What manufacturers should evaluate before pursuing supply chain opportunities.
While representing First American Bank at the Aerospace Defense Americas Conference, held at the 2026 Farnborough International Airshow, one message came through clearly: aerospace and defense demand is growing faster than current production capacity. That could create opportunities for qualified U.S. manufacturers, but success will depend on their operational and financial readiness.
Why is demand creating openings?
At the 2025 NATO Summit in The Hague, NATO members agreed to raise defense and security-related investment to 5% of gross domestic product by 2035. The target includes core defense, infrastructure, cybersecurity and the defense industrial base. PwC reported that the five largest U.S. aerospace and defense companies ended fiscal 2025 with a combined backlog of approximately $1.36 trillion, up nearly 24% from the prior year.
Turning that investment and backlog into finished products will require more than increased output from major contractors. The Department of Defense relies on a global network of more than 200,000 suppliers. A July 2025 Government Accountability Office report also identified dependence on certain foreign suppliers as a national security risk. This may create opportunities for qualified U.S. manufacturers that can meet the industry’s quality, compliance and delivery requirements.
“Entering the aerospace and defense supply chain requires more than production capacity. Manufacturers must demonstrate consistent quality, reliable delivery and the ability to meet complex customer requirements” said Ivan Barrios, President and CEO of World Trade Center Miami.
Where could your business fit?
Manufacturers serving medical device, automotive, or electronics customers may already have a useful foundation in skilled labor, controlled processes, and documentation. However, aerospace work carries additional requirements. AS9100 adds aviation, space, and defense requirements to an ISO 9001 quality management system. Depending on the customer and contract, suppliers may also need cybersecurity controls, export procedures, or special-process approvals.
Before investing, identify the customers and contract tiers you want to pursue and compare their requirements with your current capabilities. Published estimates suggest that AS9100 certification may cost approximately $8,000 to $30,000 and take six months to a year, depending on the company’s size, complexity, and existing quality system. Customer-specific requirements may add to the investment, making financial planning as important as technical capability.
What help is available?
The SBA’s Manufacturers’ Access to Revolving Credit program provides eligible small manufacturers with flexible working capital, while its Made in America Loan Guarantee offers a 90% federal guarantee to help eligible manufacturers invest in equipment, facilities, and production. Qualified borrowers may also combine 7(a) and 504 loans for up to $10 million in SBA-backed financing.
The Export-Import Bank’s Make More in America Initiative supports eligible export-oriented domestic manufacturing projects, and the Department of Labor’s Industry-Driven Skills Training Fund supports workforce training through participating state agencies. Together, these government initiatives are helping manufacturers build the capacity, workforce, and financial readiness needed to pursue opportunities in the aerospace and defense supply chain.
Prepare for Disciplined Growth
The opportunity is real, but readiness should come before expansion. Estimate the full cost of qualification, understand the expected cash cycle and confirm that financing can support materials, equipment and labor. First American Bank can help manufacturers evaluate equipment financing, working capital, treasury management and other financial needs as they prepare to pursue aerospace and defense opportunities. Get in touch with our team to learn more.
