Operations are moving faster than the defense industrial base was built to handle. In just the first days of Operation Epic Fury, U.S. forces burned through billions in precision weapons. That pace has forced an immediate conversation in Washington and across the major primes. Production lines that once planned for steady replenishment are now being pushed toward surge mode. 

Today’s brief looks at what that shift really means for munitions production, the rise of mass drone warfare, and where the next wave of defense contracts is likely to appear.

The conflict in the Middle East has moved faster than many anticipated.

Since late February, Operation Epic Fury has seen U.S. forces strike thousands of targets across Iran. The opening days alone consumed billions in precision munitions.

Reports indicate the first two days saw the drawdown of roughly $5.6 billion worth of advanced weapons, from cruise missiles to air defense interceptors.

That reality brought defense leaders straight to the White House last week. President Trump sat down with CEOs from Lockheed Martin, RTX, Boeing, Northrop Grumman, and several others.

The message was direct: ramp up now. The companies agreed to work toward quadrupling output of high-end “exquisite” systems like Tomahawks, AMRAAMs, and THAAD interceptors.

Many of these lines were already expanding under prior multiyear agreements. But current operations have added real urgency. Congress is now eyeing a sizable supplemental funding package to rebuild stocks.

Advanced munitions deliver unmatched precision. Yet their consumption rate in sustained operations quickly strains even large inventories. Ukraine and now Iran have clearly shown the limits.

The Pentagon is responding with a smart dual approach. While pushing exquisite production higher, it is also accelerating the Drone Dominance program. The department is set to award contracts for 30,000 low-cost one-way attack drones in the coming days, with deliveries starting soon after.

Contractors face both opportunity and pressure to deliver at speed. Supply chain bottlenecks and workforce gaps could become real constraints.

For government leaders, the focus turns to rapid funding decisions and long-term industrial base strength. Tech observers see validation of the shift toward mixing expensive precision tools with affordable, attritable systems.

To stay ahead in this environment, consider these actions:

The defense sector is entering a period of intense activity. Those who move decisively will be best positioned as requirements evolve.

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The Pentagon is moving with real speed on its new Drone Dominance program.

Just weeks after completing the first Gauntlet competition, officials are placing initial orders for 30,000 low-cost one-way attack drones. These systems, priced around $5,000 each in this opening phase, will begin reaching military units over the next five months.

This marks only the start of a structured four-phase effort.

Each phase features its own Gauntlet evaluation, where military operators test and score competing drones in realistic scenarios. The program’s clear goal is aggressive price compression, driving unit costs from today’s $5,000 range down below $2,000 as production volumes increase and vendors improve efficiency.

Both traditional defense primes and smaller, agile manufacturers are rapidly scaling production lines. The first Gauntlet drew in 25 competing vendors, showing how the Pentagon is deliberately broadening the industrial base beyond the usual suspects.

What makes this significant is the shift it represents. After years of relying almost exclusively on expensive precision munitions, the military is now investing heavily in attritable mass. The combat lessons from recent operations have made this change urgent.

Looking ahead, the forecast is clear. By late 2027, the Army expects every infantry squad to have organic one-way attack drones as standard equipment.

Overall, analysts project that 40 to 50 percent of future munitions spending could move toward these low-cost, attritable systems over the next few years.

Contractors who successfully lock in positions through Phases 2, 3, and 4 will likely dominate this emerging market for years to come. Those who hesitate risk watching from the sidelines as the attritable drone era takes hold.

Today’s briefing only scratches the surface.

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