Since October 7, 2023, the Israel Defense Forces (IDF) have been embroiled in high-intensity battles across multiple fronts, both within and outside of Israel. The replenishment of damaged military platforms and components and the provision of essential ammunition have become paramount to the war effort. However, two key factors have significantly complicated this mission.
Firstly, a global shortage of critical supplies, such as 155-mm. artillery shells, has arisen due to the war in Ukraine, which has diverted many of these resources over the last two years. Secondly, there is a concerning trend of export limitations on armament supplies to Israel (in some cases up to a total embargo) imposed even by traditionally friendly nations such as Italy, Canada, and France.
While the United States has recently approved an unprecedented military aid package to Israel valued at over $14 billion, there are rumors circulating from Washington suggesting that the US may also cease providing Israel with much-needed weaponry, such as precision munitions for its Air Force.
In response to these threats, Israel has already initiated proactive measures to significantly reduce its reliance on foreign military supplies. Can a small country with limited resources realistically achieve such a goal?
The answer is affirmative, as exemplified by North Korea, a nation that has been under stringent international sanctions for decades, yet possesses formidable military capabilities, including ballistic missiles capable of carrying nuclear warheads. However, Israel must tread cautiously, as North Korea’s achievements came at horrific economic and social costs, a path Israel must never take.
Israel should take decisive steps to decrease its dependence on external sources for its weaponry. However, this must be done intelligently and with minimal impact on its economic and social fabric. Below are several proposed guidelines.
Proposed guidelines for Israel
Invest more in education and training: Allocate resources to educate and train scientists and engineers who will spearhead future research and development efforts in the Israeli defense sector. This entails expanding existing Reserve Officers’ Training Corps (ROTC) programs and providing hands-on internship opportunities at Israeli defense companies. Experience has shown that upon completing their service commitments, graduates of such programs often transition to the civilian sector, contributing significantly to Israel’s economy.
Develop export opportunities: Israeli defense companies must focus on export-oriented strategies to sustain themselves economically. Hence, when striving towards self-reliance, they must also ensure that the products they develop within these efforts will be attractive elsewhere.
Subsidize limited production capacity: In certain critical areas, such as computer chips, competing with foreign manufacturers is not economically feasible (at least in the foreseeable future). In these areas, Israel should invest in developing some minimal production capacity, despite the strain on its economy. This capacity can serve to produce small batches of unique (likely classified) items during routine times and as emergency backups for times of conflict.
Supply chain management: Adhere to supply chain management principles by setting appropriate inventory levels to meet future conflict scenarios and avoiding single-source situations whenever possible. Meticulously analyze the “bill of materials” for each end-product, to ensure multiple sources and the availability of qualified production equipment and human resources for each component.
Leverage relative advantages: Capitalize on areas where Israel holds a relative advantage, such as artificial intelligence (AI), by developing highly sought-after systems that can establish a price to be paid by countries buying these products, if they ever decide to impose an embargo.
Pragmatic product development: Israeli defense companies typically strive for excellence. However, when it comes to reducing dependency on external sources, they may need to compromise on producing less-than-optimal products, as long as they surpass those of adversaries.
Budget prioritization: Recognize that Israel’s defense budget will always be limited. Therefore, investments must be wisely prioritized with the courage to forego low-priority areas when necessary.
Implementing a policy based on these guidelines will significantly reduce IDF’s dependency on external sources while fostering a prosperous economy and a healthy society.
The writer is a professor and former executive vice president of the Technion – Israel Institute of Technology. An expert in management science, he’s on the boards of several Israeli companies and nonprofit organizations.