Indiana, a well-known powerhouse for industries like health sciences and technology, is rapidly emerging as a leader in another industry. The state’s strategic position, strong infrastructure, and rising talent are fueling new opportunities in the nation’s defense sector.
In the last five years, several developments around the state have made headlines as companies and organizations announce plans to bring research, innovative defense technologies, and operations to Indiana. At its heart is a goal to recognize Indiana as a national security and defense hub, supporting the military facilities around the world and those located in Indiana, including the third-largest naval installation in the world – Naval Surface Warfare Center (NSWC), Crane Division.
In 2023, Indiana University (IU) announced plans to invest $111 million in microelectronics and nanotechnology in support of defense needs in addressing security challenges. The following year, IU and two other leading Indiana research facilities – Purdue University and the University of Notre Dame -- formed a partnership to position Indiana as a hub for defense studies through the Indiana Research Consortium.
U.S. Department of Defense supplier Conco’s move into Indiana in 2023 further strengthened the state’s work with the armed forces with an ammunition manufacturing facility. In March 2025, the Indiana Economic Development Corporation announced that technology company Kratos Defense and Security Solutions, headquartered in San Diego, will build a facility in Indiana dedicated to advancing national security through aerospace solutions. Many other companies have made similar commitments in the state.
Positioned for More
As Indiana continues its dynamic climb to becoming a major defense industry hub, the state is positioned well for future investments that could come from the One Big Beautiful Bill. Passed by the federal government in July 2025, the bill includes an unprecedented $150 billion increase in defense spending.
The increase in funding will strengthen munition manufacturing and resupply, scale new technologies like nanoelectronics and autonomous platforms, and move forward with AI-driven defense systems.
In a press release, Sen. Jim Banks (R-Ind.) outlined where that funding will boost Indiana’s place in the defense industry, including hundreds of millions for a MACH-TB hypersonics testing program run out of NSWC Crane and Fort Wayne-made space-based sensor satellites.
“NSWC Crane and Indiana will benefit from major new investments in hypersonics, missile defense, and advanced weapons systems,” Banks noted in the release.
Get Ready
As defense support in Indiana has been developing over the last decade, several initiatives are already in place to ensure that manufacturers and other businesses are ready to respond to the need and that there is enough talent to handle the workforce load.
In the fall of 2024, Regional Opportunity Initiatives (ROI) announced that the organization secured a $9.6 million contract from the Department of Defense to boost microelectronics education and workforce development throughout 11 counties in Indiana. The initiative will establish training pipelines, industry awareness programs, certifications, apprenticeships and a regional training hub.
Matt Kavgian, executive director of the Indiana Economic Development Association (IEDA), said in an earlier interview that while the defense industry isn’t new in the state of Indiana, as its role continues to grow, it is a major goal of IEDA to develop a strategy that supports small and medium-sized businesses in their ability to contribute effectively.
“It is sometimes difficult for companies in the private sector to navigate that world. It is full of acronyms and processes that operate differently than they do in the private business industry,” he said. “We would like to see more strategy in helping our small and medium-sized businesses learn how to play in that space, be effective, and be attuned to national security areas. This is especially important for areas where we are already strong, like advanced manufacturing, bioscience, and even agriculture. It’s a huge untapped avenue for them.”
