Defense contractors brace for new orders amid Iran war, but struggle to find skilled workers

Inside CPI Aero Inc.'s cavernous factory in Islip, dozens of employees spend hours fabricating parts that end up in many of the federal government's most deadly military weapons.

The company's wing kits and aerial refueling probes are incorporated into warplanes, while its pods for fighter jets carry equipment used in electronic warfare. The components and others are part of the military hardware currently deployed in the war with Iran, executives said.

CPI Aero, along with many of the 400-plus defense manufacturers in the New York region, plays a key role whenever the United States goes to war or helps an ally, such as Ukraine, defend itself against an aggressor. Together, the businesses are part of a crucial pipeline that has been replenishing military stocks for the past year as the Trump administration spends a record $1 trillion on national defense.

“Our structural assemblies are flying on many of the aircraft being used by the U.S. Air Force, Army, Navy and Coalition Forces in Operation Epic Fury," said Jay Mulhall, vice president of business development at CPI Aero, using the official name given to the Iran conflict that began on Feb. 28. 

"The surge in orders was already underway, and now we have to replenish the stockpiles," he said during a tour of the company's 135,000-square-foot plant. The facility has 30-foot ceilings and is divided into sections for contracts from RTX (formerly Raytheon), Boeing, Northrop Grumman and other customers. 

As the Iran war enters its second month, CPI Aero and others are bracing for new orders as the United States draws down its supply of missiles and extends the use of fighter jets and ships beyond their scheduled maintenance. The increased demand comes as companies struggle to find skilled employees and face tight production deadlines from customers, according to military analysts and business executives.

Long Island, together with Queens and Brooklyn, is home to the fifth-largest cluster of aerospace and defense manufacturers in the country. The cluster employs 25,000 people and generates $8 billion to $10 billion in economic activity per year, based on data from a trade group in Uniondale.

"Long Island companies are critical to the success of this mission by providing product that no one else can," said John Spiezio, chairman of the Uniondale group, Aerospace & Defense Diversification Alliance in Peacetime Transition, or ADDAPT, referring to the Iran war. “There is definitely a significant amount of activity ongoing, and we expect it to continue to increase."

Execs: Orders to inject an economic boost 

The first manufacturers to receive new orders will probably be those that produce power systems, valves, connectors and cables for missiles, as well as components for ammunition systems and landing gear for jets, said Spiezio, who also works as a consultant to aerospace giant Lockheed Martin.

Spiezio cited the example of a Long Island company ordered to boost production of electronic circuits for guided missiles, which are in heavy use in the Middle East. He said he couldn't name the company for security reasons.

Spiezio and others predicted new contracts tied to the war won't be awarded for at least several months, but they will boost the local economy for the next two years.

The U.S. Department of Defense recently requested price quotes for missiles and aircraft spare parts that need to be replaced. The requests were sent to original equipment manufacturers, who will then award contracts to their parts suppliers in Nassau and Suffolk counties and elsewhere.

At B&B Precision Components Inc. in Ronkonkoma, company president August Bricker said he has been getting more inquiries from the DOD about his capabilities to make parts since the Iran war began: up to 10 inquiries per day compared with the prewar average of four to five.

B&B, which has three employees, manufactures small batches of customized components for Bradley Fighting Vehicles, Apache helicopters and fighter jets, such as the F/A 18 Hornet, A-10 Warthog, F-15 Eagle and F-35 Lightning. The parts are used in bomb racks and to inspect parachute assemblies, among others.

“We received a directive to start gearing up; that it’s going to become busy,” Bricker said, referring to a conversation he had with officials from the Garden City office of the Defense Contract Management Agency. The agency is part of the DOD and is responsible for ensuring that suppliers of military equipment deliver on time, within budget and meet quality standards.

Bricker added, “The aircraft are flying so many sorties over Iran and the Persian Gulf that parts are going to need to be replaced. They want us to expedite stuff.”

B&B derives about 80% of its sales from defense work and Bricker said he hopes to win bigger contracts by collaborating more with Accurate Industrial Machining, or AIM. The latter is run by his cousins, Bob and Donna Bricker.

August's father, together with Bob and Donna's father, started B&B in 1966. Bob and Donna's father then opened AIM in 1976. 

B&B will soon move to AIM’s 15,000-square-foot office and plant in Holbrook. 

AIM’s 15 employees primarily make parts for aircraft carriers and nuclear submarines. The work schedule is steady, but the pace will quicken because of the Iran war and the Pentagon's plan to replace aging naval vessels, said company vice president Bob Bricker, adding that about 95% of AIM’s sales come from defense contracts.

"I take pride in supporting our national defense," he said, "believing that strength helps deter conflict and ultimately leads to peaceful resolutions."

A shortage of workers

Key to the growth of AIM and other local defense manufacturers is the availability of skilled, younger workers to replace workers who began their careers in the Cold War and are now retiring in great numbers.

A shortage of workers combined with a need to modernize factories is a roadblock in the way of achieving President Donald Trump's goal of boosting the production of military hardware, said Katherine Thompson, a senior fellow in defense and foreign policy studies at the Washington-based think tank Cato Institute.

“There’s plenty of cash, there’s plenty of demand, but we don’t have enough people that are technically trained to do these jobs,” she said. “There needs to be incentives for kids coming out of high school to understand what the trade-school options are for them.”

Thompson, who worked in the Pentagon last year and in the U.S. Senate for six years, credited the second Trump administration with fueling greater demand for military equipment. The defense budget climbed to a record $1 trillion with the passage of the One, Big, Beautiful Act in July.

Trump has since proposed a 50% increase to $1.5 trillion in the next spending plan. He also has signaled that he will ask Congress for $200 billion to fund the war with Iran, which has already cost, by one estimate, between $16.2 billion and $23.3 billion. 

“The demand is going to be there for an extended period of time because we still have to sort out the replenishment of U.S. armaments to Ukraine, replenishment in terms of Iran, and preparations for a potential conflict with China,” she said, adding the DOD expects China to attack Taiwan next year.

“There are huge expectations that contractors may not be able to deliver on,” Thompson said. 

In an attempt to address the worker shortage, the Navy is helping to recruit more than 10,000 young people in six U.S. regions, including on Long Island, for the construction of a new class of nuclear submarines. More than 60 local job openings are listed on BuildSubmarines.com, which has been featured in advertising on the Long Island Rail Road.

Local manufacturers are talking with high school students and their teachers. CPI Aero and others run apprenticeship programs to support their workforce needs.

Need to prioritize orders

Another challenge facing the aerospace and defense industry is mixed signals from the DOD about which contracts are a priority.

“It’s unfair to place an exceptional amount of demand upon contractors and subcontractors without providing clarity on what the priority is. Are we replenishing because of Ukraine, China or Iran?” said Thompson, of the think tank.

DOD officials have acknowledged the obstacles to quickly boosting production of aircraft, ships, submarines and missiles.

“We’re going as fast as we possibly can,” Michael P. Duffey, undersecretary for procurement, testified before a House committee on March 4.

Long Island’s four House members said they are working to ensure that local defense contractors get a piece of the military spending pie.

“They are a major part of our economy,” said Rep. Tom Suozzi (D-Glen Cove). “We have no finished products anymore, but we make all these component parts.”

He and others recalled the legacy of Grumman Aerospace, Republic Aviation, Fairchild Aircraft and others on the Island who built planes used in World War II, Korea, Vietnam and the Cold War. Grumman alone employed more than 20,000 people on Long Island in the early 1980s, according to the Newsday archives.

Suozzi said firms in his district “are concerned” that they will miss out on the surge of new contracts. “So, we’re making sure that we’re supporting their efforts to be a part of whatever happens.”

CPI Aero, with a total workforce of more than 200 employees, manufactures a drag chute canister for the F-16 Fighting Falcon that helps slow down the jet during landing, and wing kits and aerial refueling probes for the E-2D Hawkeye aircraft. The 46-year-old public company also produces airborne pods that carry surveillance, reconnaissance and electronic warfare equipment on several fighter aircraft. 

CPI Aero reported a profit of $3.3 million in 2024 on revenue of $81.1 million. About 95% of the revenue came from defense contracts, according to the most recent annual report to shareholders.

Mulhall, the vice president, said, "We're anticipating organic growth through existing contracts as well as potential growth from new contracts from the surge [in defense spending] and ongoing conflicts."