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Pete Hegseth Unveils Ambitious Plan to Revamp Pentagon Procurement

United States Secretary of War Pete Hegseth looks on as Prime Minister of Hungary Viktor Orban (not pictured) speaks to US President Donald J Trump during a bilateral lunch in the Cabinet Room of the White House in Washington, DC, USA, on Friday, November 7, 2025. Credit: Aaron Schwartz / Pool via CNP

The U.S. Secretary of War, Pete Hegseth, has announced a comprehensive plan aimed at transforming the Pentagon’s approach to arms procurement. Speaking at a recent event attended by military officials and defense industry leaders, Hegseth emphasized the urgency for the United States to adapt its military capabilities in the face of escalating global threats. His remarks come amid ongoing tensions surrounding Taiwan and the broader geopolitical landscape involving China and Russia.

During his 70-minute address, dubbed “Arsenal of Freedom,” Hegseth highlighted the need for a shift from traditional procurement methods to a more dynamic and responsive system. He stated, “If we are going to prevent and avoid war, which is what we all want, we must prepare now.” Hegseth’s approach advocates for longer contracts for proven defense systems and a focus on acquiring weapons that are ready for deployment, even if they are not fully operational.

The backdrop of Hegseth’s speech includes recent comments from former President Donald Trump, who suggested that the AUKUS defense pact with Australia is aimed at deterring Chinese aggression in the region. Trump has previously expressed confidence in his personal rapport with Chinese President Xi Jinping, believing it could influence decisions regarding Taiwan. However, historical precedents suggest that personal relationships may not always effectively deter aggressive actions from global leaders.

Hegseth’s address resonated with many in the defense sector, where he articulated a clear message: the current procurement system is “dead.” He called for a revitalization of the defense industrial base, stating that the Pentagon is pivoting to a “wartime footing.” He emphasized that suppliers who can rapidly increase production would be prioritized, reflecting a new urgency in military readiness.

The Secretary of War also urged defense contractors to invest in their own capabilities, warning that those unwilling to assume risks may find themselves excluded from future contracts. “We appreciate your need to make a good margin and a profit as capitalists, but you must invest in yourselves rather than saddling taxpayers with every cost,” he said.

Hegseth’s vision aligns with broader themes discussed at recent NATO meetings, where leaders underscored the need for increased cooperation among member nations. NATO Secretary General Mark Rutte echoed similar sentiments, calling on defense industry leaders to prioritize quantity and innovation in arms production. Both officials recognized that enhancing military capabilities is essential for maintaining alliances and addressing emerging threats.

One company that exemplifies Hegseth’s proposed model is Anduril, which has begun producing advanced military technologies without waiting for government contracts. This agile approach has already yielded positive results, as evidenced by their successful development of the underwater drone Ghost Shark within a short timeframe.

While the call for reform is clear, challenges remain. The U.S. Navy currently faces significant production constraints, particularly regarding the nuclear submarines that Australia seeks under the AUKUS agreement. Presently, the U.S. is producing these submarines at a rate of only 1.2 per year, a figure that must increase to meet commitments under the pact.

Admiral Daryl Caudle, Chief of Naval Operations, has indicated that reaching a build rate of 2.3 submarines per year is crucial for fulfilling the AUKUS deal. As the Pentagon navigates these complexities, the effectiveness of Hegseth’s proposed reforms will ultimately depend on the willingness of the defense industry to adapt and respond to the new procurement landscape.

The urgency of Hegseth’s message, along with the supportive comments from industry leaders, suggests a significant shift is underway in U.S. defense policy. How effectively these changes will be implemented remains to be seen, but the implications for both national security and international alliances are profound. As Hegseth concluded his speech, “We’re going to make defense contracting competitive again,” signaling a decisive move towards a more agile and responsive military procurement strategy.

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