Pentagon demands 'wartime' output from BAE, Lockheed, Honeywell as troops head to Middle East

The initiative focused on expanding manufacturing and securing long-term supply chains as demand for military equipment increased globally
UPDATED MAR 25, 2026
The US Department of Defense signed framework agreements with major defense firms to boost munitions production and modernize manufacturing (AP Photo/Manuel Balce Ceneta)
The US Department of Defense signed framework agreements with major defense firms to boost munitions production and modernize manufacturing (AP Photo/Manuel Balce Ceneta)

WASHINGTON, DC: The US Department of Defense on Wednesday, March 25, announced a series of framework agreements with major global defense manufacturers aimed at expanding production capacity and strengthening military readiness.

The deals, involving BAE Systems, Lockheed Martin, and Honeywell, are part of a broader effort to scale up the US defense industrial base.

Officials said the initiative aims to place the sector on a “wartime footing.” The agreements come amid increased global security tensions and rising demand for military equipment.

U.S. Defense Secretary Pete Hegseth speaks during a joint news conference with the Minister of Defense of Japan Gen Nakatani at the Ministry of Defense on March 30, 2025 in Tokyo, Japan. U.S. Defense Secretary Pete Hegseth is visiting Japan to participate in a Japan-U.S. joint memorial ceremony on Iwo Jima (Iwoto) commemorating the 80th anniversary of World War II's end and to discuss strengthening bilateral security cooperation. (Photo by Kiyoshi Ota/Pool - Getty Images)
Defense Secretary Pete Hegseth speaks during a joint news conference with the Minister of Defense of Japan Gen Nakatani on March 30, 2025, in Tokyo, Japan (Kiyoshi Ota/Pool - Getty Images)

Pentagon targets expanded production and long-term capacity

The agreements outlined by the Defense Department focus on increasing the production of critical munitions and upgrading manufacturing capabilities across key suppliers.

According to officials, the framework deals are valued at hundreds of millions of dollars, although a total figure has not been disclosed.

Honeywell Aerospace is expected to significantly increase the output of components essential to US munitions systems. These include navigation systems, actuators, and electronic warfare technologies.

ARLINGTON, VA - SEPTEMBER 26:  Aerial photo of the Pentagon in Arlington, Virgina on September 26, 2
Aerial photo of the Pentagon in Arlington, Virginia, on September 26, 2003 (Andy Dunaway/USAF via Getty Images)

The Pentagon said the agreement has already unlocked a $500 million multi-year investment by the company to modernize and expand its production facilities.

“By providing a long-term, stable demand for critical munitions, the Department has unlocked a $500 million multi-year investment from Honeywell Aerospace to modernize and expand its manufacturing capacity, marking a key victory for the defense industrial base that directly answers President Trump and Secretary Hegseth's call to build a resilient and enduring Arsenal of Freedom,” the department said.

President Donald Trump speaks during the swearing in for Homeland Security Secretary Markwayne Mullin in the Oval Office of the White House, Tuesday, March 24, 2026, in Washington. (AP Photo/Alex Brandon)
President Donald Trump speaks in the Oval Office of the White House, Tuesday, March 24, 2026, in Washington (AP Photo/Alex Brandon)

Meanwhile, BAE Systems is set to expand its production of munitions for the Terminal High Altitude Area Defense (THAAD) missile interceptor system.

The company is expected to increase output fourfold, reflecting heightened demand for missile defense capabilities amid rising global tensions.

Lockheed Martin will also ramp up production, particularly of Precision Strike Missiles. The Pentagon said the company would invest in advanced tooling, facility upgrades, and testing infrastructure to reduce production timelines and improve efficiency.

LONDON, ENGLAND - SEPTEMBER 12: Visitors look at the BARAK (top), PAC-3 MSE (middle) and THAAD (bottom) missiles from Lockheed Martin on day one of the Defence and Security Equipment International (DSEI) fair at ExCel on September 12, 2023 in London, England. The biennial DSEI fair, organized by Clarion Events, gathers arms buyers and dealers worldwide to network and make deals with military delegations, government officials, and fellow arms companies. (Photo by Leon Neal/Getty Images)
Visitors look at the BARAK (top), PAC-3 MSE (middle) and THAAD (bottom) missiles from Lockheed Martin on day one of the Defence and Security Equipment International (DSEI) fair at ExCel on September 12, 2023, in London, England (Leon Neal/Getty Images)

The agreements are part of a broader strategy by the Trump administration and Defense Secretary Pete Hegseth to strengthen supply chains and ensure sustained production capacity for US military needs.

Officials emphasized that long-term demand signals are intended to encourage private-sector investment in defense manufacturing.

Pentagon prepares additional troop deployment to the Middle East

Separately, the Defense Department is preparing to deploy approximately 3,000 additional troops to the Middle East as tensions involving Iran continue to escalate.

The planned deployment would involve forces from the 82nd Airborne Division, a rapid-response unit based in North Carolina.

WASHINGTON, DC - JANUARY 18: Troops gather as the US Capitol goes into lockdown due to a threat duri
Troops gather as the US Capitol goes into lockdown due to a threat during the dress rehearsal for the inauguration of President-elect Joe Biden on January 18, 2021, in Washington, DC (Rod Lamkey-Pool/Getty Images)

The unit can mobilize forces within hours and is often used in high-priority or emerging conflict zones.

The move comes amid a broader military buildup linked to the ongoing conflict involving the United States, Israel, and Iran.

The deployment would add to the thousands of US Marines already heading to the region to support ongoing operations.

U.S. Army's armored vehicles move during a joint river-crossing exercise between South Korea and the United States as a part of the Freedom Shield military exercise in Yeoncheon, South Korea, Saturday, March 14, 2026. (AP Photo/Ahn Young-joon)
US Army's armored vehicles move during a joint river-crossing exercise between South Korea and the United States as a part of the Freedom Shield military exercise in Yeoncheon, South Korea, Saturday, March 14, 2026 (AP Photo/Ahn Young-joon)

While officials emphasized that no decision has been made to send troops into Iranian territory, the additional forces could provide the Trump administration with expanded military options.

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