Manufacturers need more capacity – but simply building more of the same is not enough. In this Supply Chain Byte, Lisa Anderson discusses Anduril Industries’ plans to expand capacity for the U.S. submarine industrial base using a software-defined manufacturing approach. Technology, data, automation and AI are being incorporated into the production system from the beginning to accelerate processes and build capacity differently.
For manufacturers, the lesson is clear: when expanding capacity, reshoring or developing new capabilities, think about technology at the start – not after the facility, equipment and processes are already in place.
The U.S. has been far behind China in building submarines. Even the best-case figures show China at double the production, but many estimates show a significant variance between the two. There is plenty of demand for submarines but not the capacity to manufacture them. Thus, the new shipyard project, Arsenal 2 developed by Anduril Industries entered the market with a joint investment with the Navy. Anduril develops autonomous defense systems, drones, underwater vehicles, and advanced military technologies, and so they decided to do it differently – as the status quo would not be nearly sufficient in the foreseeable future.
The current bottleneck is the lack of torpedo tubes. Thus, Anduril also has committed to build these torpedo tubes in their California facility while the shipyard is being built and supplying them to the broader manufacturing ecosystem to support production increases near-term. Even though these companies could be considered competition down-the-line, the ecosystem is taking priority over company. That is the future of successful supply chain strategies.
In addition, the new shipyard will not be a traditional shipyard. Instead, they are rethinking manufacturing and integrating technology into manufacturing operations. By using a software-defined manufacturing approach, they can scale production rapidly to meet customer demand.
What should we do?
Smart companies will look at building capacity but not in the same way as they have traditionally. Re-think everything you do especially how you manufacture and your supporting supply chain. Utilize smart technology and pursue an AI-enabled manufacturing strategy to scale quickly and efficiently. Otherwise, you will get to the first lap as your competition gets to the finish line. In addition, you must consider the broader manufacturing ecosystem. Do you have the supplier base, technology, talent, skills development, and full ecosystem to support customer demand in a profitable way?
If you are interested in reading more on this topic:
Building Capacities and Capabilities Before You Need Them