Defense Manufacturing Jobs Surge 40% Amid Global Demand

Defense manufacturing job growth is facing an unprecedented surge, with the U.S. manufacturing industry potentially needing 3.8 million jobs between 2025 and 2033. Despite this remarkable opportunity, more than half of these positions—approximately 1.9 million jobs—could remain unfilled if current workforce challenges persist. This skills gap represents a critical threat to both national security and economic prosperity.

The aerospace and defense industry stands at a particularly crucial juncture, as the Department of Defense estimates the defense sector alone will require more than 4 million jobs over the next decade. Consequently, manufacturing job growth in this sector has become a national priority, with the DoD allocating $80 million to support over 2,200 defense businesses. High-demand roles such as statisticians, data scientists, engineers, and logisticians are projected to grow fastest through 2032, often commanding competitive manufacturing engineer salaries to attract qualified talent. However, if these workforce challenges remain unaddressed by 2030, the defense sector could face over $1 trillion in gross domestic product impact.

The aerospace and defense manufacturing sector witnessed an extraordinary 40% surge in job opportunities over the past decade, fueled by increasing global tensions and technological advancements. Employment in this critical industry reached 2.211 million in 2024, representing 1.4% of the nation’s total employment base. Most notably, the A&D workforce expanded by 4.8% from 2022 to 2023 alone, significantly outpacing the national average growth rate of 1.7%.

What’s Driving the Surge in Defense Manufacturing Jobs?

The U.S. federal budget priorities are the primary catalyst behind defense manufacturing job growth, creating substantial employment opportunities across the sector. This investment is attracting workers with competitive compensation—the average labor income per job within the A&D industry stands at $112,000, approximately 50% above the national average.

Both major defense contractors and small to medium sized defense manufacturing companies alike are actively expanding their workforces. Lockheed Martin, Northrop Grumman, and General Dynamics—with a combined market capitalization exceeding $250 billion—currently have nearly 6,000 open positions. Additionally, ten other major players in the industry aim to add approximately 37,000 positions collectively, representing about 10% of their total workforce.

Despite aggressive recruitment efforts, the industry faces significant talent shortages. Employment in aerospace products and parts manufacturing in the U.S. currently sits at 534,442, but one leading global aerospace original equipment manufacturer estimates that the commercial aerospace segment alone could require an additional 123,000 technicians in the next two decades.

How Global Instability is Fueling Aerospace and Defense Industry Growth

Geopolitical tensions have dramatically accelerated defense industry expansion. According to the Stockholm International Peace Research Institute, over 59 countries were at war in 2024, and consequently, global defense expenditures surpassed $2.4 trillion.

The Crimean Peninsula’s 2014 annexation marked a turning point for the defense industry, with 50.6% of global defense companies immediately affected following this event. Furthermore, the Russia-Ukraine war impacted the stocks of 81.4% of global defense companies, highlighting how regional conflicts drive worldwide industry growth.

Meanwhile, retention remains challenging across the sector. The Aerospace Industries Association reported personnel turnover of about 13% in 2023 (excluding retirements), substantially higher than the average U.S. turnover rate of 3.8%. This churn creates additional pressure to fill critical roles throughout the manufacturing supply chain.

The commercial aerospace sector comprises 47% of the industry’s direct employment, while the defense and national security sector accounts for the remaining 53%. Within these segments, specific subsectors like aeronautics/aircraft (462,000 workers), land and sea systems (186,000 workers), space (145,000 workers), and cyber (118,000 workers) represent the largest employment categories.

Which High-Paying Roles Are in Demand?

Defense industries currently face an unprecedented demand for specialized talent, with high-paying roles expanding across technical and operational domains. As defense contractors compete for qualified workers, certain positions command exceptional salaries due to the specialized skills required and security clearance prerequisites.

Statisticians and Data Scientists Lead the Tech Wave

The defense sector increasingly relies on data-driven decision making, creating premium opportunities for statisticians and data scientists. These professionals analyze intelligence data for the Department of Defense, develop predictive models, and drive AI initiatives in defense applications. Big data analytics is experiencing dramatic evolution across defense organizations, with roles focused on planning, acquisition, management, and analysis of data seeing exponential growth. Professionals in aerospace and defense data positions typically earn higher compensation than their counterparts in other industries, with the aerospace and defense sector offering the highest average tech salary at $130,574 annually.

Logisticians and Engineers Remain Essential

Aerospace engineers remain among the most sought-after professionals, earning an annual mean wage of $134,330. The highest concentration of these roles exists in Alabama, Washington, and Kansas, with location quotients of 5.49, 3.54, and 3.47 respectively. Engineering salaries vary significantly by specialization, with thermodynamics engineers commanding $117,000-$225,500 annually, aeronautical engineers earning $89,000-$172,000, and aircraft design engineers making $138,500-$166,500. Logistics experts who coordinate defense manufacturing supply chains are equally crucial, with logistics engineers earning $108,000-$162,000 annually.

Software Developers and IT Managers See Rising Demand

Defense contractors are increasingly competing for software talent, with software engineers earning average salaries of $108,896. Systems integration engineers, who develop command-and-control systems and integrate battle management platforms, command even higher compensation at $112,645 annually. Moreover, cybersecurity specialists earn approximately $98,832 yearly, reflecting the critical importance of protecting sensitive defense networks and infrastructure.

Industrial Maintenance Technicians Fill Critical Gaps

Industrial maintenance technicians represent one of the most significant workforce gaps in defense manufacturing. These professionals install, repair, and maintain industrial machinery in manufacturing settings, ensuring production equipment functions properly. Maintenance technicians typically earn $17.79 hourly on average, with rates ranging from minimum wage to $34.55 per hour. The U.S. Bureau of Labor Statistics reports that industrial machinery mechanics earn a median annual wage of $63,760, making this field particularly attractive for technical workers without advanced degrees and/or specialized skill sets.

Why the Skills Gap Threatens Manufacturing Job Growth

The looming skills gap presents a significant threat to defense manufacturing job growth across the United States. As federal initiatives create more opportunities in this sector, the industry faces critical workforce shortages that could undermine national security and economic competitiveness.

1.9 million Jobs Could Go Unfilled by 2033

Deloitte and The Manufacturing Institute’s recent analysis paints a concerning picture for the manufacturing landscape. Although the U.S. manufacturing industry expects to need as many as 3.8 million additional employees between 2025 and 2033, approximately 1.9 million of these positions—more than 5 in 10 skilled openings—risk remaining vacant without strategic intervention. The manufacturing skills gap could potentially cost the economy $1 trillion in 2030 alone. Currently, workforce challenges rank as the top concern for manufacturers nationwide, with 65% of respondents in the National Association of Manufacturers’ 2025 Q1 outlook identifying talent attraction and retention as their primary business challenge.

Gen Z Disconnection and Lack of Access

Since 2019, Gen Z’s share of the manufacturing workforce has actually declined from 8% to 7%, even as millions of young adults entered the job market. Interestingly, this isn’t necessarily due to disinterest—Gallup research indicates Gen Z shows considerable interest in technical subjects but lacks exposure to manufacturing careers through educational institutions and media. Many young Americans are prioritizing personal growth over immediate employment, seeking positions with flexibility that manufacturing often struggles to provide. A quarter of Gen Z respondents also expressed reservations about industrial work safety, with one-fifth believing such careers offer inadequate compensation.

Mismatch Between Job Requirements and Available Talent

A fundamental disconnect exists between employer expectations and employee priorities. In defense manufacturing, 50% of employers consider basic cognitive skills among their top two priorities, yet only 32% of employees share this view. Conversely, 44% of employees prioritize specialized technological skills, compared to just 24% of employers. This misalignment is exacerbated by short-sighted workforce planning—over half of companies plan only 18 months ahead, insufficient time for educational institutions to update curricula or produce graduates with relevant skills.

How Training and Partnerships Are Closing the Gap

Innovative partnerships between educational institutions and defense contractors are emerging nationwide as a response to the manufacturing skills gap. These collaborative efforts focus on creating pipelines of skilled workers through specialized training and flexible employment options.

Apprenticeships and Technical College Collaborations

Educational institutions throughout the country are forging strategic alliances with defense manufacturers to develop talent pipelines. In Maine, defense contractors, community colleges, universities, and the U.S. Navy launched a $6.50 million initiative to attract and train thousands of workers for the state’s defense industry. This partnership includes General Dynamics Bath Iron Works, Pratt & Whitney, and Portsmouth Naval Shipyard, which collectively need to fill over 7,500 positions. York County Community College will construct a 10,000-square-foot welding lab, creating a Center for Excellence in Manufacturing and Trades capable of training up to 1,500 prospective workers annually.

In Utah, the Utah Advanced Materials Manufacturing Institute brings together public, private, community, industry, and education partners to enhance collaboration and develop a skilled workforce. Similarly, IACMI – The Composites Institute implements apprenticeship programs with industry partners across Alabama, Florida, New York, Tennessee, and Puerto Rico.

Flexible Work Arrangements Improve Retention

Manufacturing companies increasingly offer flexible scheduling options to improve worker retention, with 46.8% of companies now providing flexible scheduling to production workers. For production employees, 42% consider flexibility as important as or more important than pay. Nearly 50% of manufacturing employees cite flexibility as a reason they stay with their employer.

Manufacturers implement various flexibility approaches including compressed workweeks, shift swapping, rotating shifts, and phased retirement options. These arrangements help companies tap into broader talent pools, particularly attracting women who often bear disproportionate caregiving responsibilities.

Government Grants and Military-To-Civilian Transition Programs

The Department of Defense awarded nearly $100.00 million to 28 public-private apprenticeship partnerships through the Closing the Skills Gap grant program. These initiatives support the training of more than 92,000 individuals in advanced manufacturing, healthcare, and information technology.

Presently, the Department of Labor’s Veterans’ Employment and Training Service addresses employment needs of over 200,000 military service members transitioning to civilian life each year. The Transition Assistance Program offers tools and training for transitioning service members seeking civilian employment. Specifically, the Employment Navigator and Partnership Program provides one-on-one career assistance, alongside programs like SkillBridge that connects service members with civilian work experience during their last 180 days of service.

The Accelerated Training in Defense Manufacturing program offers 16-week training for veterans in high-demand fields such as additive manufacturing, CNC machining, and welding, creating pathways for military personnel to fill critical manufacturing roles.

Looking Ahead: The Future of Defense Manufacturing Employment

Defense manufacturing stands at a critical crossroads. Undoubtedly, the 40% surge in job opportunities presents enormous potential for economic growth, national security enhancement, and technological advancement. Nevertheless, the looming skills gap threatens this promising trajectory, potentially leaving 1.9 million positions unfilled by 2033.

Accordingly, several patterns emerge from this analysis. First, global instability continues to fuel unprecedented demand for defense products, subsequently creating more high-paying roles across the sector. Secondly, disconnection between Gen Z workers and manufacturing careers persists despite competitive compensation packages. Lastly, innovative training partnerships have begun addressing these challenges, though significant gaps remain.

The stakes could not be higher. Until workforce challenges receive adequate attention, the defense sector risks losing over $1 trillion in economic impact by 2030. This gap affects not merely corporate profits but national security priorities as well. Although companies now implement flexible work arrangements and partner with educational institutions, these efforts must expand significantly to match current demand.

Therefore, stakeholders throughout the defense manufacturing ecosystem must commit to long-term workforce development strategies. Companies that invest in apprenticeship programs, technical college collaborations, and military-to-civilian transition initiatives will likely gain competitive advantages. Similarly, educational institutions that align curricula with industry needs will better serve both students and defense employers.

The defense manufacturing renaissance depends primarily on solving this talent equation. Without skilled workers filling critical roles from industrial maintenance to advanced engineering, even massive defense budgets cannot translate into operational capability. The industry’s future rests not only on technological innovation but equally on human capital development.