Machine Shops & US Defense Industrial Base

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August 30, 2020

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Florida, USA

We are evaluating machine shops as a space to invest.

We have found a few machine shops out there who claim to have sales in the defense market but we are unsure if they are in a tiered supply chain selling to larger defense companies who then sell upstream to DOD, or if these machine shops sell direct to DOD; we believe the market consists of a blend of both.

Does anyone know any machine shops who sell direct to the DOD, possibly through the Defense Logistics Agency?

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Reply by a searcher
in Newport Coast, Newport Beach, CA, USA
Hello AJ
I have a little experience in this space. I own a company that was a spin off from a defense industry machine shop. I can tell you that most machine shops in this space are second tierd or sub contractors to the Lockheed’s, Boeing’s, and ect which are not selling directly to the DLA. If you need more info PM me and I can hopefully lead you in the right direction if needed.
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Reply by a searcher
from The University of Michigan in Ann Arbor, MI, USA
Depends on the size/scope of some of the jobs... defense contractors keep a diversified pool of shops as direct suppliers for various reasons (supporting small businesses, minority owned businesses, etc.) but in the end their supply base becomes too spread out and supply chain economics deteriorate and they end up working with those that are more established and reliable in the long term.
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