Analysis & Reports

The Army's plant in Mesquite, Texas, has failed to produce any 155mm artillery projectiles since its opening in 2024, currently only manufacturing 56,000 shells per month against a target of 100,000. The Assistant Secretary of the Army expressed dissatisfaction with the production lag and indicated ongoing negotiations with General Dynamics Ordnance and Tactical Systems to address the issues. Concerns have been raised about the effectiveness of the contract and the future of the facility.

The Army expressed dissatisfaction with General Dynamics Ordnance and Tactical Systems (GD-OTS) regarding the management of the 155mm artillery production facility in Mesquite, Texas, which has yet to produce any shells since its opening in 2024. Currently, the Army is only able to manufacture 56,000 shells per month without GD-OTS's assistance. Ongoing negotiations aim to improve production capabilities and meet the target of 100,000 shells per month.

The Pentagon plans to allocate over $150 billion in reconciliation funds by September 30, 2026, focusing on defense production and modernization. Allen Control Systems in Austin, Texas, will triple its manufacturing capacity for counterdrone systems. Northrop Grumman has introduced its collaborative combat aircraft, Talon Blue, while the Air Force is actively testing Anduril's CCA with weapons.

The defense industry is currently scaling up production and integrating AI technologies to manage complex requirements and backlogs. Organizations in the U.S. and Europe are under pressure to increase output while facing challenges such as data quality and the need for effective change management. The drone market has emerged as a critical component of modern warfare, highlighting the urgency for rapid technological advancements in defense manufacturing.

The U.S. Air Force awarded Boeing a contract for the F-47 Next Generation Air Dominance (NGAD) stealth fighter on March 21, 2025. The aircraft will utilize the Pratt & Whitney XA103 engine, which enhances fuel efficiency and thrust. This development aims to ensure air superiority against emerging threats, particularly from China.

U.S. Army soldiers at Fort Stewart are training to operate drones under the Transformation in Contact initiative, reshaping armored warfare tactics. This program emphasizes the integration of drone technology into military operations, influenced by lessons from the conflict in Ukraine. Soldiers practice on a simulator before transitioning to real drone flights, marking a shift from traditional training methods.

U.S. Army soldiers at Fort Stewart are training to operate drones as part of the Transformation in Contact initiative, which emphasizes hands-on experimentation with new drone capabilities. This approach reflects lessons learned from the conflict in Ukraine, as the Army seeks to adapt its tactics and doctrine to incorporate advanced drone technology into armored operations.

China filed an application for 203,000 satellites, while SpaceX proposed a million-satellite network, leading to significant strain on the space supply chain. The US Defense Department is increasing its demand for satellites, which may impact its initiatives. Industry experts warn that companies might prioritize commercial contracts over military ones due to economic factors.

The U.S. Air Force is modernizing the F-22 Raptor to the 'Super' Raptor standard by 2026, investing $9 billion in upgrades including the AIM-260 Joint Advanced Tactical Missile and advanced IRST systems. This modernization aims to ensure air superiority against adversaries like China and Russia. The Rapid Raptor program enhances deployment capabilities, allowing the F-22 to be operational within 24 to 48 hours.

BAE Systems has secured a contract exceeding $500 million to provide additional M109A7 Paladin Self-Propelled Howitzers to the US Army.

BAE Systems recently delivered its 100,000th APKWS laser-guidance kit, enhancing precision strike capabilities for U.S. armed forces and allies. The kit transforms unguided 2.75-inch rockets into precision-guided munitions and is deployable from multiple platforms. BAE Systems has been producing these kits for over 12 years, continuously upgrading technology to meet evolving mission needs.

On February 18, 2026, the U.S. and Japan reaffirmed their military alliance during the Expanded Deterrence Dialogue in Washington D.C., committing to strengthen defense capabilities against regional threats. In response, China imposed export restrictions on 20 Japanese companies involved in military enhancement, aiming to curb Japan's rearmament efforts. This development highlights escalating military tensions in East Asia, with both nations adjusting their defense strategies.

Tanaka TakashiWed Feb 25 2026Loading...

The U.S. Air Force awarded a contract to Honeywell for the development of a new engine for its autonomous drone wingmen on February 23. The SkyShot 1600 engine will be adapted for use in the Air Force's Collaborative Combat Aircraft program, which includes unmanned systems designed to operate alongside human pilots. This initiative reflects ongoing advancements in military drone technology.

The U.S. Air Force awarded a contract to Honeywell for the development of a small engine for its autonomous drone wingmen on February 23. The SkyShot 1600 engine will be adapted for use in the Air Force's Collaborative Combat Aircraft program, which includes unmanned systems designed to operate alongside human pilots in various mission sets. The U.S. Navy is also pursuing similar drone technology.

Air Force test pilots successfully used artificial intelligence aboard the experimental X-62A Vista jet to evade a simulated incoming missile during a test in Aurora, Colorado. The AI autonomously conducted evasive maneuvers, demonstrating potential future applications of AI in combat scenarios. The project, named 'Have Remy', aims to enhance pilot training and address public concerns regarding AI in military operations.

Lockheed Martin tested AI-enhanced targeting capabilities on the F-35 fighter jet at Nellis Air Force Base in Nevada. This marked the first instance of a tactical AI model independently suggesting combat targets to pilots. The company plans to continue developing AI-driven decision-making models to improve target identification speed for pilots, emphasizing the importance of reprogramming AI for future sorties.

The U.S. military is currently gathering forces in the Middle East, preparing for potential airstrikes against Iran. Over 270 aircraft, including advanced fighters and bombers, are deployed, supported by two aircraft carrier strike groups. The U.S. plans to target Iranian military installations, while Iran is reinforcing its defenses in response to the escalating situation.

Global Military Products received a contract to deliver the Scorpion Light mobile mortar system mounted on the Polaris MRZR Alpha 6×6 for the U.S. Marine Corps on February 24, 2026. This system enhances mobility and fire support capabilities, allowing rapid deployment and repositioning on the battlefield. The contract is valued at $4.9 million and includes advanced targeting systems for efficient combat operations.

Lockheed Martin flight tested an AI-enhanced Combat Identification capability for the F-35 at Nellis Air Force Base on February 24, 2026. This demonstration, part of Project Overwatch, improved pilots' situational awareness and decision-making speed. The AI model resolved identification ambiguities among emitters, and real-time software updates were also deployed to U.S. Navy ships in the Red Sea to counter advanced threats.

Ursa Major unveiled its new hypersonic missile system, HAVOC, in Winter 2026. The missile, based on the Draper engine, is designed for flexibility in launch platforms and is expected to cost under $3 million per unit. HAVOC offers maneuverability and operates in the upper atmosphere, reducing thermal protection needs. Ursa Major aims to produce the majority of the missile in-house.