OM in the News: Patriot Missiles and Second Tier Suppliers

The newest Patriot surface-to-air missiles can be fired in seconds, but take more than two years to build and cost around $4 million each.  Despite that math, the U.S. and its allies can’t get enough of them, reports The Wall Street Journal (June 10, 2026).

Pentagon officials just reached an agreement with Lockheed Martin to more than triple production of the latest Patriot, the PAC-3, to 2,000 a year. But the weapons maker isn’t expecting to hit that target until the end of 2030. Why is that?

Lockheed is facing a litany of challenges to hit its target. It counts more than 400 companies that provide parts for its missile. More than 80% are at the second tier—the PAC-3 suppliers’ suppliers. But these firms provide components to more than one missile program. That makes it harder to increase production of one type of missile without disrupting the supply chain for another in-demand weapon.

And some missile circuitry is considered commercially obsolete, forcing the U.S. to rely on expensive equipment from foreign suppliers. The “seeker” in the missile’s nose—a vital part that allows the interceptor to lock onto incoming missiles and aircraft—comes from a single Boeing factory.

Boeing said the company has sped up “seeker” production by adding robotic equipment and finding new suppliers to provide parts like circuit cards. L3Harris plans to boost its rocket-motor production capacity as it brings more manufacturers into its supply chain. “You need the whole ecosystem to line up,” L3Harris’ CEO. “If we quadruple a missile, we’ve got to quadruple the cases. We’ve got to quadruple the igniters, valves, the throttles.”

For decades, the military favored lean supply chains and peacetime efficiency. That approach saved money, but under the pressure of conflict its weakness is revealed. Depending on one qualified source for a key missile component is not the answer. Selective redundancy and second-sources for critical components may be.

Classroom discussion questions:

  1. Why are tier 2 suppliers a problem in many supply chains?
  2. Summarize all the issues slowing the production of Patriot missles.

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