As the U.S. military faces a pivotal moment in modernization, Army Chief Financial Officer Marc E. Andersen is making the case that the nation must harness private investment to rebuild its defense industrial base. In a stark comparison to the D-Day invasion, Andersen warns that the current window of opportunity is narrow and could close if action is delayed.
Andersen points to President Trump's fiscal 2027 defense budget, which sets a $1.5 trillion investment goal, as a signal to mobilize capital. However, he argues that government appropriations alone cannot meet the scale of the challenge. Instead, he proposes a National Security Capital Strategy that aligns public policy with private investment to accelerate innovation in critical areas like drones, hypersonics, and advanced computing.
The defense industrial base, Andersen notes, has diminished significantly since World War II. While some decline is natural in peacetime, he warns that certain capabilities have eroded too far. Conflicts in Ukraine and Iran have exposed gaps in production and technology that must be addressed urgently.
Unlike non-market economies that can direct resources by decree, the U.S. relies on a vibrant private sector. Andersen sees this as a strength, not a weakness, provided the government creates the right incentives. He draws on historical precedents like the interstate highway system and the space program, which combined public purpose with private ingenuity.
The challenge today is even greater, requiring trillions of dollars over decades for critical minerals, energy infrastructure, and resilient supply chains. Andersen highlights existing efforts, such as the Department of War's Office of Strategic Capital and the Army's Strategic Capital Initiative, as foundations for a larger coordinated push.
A national security capital strategy would compel a wide range of investors—from public companies to pension funds and venture capital—to see defense as a compelling long-term opportunity. Andersen insists that if markets perceive a multi-generational wealth-creation potential, they will respond. However, he cautions that returns may take years, requiring steadfast policy support.
Lawmakers and policymakers must act as stewards of this vision, ensuring regulatory and permitting decisions prioritize national security. Andersen stresses that deliberate stewardship will build confidence beyond election cycles, driving predictable demand and faster acquisition.
The window is open, but it won't stay open indefinitely. Andersen calls for a strategic deployment of public policy to unleash the full force of American capital markets. As he puts it, this is a maneuver centralized economies cannot replicate. The U.S. has the assets—now it must connect them.
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