From warehouses to factories: The changing face of defense

When Russia launched its full-scale invasion of Ukraine in 2022, many assumed the war would be a short one. Instead, it evolved into a long war of attrition where endurance became the critical factor. Warehouses filled with ammunition, spare parts and fuel were suddenly in the spotlight. Supply chains that were once background infrastructure became strategic assets.

Now, as the war enters its third year, another shift is unfolding. This conflict may still be fought in trenches, but it’s being shaped—and potentially decided—on factory floors. Industrial capacity is emerging as the true measure of strength.

Sustaining deterrence through a resilient industrial base

This change raises urgent questions for NATO and its partners, particularly across Europe. Are we equipped to keep up, not only in firepower but in staying power? Can we produce enough, fast enough, while staying ahead technologically?

The answer doesn’t lie in returning to Cold War stockpiling. It lies in building a modern, flexible and resilient defense industrial base—one that can meet today’s demands and adapt to tomorrow’s threats. This is one reason that accelerating digital transformation, reconfiguring supply chains for greater resilience, and harnessing disruptive technologies amidst geopolitical uncertainty are key industry trends identified by the 70 defense and intelligence leaders we interviewed in the CGI Voice of Our Clients.

Deterrence now hinges on our ability to produce more and adapt faster than our adversaries.

We’re already seeing progress. Countries are investing in expanded production lines, reviving dormant capabilities and rethinking logistics. Concrete and steel aren’t enough. What’s needed is a new mindset—one that embraces speed, agility and innovation.

Building smarter, not just bigger

Modern defense isn’t just about mass production. It’s about smart production.

That means integrating digital tools across the supply chain, feeding real-time operational data back into design loops, automating quality checks, and using predictive analytics to anticipate bottlenecks before they happen. These capabilities are already transforming how some defense manufacturers operate and accelerating their ability to meet urgent needs.

It’s also about partnerships. Armed forces, industry and technology providers must work together more closely than ever. At CGI, we see firsthand how shared goals and data-driven collaboration unlock value. By combining secure digital environments with scalable production systems, organizations can pivot faster and deliver smarter.

Resilience is the new readiness

A flexible defense ecosystem does more than respond to crises. It builds long-term resilience. That means diversified supply chains, evolving modular platforms, and designed systems that don’t just work today, but adapt to tomorrow.

The geopolitical landscape is volatile and that won’t change anytime soon. What can change is how we prepare. Readiness is no longer just about boots on the ground or aircraft in the air. It’s about how quickly we can build, repair and innovate. Industrial agility is now a core pillar of collective defense.

The road ahead

After decades of peacetime optimization, many nations are rediscovering the value of strategic depth and redundancy. Going back to old models won’t get us where we need to be. This is a new era that demands speed, intelligence and coordination. Where speed in decision processes not only adheres to command & control situations with maneuver units at the front, targeting processes and intelligence gathering – but also smart manufacturing, smart procurement and smart deployment of resources.

We’ve seen that stockpiles helped in the early days. But looking forward, it’s factories—connected, digital and resilient—that will define our strength. The future of defense lies not just in what we store, but in what we can build when it counts.