Pentagon Uses New Funding Paths to Encourage Small-Drone Production

The Pentagon has established multiple funding pathways and acquisition competitions to encourage drone development and increased production, according to the reported account. Army Materiel Command advanced manufacturing lead for small drones Jon Strzelec said the military is trying to stimulate demand and support development of a domestic supply chain.

Key details

• Performance Drone Works CEO James Slider said a sustained demand level could mean deliveries of 1,000 drones each month for one year.
• The Army is described as the largest single source of demand for small drones.
• The initiatives do not necessarily guarantee long-term purchase orders.

Performance Drone Works CEO James Slider cited 1,000 drones per month for a year as an example of sustained demand.

Why it matters

For US manufacturers, steady orders can help support production planning and domestic supply-chain development. The Pentagon’s competitions create opportunities to develop and produce drones, while the durability of demand remains a key question for industry and military participants.

What happens next

The Pentagon’s procurement efforts are intended to build demand and domestic production capacity. What level of sustained orders would help US drone makers expand production?