A new congressional report accompanying the U.S. House Appropriations Committee’s fiscal 2026 defense budget recommends the creation of a nationwide network of dual-use factories. Under the proposal, the U.S. Department of Defense would establish a Civil Reserve Manufacturing Network (CRMN)—a system of facilities designed to produce commercial goods during peacetime and switch to weapons during times of conflict. These factories would rely on artificial intelligence (AI) and additive manufacturing (AM) to enable rapid, scalable production.
“The Department has an exceptional opportunity to scale advanced manufacturing technologies in a way that bolsters the defense industrial base and the broader American industrial base. A network of dual-use factories would have the ability, with the same tooling on the same day, to adaptively use metallic additive manufacturing for structural components required in ships, submarines, munitions, ground vehicles, aircraft, or spacecraft,” the report states.
A Scalable Industrial Backbone for Rapid Wartime Production
The CRMN is engineered to enable swift and seamless transitions between civilian and military manufacturing — all without the need for additional capital expenditures during production shifts. Lawmakers emphasize that this flexible model is essential to counter China’s accelerating industrial capabilities.
“The Committee is deeply concerned about the national security implications of China’s global manufacturing dominance. The ability of the People’s Republic of China (PRC) to scale and field systems quickly has highlighted the calcification of the United States defense acquisition system which struggles to deliver systems on time and on budget. Action is needed to immediately accelerate the Department’s adoption of commercially available artificial intelligence-driven additive manufacturing factories to preserve America’s military advantage.”
To launch the initiative, lawmakers propose allocating over $131.7 million from Army, Air Force, and defense-wide Research, Development, Test and Evaluation accounts. No funding for the Navy is mentioned. The report also instructs Defense Secretary Pete Hegseth to submit a detailed plan to Congress within 30 days of the budget’s enactment, outlining how the first CRMN facility will be certified by fiscal year 2026.
This plan will also detail how to shift current production methods to AM techniques that can scale efficiently. This will involve the government directly purchasing system hardware as “Government Furnished Equipment” (GFE) for integrators, along with enhanced government data rights to enable flexible expansion of the subcomponent supply chain and improve resilience.
The plan should also recommend ways to boost government efficiency, such as promoting AM through Federal Acquisition Regulation Part 48 to reduce costs without sacrificing performance, reliability, quality, or safety. Finally, it will identify legal barriers and suggest how to streamline the setup of the CRMN.
The Origins Behind the CRMN Initiative
The CRMN concept was originally introduced by Nathan Diller, CEO of Divergent Industries, who likened it to the Civil Reserve Airlift Fleet, a system that draws on commercial aircraft to support military logistics during emergencies. In his testimony to the U.S. Senate Armed Services Committee, Diller emphasized the importance of manufacturing agility.
“Every year taxpayers buy billions of dollars of weapons that are only used during war. It seems that there needs to be a clearer understanding that the factory is the weapon, and if we might need more factories for sustainment and war we should be buying that capacity now,” Diller said.
Diller warned that inaction could allow China to dominate emerging defense-related markets, much like it has with drones and other sectors. “If we miss this opportunity, however, there is a very high risk that in less than four years China will have consumed this market in the same way it consumed the global small drone market and many others. We will all be measured by the effort we took to avoid that potential tragic future,” he said.
Companies with Commercial and Defense Divisions
In the United States, several major aerospace companies already operate across both commercial and defense sectors—embodying the type of dual-use capability envisioned by the Civil Reserve Manufacturing Network (CRMN). One example is Boeing, which produces both commercial aircraft and advanced military systems.
In 2022, Boeing began integrating 3D printing into the production of its Wideband Global SATCOM (WGS) satellites for the U.S. Space Force, as part of a $605 million contract. The project focuses on building the WGS-11+, a next-generation communications satellite with enhanced mission support and anti-jamming capabilities. By incorporating additive manufacturing into the production workflow, Boeing aims to cut the satellite’s development time in half—reducing it from as long as ten years to just five. These satellites are intended to replace the aging Defense Satellite Communications System (DSCS) and offer dramatically higher data throughput to support modern military coordination.
Another key player is Divergent Technologies, recently selected to participate in the U.S. Air Force’s Eglin Wide Agile Acquisition Contract (EWAAC) — a $46 billion multi-award Indefinite Delivery/Indefinite Quantity (IDIQ) program designed to accelerate the development and deployment of next-generation weapons systems. At the center of this initiative is Divergent’s Adaptive Production System (DAPS) — a fully integrated manufacturing platform that combines AI-driven design, high-volume additive manufacturing, and robotic assembly. This technology enables faster, more scalable production of aerospace structures with superior performance, outperforming traditional methods.
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Featured image shows Divergent used its advanced processes to assemble a small Sparrowhawk UAS. Photo via Divergent.
