Since the release of the 2023 National Defense Industrial Strategy, the Department of Defense has signaled a clear shift: future contracts will increasingly depend on digital readiness — model-based design, secure data sharing and smarter, faster production. For manufacturers, especially those already in defense, this isn’t just about compliance. It’s a real opportunity to strengthen operations, win new work, and lead the next era of U.S. production.

Indiana is in a strong position to lead. As the most manufacturing-intensive state in the country, we have a deep bench of talent, engineering expertise, and supplier networks. That foundation gives us a competitive edge, if we align around it strategically.

Recent research from Worcester Polytechnic Institute sheds light on what sets high-performing manufacturers apart. Here’s what we can take away and how Indiana can seize the moment.

From Patrick O’Neill, Project Manager, of Research:

1. The Tools Are Here — Now It’s About Strategy

Most manufacturers already use digital tools like CAD/CAM, sensors and cloud platforms. The research suggests that difference between the firms that are surviving and those who are thriving comes down to how strategically those tools are put to work. The most successful manufacturers use digital tools to solve real problems and build workforce capacity.

Opportunity:

Each tech adoption opportunity should start with solving a clear problem, and the success of integration should be judged by defined, measurable outcomes.

2. Strategic Adoption Drives Results

The research highlights Strategic Adoption Influencers — conditions that help technology deliver ROI:

Opportunity:

Companies that treat digital adoption like a business strategy — not just an IT upgrade — move faster, retain talent longer, and build credibility with primes and customers.

3. Defense Is Paying Attention to the Supply Chain Core

Digital transformation advice often comes from sectors far removed from production, but that’s changing. Small and mid-sized manufacturers — the backbone of defense — are finally part of the conversation.

At Conexus Indiana, we’re working to make sure digital transformation strategies reflect actual shop-floor realities. Still, we know that recognizing the need for change and having the capacity to act are two different things. Many firms are stretched thin. Capital is tight. Change takes time.

Opportunity:

You don’t have to go it alone. Indiana’s industrial ecosystem is one of the most developed in the country, and it’s aligning around this challenge. Conexus and our partners are helping connect manufacturers with the resources and relationships they need to take that next step.

Bottom Line: The Edge Goes to Those Who Modernize with Purpose

Digital transformation doesn’t happen overnight. But small, strategic steps compound, especially when backed by a strong network. This moment isn’t just about adopting technology. It’s about building capacity, coordinating efforts, and ensuring defense manufacturers are equipped to lead. The opportunity is real — and so is the need for practical support to turn it into progress.