Pentagon Puts U.S. Industry on "Wartime Footing" with $500 Million Surge in Munitions Production

The Pentagon signs deals with Lockheed, BAE, and Honeywell to quadruple missile production as the U.S. puts its industry on a wartime footing for the Iran conflict.

By: AXL Media

Published: Mar 26, 2026, 6:31 AM EDT

Source: Information for this report was sourced from Asharq Al-Awsat and Reuters.

A Strategic Shift to "Wartime Footing"

The Pentagon announced on Wednesday a series of landmark agreements designed to dramatically accelerate the American defense industrial base. Following three weeks of high-intensity conflict between the U.S.-Israeli coalition and Iran, the Department of Defense is moving to replenish stockpiles exhausted by the massive volume of strikes in the Middle East. This "wartime footing" is characterized by a direct intervention in production schedules, moving away from standard procurement cycles to meet the urgent operational demands of a multi-front regional war.

Quadrupling THAAD and Precision Strike Output

Central to the new agreements is a massive scale-up of the Terminal High Altitude Area Defense (THAAD) system. BAE Systems and Lockheed Martin have committed to quadrupling the production of seekers for THAAD interceptors, which are vital for neutralizing the Iranian ballistic missiles currently targeting central Israel and the Gulf states. Additionally, Lockheed Martin will accelerate the manufacturing of its Precision Strike Missile (PrSM), a long-range weapon intended to provide the U.S. Army with deep-strike capabilities against hardened Iranian infrastructure and mobile launch sites.

Honeywell’s $500 Million Multi-Year Surge

Honeywell Aerospace has entered into a $500 million multi-year investment framework to "surge production" of critical components. This includes navigation systems, missile steering actuators, and electronic warfare products that are essential across nearly every U.S. military platform. Honeywell CEO Jim Currier stated the company is ready to meet the "urgent demand," signaling a departure from the "just-in-time" supply chain model that has previously left the U.S. vulnerable during prolonged conflicts.