To strengthen small manufacturing for the defense industry
Our Mission
To enable the surge capacity of the U.S. defense industrial base in support of our nation’s warfighters by identifying and integrating small- and medium-sized manufacturers through emerging technology, workforce, and policy solutions.
The Knudsen Institute, a 501(c)(3) organization, seeks to explore the principles of surge theory. It is our DNA.
Through our mission, we seek partnerships with organizations that have aligned goals – be it Native American tribes, colleges & universities, career technical centers, economic development organizations, or other non-profits. Most importantly, we seek to support the United States. This is primarily focused on the efforts at the Department of Defense, but also includes the Department of Homeland Security, the Department of Energy, and the Department of Transportation.
Our mission and our organizational model allows the thoughts developed at the Institute to mature quickly towards these goals.
Our Driving Influences
Starting with World War II and continuing through the Cold War, America created a robust and diverse defense industrial base (DIB). In the years preceding the attack on Pearl Harbor, the United States was ill prepared for war. While America was the nation that created the modern automobile industry, perfected full scale mass production, and introduced commercial air travel, we did not have the manufacturing capabilities to equip an army, let alone build a tank. There was no such thing as a defense industrial base. When President Franklin Roosevelt called for the country to build “an arsenal of democracy” in 1940, it was a dream at best. However, this famous fireside chat became a call to action that was met by the titans of industry. America manufacturing surged. By the end of the war, the United States had equipped enough ships, planes, tanks, and bullets to supply the entire Allied forces.
Today's Situation
However, all is not well. Within the DIB over the past decade, the number of small and medium-sized manufacturers (SMMs) has shrunk by over 40% and has a churn rate of 25%. The overall defense industry is large but is dominated by a few prime defense contractors. The SMM ecosystem critical to our surge capacity is fragile and shrinking.
Result: Not Ready
As result, our military is unable to maintain necessary operational readiness levels. Moreover, we as a nation remain unable to manage a surge environment in which goods need to be manufactured and distributed as rapidly as possible, for an extended period. This must be fixed.
Our programs center around the concept of Surge Theory
Surge Theory is the strategic concept of rapidly scaling resources to meet the demands of a crisis, ensuring readiness and a swift response. It entails understanding the dynamics of mobilization, from manpower to manufacturing, to overcome challenges posed by disasters, conflicts, or peacetime needs, thus safeguarding national security and resilience.
Our Approach
As a nation, we remain ill equipped to handle another shock to our supply chain. While the scars of the global pandemic remain, the responses in the aftermath have been reactionary and do not solve for the underlying root causes. We seek to expand our understanding of manufacturing and logistics as a system in which there are flows of resources inherent to a complex and constantly changing system. Through this new lens we will investigate the concept of surge and develop new principles for how they can be applied.
Emerging technologies such as additive manufacturing, artificial intelligence (AI), and large data analytics hold tremendous potential to remake the American manufacturing base. However, done so void of collaboration with key stakeholders overlooks critical enabling policies and needed workforce development programs. The Knudsen Institute was founded upon the realization that technology and policy must be developed in an interdisciplinary nature to establish a truly integrated and resilient domestic manufacturing industrial base capable of meeting surge requirements.
Public Policy
Knudsen was founded to establish a resilient domestic manufacturing industrial base capable of meeting surge requirements. Policy is key to setting the foundation for change.
Workforce Development
Already facing a skilled workforce shortage in the millions, new methods of bridging the skills gap must be identified or our aging population will only exacerbate a major challenge.
Applied Research
Emerging technologies such as additive manufacturing, AI, & large data analytics hold tremendous potential, but must be integrated with workforce development and policymaking. Our organizational model ensures that integration.
Subject Matter Expertise
The Knudsen Institute has brought together – and will continue to expand – a robust team of subject matter experts that cover all aspects associated with our research and programs. From the Defense Industrial Base to AI to Logistics to Supply Chain to Economic Development to Advanced Manufacturing, we have leaders from around the country committed and actively engaged with our Mission.
Make a Difference!
Get Involved
The Knudsen Institute brings together a robust team of subject matter experts. From the Defense Industrial Base to AI to Logistics to Supply Chain to Economic Development to Advanced Manufacturing, we have leaders from around the country committed and actively engaged.
Project
Collaborate with us to drive solutions for the defense industrial base.
Donate
Contribute to our work to strengthen America’s defense industrial base.
Partnership
Join forces with us to shape the future of defense readiness and surge capacity.
Sponorship
Support our work on surge theory through strategic sponsorship opportunities.
About William S. Knudsen
The Knudsen Institute is named after an important – but forgotten – figure from our nation’s history. William (Bill) S. Knudsen is the grandfather of the modern defense industrial base. The only civilian to be appointed a 3-star general in the U.S. military, his understanding of mass production and ability to influence industry and the government insured the United States had the necessary manufacturing capacity to win World War II. We seek to codify his vision and spirit in everything we do.
Born in Denmark, Knudsen was a prominent industrialist. Bill had gained immense experience and success in the automobile industry, holding high-ranking positions at Ford Motor Company and General Motors. In fact, some would contend that it was Knudsen, and not Henry Ford, that understood mass production and how to implement it. With him, Ford’s ‘horseless carriage’ might have never been more than a novel competitor in the early days of the automobile industry.
As the clouds of World War II gathered, President Franklin D. Roosevelt recognized the need to mobilize American industry for the war effort. In 1940, he appointed Knudsen as the Director of the Office of Production Management (OPM), a civilian agency tasked with overseeing the nation’s industrial production. Later, Knudsen received a commission as a Lieutenant General in the U.S. Army, leading the newly created Air Technical Service Command.
Knudsen applied his exceptional organizational and managerial skills to rapidly transform our industrial capabilities. Known for his famous slogan, “We are going to outproduce them,” Knudsen was instrumental in ramping up the production of war materials, including tanks, planes, and ammunition. Under his leadership, American factories were retooled to shift from producing consumer goods to manufacturing essential war supplies. His contribution to the war was a decisive factor in victory. By streamlining production and leveraging America’s industrial might, he enabled the U.S. to outproduce the Axis powers and equip the armed forces with the weapons and machinery needed to fight and win the war.
Despite his achievements, he remained a humble man, always emphasizing the collective efforts of the American people in the success of the war production. William S. Knudsen’s legacy is a testament to the importance of industry and leadership during times of global conflict.