Defense Authorization Act includes a provision similar to the GAO's recommendation, while the House version is more cautious, requiring acquisition executives to report through their functional commands.
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