The National Defense Industrial Association, in its latest survey of the defense industrial base, found that nearly 32% of defense contractors do not expect their businesses to return to a normal level of operations for more than six months.
The report, set for release today, is the latest effort by the industry group to assess the effects of the COVID-19 pandemic on the defense industrial base. NDIA first undertook this effort last year when the Pentagon asked it to conduct a rapid survey of defense contractors to determine how DOD could help them.
"Now, more than one year after the initial request of DOD, NDIA is again seeking to provide the Department and NDIA's membership with an analysis of how our member companies -- and members of the broader [defense industrial base] -- are faring in the ever-changing landscape of 2021," the new report reads. This study began in April 2021.
According to the new report, small businesses, especially those with 25 or fewer employees, were the most likely to report large negative effects on their business.
About 19% of respondents said their business has now returned to normal operations, but nearly 32% said they don't expect to return to normal for more than six months.
"The impact of COVID-19 on revenue has lessened significantly over the last 13 months," the report found. "Over one-quarter of all businesses in the DIB now report no impact on revenue expectations while the number of businesses experiencing just a slight impact has increased by a factor of five."
NDIA found that businesses said the most common factor affecting operating capacity was employee availability.
In an interview with Inside Defense, Corbin Evans of NDIA said the organization was happy to see significant progress in the survey, but recognizes lingering effects remain.
"We want to continue to let DOD know that while a lot of folks are back to normal . . . there is still a ton of uncertainty and a ton of lingering impacts of the crisis," Evans said.
NDIA is "definitely interested in sharing this information with" the Pentagon, he said.
"We really expect there to be a large level of interest," Evans added.
He also told Inside Defense the organization will conduct another survey in August and September.
"We know that this summer is going to be a really influential and consequential time to be a member of the defense industrial base," he said.