Workforce Needs
National Defense Strategy
2026 Overview
The 2026 National Defense Strategy (NDS), released in January 2026, is the Department of Defense’s top-level plan for how the United States addresses global threats, works with allies, and invests in the people, technology, and industrial capacity the military needs. For workforce and economic development professionals, the NDS matters because it sets the direction that later shows up in funding opportunities, defense contracts, and long-term demand for skilled workers in your community.
The NDS emphasizes four key priorities:
Defending the U.S. homeland.
Secure America’s borders, skies, and maritime approaches, including countering unmanned aerial threats, maintaining nuclear deterrence, and defending U.S. interests throughout the Western Hemisphere.
Deterring China in the Indo-Pacific.
Maintain a favorable balance of military power so that no nation can dominate the world’s largest and most dynamic market area.
Increasing burden sharing with allies and partners.
Allies take on a greater share of their own defense, including meeting a new global standard of 5% of GDP on total security spending
“Supercharging” the Defense Industrial Base.
Rebuild and expand America’s ability to manufacture what the military needs — at speed, at scale, and on U.S. soil. The strategy calls this a “once-in-a-century revival of American industry.”
That fourth priority is where workforce and economic development professionals have the most direct stake. The NDS explicitly calls for re-shoring defense production, expanding manufacturing capacity, and growing the workforce to support it.
Rebuilding the Aresenal, and What it Takes
The 2026 NDS places special emphasis on industrial readiness — the ability to produce what the military needs today while scaling up rapidly in a crisis. That includes:
- Reinvesting in U.S. defense production and building out capacity
- Empowering innovators and adopting new technology, including artificial intelligence
- Clearing away outdated regulations that slow down procurement
- Leveraging allied and partner production alongside domestic manufacturing
The strategy also underscores that alliances and partnerships remain a U.S. strength. Allied nations are increasing their defense spending and production, which creates additional demand for shared supply chains and skilled workers.
This has direct implications for where manufacturing occurs, how supply chains are structured, and what types of skills are needed at the local level.
Why this matters to local workforce development efforts
Drives Investments in Skills Training and Education Programs
The NDS’s focus on rebuilding the defense industrial base is already generating targeted funding for upskilling and reskilling workers. The defense R&D budget is increasing by $21 billion this year. Procurement rules are being simplified so that smaller manufacturers — the ones in your community — face fewer barriers to winning defense work. For local systems, this means growing demand for career pathways, technical programs, and apprenticeships tied to defense manufacturing needs.
Boosts Local Job Creation Through Defense Contracts and Expansion
By prioritizing domestic production and re-shoring strategic industries, the NDS is driving economic activity in regions with defense suppliers, manufacturers, or military facilities. The Pentagon has already eliminated 31 outdated procurement regulations, with more cuts planned throughout 2026, making it easier for small and mid-sized companies to compete for defense contracts. This generates employment in manufacturing, maintenance, logistics, and related fields at the community level.
Addresses the Workforce Gap as a National Security Priority
The NDS treats the defense manufacturing workforce shortage as a direct constraint on military readiness. Defense Industrial Base employment has dropped 63.5% since 1985. Submarine production alone needs nearly 100,000 skilled workers over the next decade. Many defense manufacturing jobs require security clearances that take 6 to 18 months to process, which means the hiring pipeline needs to start now. Local workforce and economic development organizations are essential to closing this gap through outreach, training, career awareness, and access to high-quality jobs.
You can use the NDS to:
- Map your region’s defense manufacturing footprint and identify local employers in the defense supply chain using Manufacturing Momentum’s data tools
- Align training programs with the Department of Defense’s 14 Critical Technology Areas, from advanced materials to microelectronics
- Connect with your state’s MEP center to learn which manufacturers are entering or expanding in defense work and what skills they need
- Build security clearance timelines into career pathways so participants understand the process before they start
- Strengthen funding proposals by referencing the NDS to signal alignment with national security priorities
- Target veteran and transitioning military talent through SkillBridge and military-to-civilian skills translation tools
