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Manufacturing scale, lot sizes and product complexity in defense and commercial manufacturing

Almost no systematic empirical analyses exist directly comparing defense and commercial manufacturing processes. A unique survey of nearly 1000 US manufacturing establishments allows a comparison of similar manufacturing processes in the machining intensive durable goods industries, which account for more than half of all defense purchases of durable goods. Organizations with and without defense contracts do not differ statistically in several measures of scale. Neither are production volumes or lot sizes different on average in machining operations, though defense production does tend more to concentrate where flexible manufacturing technologies are well suited. However, defense related machining products in this sector are more complex to manufacture.