Defense manufacturing is entering a sustained growth cycle supported by record-breaking global spending and unprecedented industrial mobilization. The pace of orders, the scale of programs, and the complexity of execution are increasing all at once. Long-term contracts tied to modernization, rearmament, and strategic deterrence are reshaping production priorities across the supply base.
From my perspective, this shift is creating both growth opportunities and operational pressures for aerospace and defense (A&D) leaders. Disciplined execution and connected data systems are now business-critical to meeting commitments without sacrificing quality or compliance.
Defense Manufacturing Continues to Accelerate
Global defense spending is at its highest sustained level in decades, driven by modernization programs, rearmament in Europe, and increased procurement in Asia. This increase indicates a structural shift in military investment priorities. Defense budgets and procurement are rising across major markets, and prime contractors are reporting record order backlogs.
Worldwide military expenditure reached approximately $2.44 trillion in 2023 and rose again to $2.72 trillion in 2024, the sharpest year-over-year increase since the late 1980s. The European Investment Bank has tripled its planned defense-sector lending to €3 billion (US$3.43 billion) to accelerate expansion of the region’s defense industrial base. Australia’s AUKUS commitment alone totals about $240 billion over three decades, underscoring the scale and duration of current defense orders.
While backlogs for commercial aviation remain at record levels, momentum has softened. Boeing’s 2024 net orders fell sharply, and Airbus deliveries are down year-to-date in mid-2025. Relative growth has shifted toward defense programs at many diversified suppliers.
While past decades have seen high spending during periods such as the Cold War, the current cycle stands out for its combination of record levels, multi-year momentum, and broad participation across allied nations.
Growth Brings Opportunity and Risk
Growth in defense orders is creating opportunities across the A&D supply base. Large multilateral programs such as the Future Combat Air System (FCAS) and the AUKUS submarine initiative are structured for multi-decade execution, making them stable sources of work for the prime contractors and suppliers that can meet their demands. However, these programs can extend timelines and introduce evolving requirements and strict regulatory oversight that make delivery complex.
Even smaller defense projects can be demanding. The shift toward high-technology platforms and networked systems shortens development cycles and increases the number of specialized contributors. Along with that comes a heightened need to protect intellectual property and maintain cybersecurity across multiple security regimes.
From where I stand, working alongside customers, program requirements in this sector are rarely static. Technology refresh cycles, mid-stream redesigns, and re-certification events can ripple through the supply chain. Without connected systems, this can create rework that leads to delays and strained relationships. And with partners spread across multiple countries, each subject to their own compliance rules and reporting requirements, even a slight misalignment can cause bottlenecks that affect the entire program.
Between the number of suppliers and geographies involved and the pace and scale of current defense expansion, operational risk is high for manufacturers. Three significant areas of exposure in this environment include:
- Requirements management: Specifications evolve as threats and technologies change, requiring rapid integration of updates into production without disrupting schedules.
- Traceability: Every part, process, and quality check must be linked to verifiable data to satisfy contractual and regulatory audits.
- Cross-partner alignment: Disconnected or manual systems introduce latency and errors that make it challenging to maintain a consistent operational baseline across partners.
Data Discipline Drives Excellence in Mission Critical Environments
As I see it, meeting the demands of this growth cycle requires leaders to raise the level of execution discipline and focus on how data flows across their operations. Updating engineering and production information quickly and accurately keeps requirements under control. Reliable traceability creates a verifiable chain of information that reduces audit costs, strengthens compliance, and resolves quality issues faster. And when partners all operate from the same data set, they speed up decisions, reduce errors, and lower risk across the program. This kind of discipline is not theoretical. I see our customers using it every day to stay ahead of problems and build confidence with their stakeholders.
Getting Ready for Sustainable Growth
I believe now is the time for defense manufacturing executives to equip their organizations to manage these demands at scale. Companies that put the right systems in place before the next ramp-up will be in the best position to deliver consistently under demanding conditions.
Solumina by iBase-t supports this readiness by standardizing work across sites, automating traceability, and embedding compliance into daily operations. These capabilities speed up the adoption of engineering changes and give leaders the visibility to address risks before they affect delivery.
What excites me most is seeing how our customers use this foundation to strengthen trust and resilience. By focusing on execution discipline, I believe we can help the industry meet rising demand while keeping quality, compliance, and collaboration at the center. That is how we capture the long-term benefits of this new era of sustained defense manufacturing growth.
