Charlie Barnhart, TFI Senior Analyst, interviews Jeff Kaylor about the benefits and challenges of Joint Design Manufacturing (JDM) model for government electronics manufacturing.
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Found the podcast very effective and would like to hear more in this format. Question I have is what percentage of military programs are ITAR controlled and thereby more resistant to offshoring. Jeff said “most” are ITAR. Your Q3 Forum Report indicated over 20% of CM’s used are in SE Asia and/or China already. We are seeing a major avionics OEM getting licences for their military cards to be mfg at a CM in Malaysia. The “non traditional military” CMs seem to be gaining a lot of market share in mil/aero over the past 5 years…Jabil, Celestica, Plexus etc. Expecting commercial avionics to continue to move overseas, but interested in any trend to offshoring in military.