Despite claims that the U.S. conflict with Iran is unique, the current situation draws parallels to December 1941. After Pearl Harbor, America’s industrial capabilities, including private sector mobilization, were crucial in securing victory. Automakers shifted to tank production, electronics firms developed radar systems, and chemical plants fueled the war effort, not only ensuring victory but also reshaping the global order and strengthening America’s economy.

Rebuilding our industrial foundation today goes beyond border security. It’s about reviving America’s economic backbone, creating jobs in high-tech manufacturing, fostering innovation, and re-establishing our manufacturing prowess. Recent conflict with Iran has highlighted a critical security gap: the U.S. lacks control over its arsenal, including foundational components and raw materials needed for sustained conflict. While Washington discusses regional tensions, the urgent need for industrial infrastructure to support high-intensity warfare is overlooked.

We must change defense production strategies. Shift from just-in-time logistics to industrial resilience and redundancy. When a Patriot missile intercepts a threat, it reveals a fragile supply chain behind the miracle. Components such as Virginia-written guidance software, domestic propellant chemicals, imported composite precursors, and adversary-processed magnets form part of this chain.

The issue isn’t strategic will or tactical skill; it’s physical capacity. Current facilities don’t match the threat level’s demands. Prioritizing low costs over surge capacity has weakened our defense depth. The maritime domain exemplifies the deficit. A mature fleet of autonomous naval vessels could secure the Strait of Hormuz, offering a cost-effective deterrent and reminiscent of North Atlantic convoys during World War II.

Our naval strategy relies on expensive platforms that are challenging to replace in high-threat environments. The Autonomous Warfare Group must bridge software and hardware, ensuring scalable, modular, and resilient systems against jamming and spoofing tactics. Traditional appropriations won’t suffice. Success hinges on state and private sector collaboration, guided by robust economic tools.

The Economic Defense Unit and Office of Strategic Capital must drive industrial health and implement comprehensive strategies. They should expand their toolkit, including direct equity investments in critical suppliers. Government ownership stakes provide patient capital for operational scaling. Rigorous accountability in acquisitions and the ability to cancel non-performing contracts are crucial for real-world demands.

Three support pillars are needed for industry to prioritize national needs:

• Fiscal and Security Protections: Offer tax incentives for domestic manufacturing investments, compensating higher operational costs while shielding companies from foreign threats like predatory pricing and espionage.
• Political Stability: Industry needs consistent and fair treatment from Congress and policymakers. Stop demonizing investors and defense contractors to foster a collaborative environment and secure institutional investment.
• Capital Certainty: Guarantee volume through multi-year procurement commitments to instill investor confidence and enable rapid production scaling.

Economic sovereignty depends on our manufacturing capabilities. Inability to produce munitions or drone batteries compromises defense control. Rebuilding infrastructure and streamlining procurement, upholding performance standards, and incentivizing private capital are keys to defense rejuvenation. America’s sovereignty and conflict deterrence rely on leveraging the entire economic power today.

Paul Hayden Miller is a defense and technology investor.

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