Why Defense Contractors Should Be Learning to Do More With Less
The newly announced 10% import tax on all goods has shaken some businesses’ confidence and injected uncertainty into a tense economy. Defense contractors specifically, are likely already feeling the impacts. Costs of goods are rising, planning cycles are shrinking and many companies are pulling back on expenditures. However, even amid this economic unrest, defense missions don’t pause. Contractual obligations remain in place, military readiness must be maintained and program timelines continue to move forward. The challenge, though, is clear: how do organizations meet growing demands with fewer resources, smaller teams and constrained budgets? The answer isn’t “cut back,” it’s “get smarter.” By investing in adaptable, purpose-built software tools and reevaluating workflows, defense contractors can learn to do more with less.
The New Normal
Over the last few months, trade tensions have risen as an almost universal tariff has been placed on all imported goods. Now, defense contractors are facing new threats: increasing material costs due to import taxes, budgetary uncertainty driven by delayed government appropriations and a broader economic slowdown prompting companies to freeze planned investments. These aren’t all happening in real-time. Large manufacturers are being forced to rethink supplier relationships and subcontractors are scrambling to find cost-effective alternatives for parts and components sourced overseas. All the while, decision-makers are being told to stretch current resources further, often without clear visibility into next year’s funding.
This environment has created what some call “planning paralysis.” Long-term initiatives are being shelved, discretionary spending is on hold and teams are being asked to continue to deliver outcomes without new tools or staff increases. This problem is compounded by many relying on outdated systems or manual workflows that don’t scale under pressure. Market volatility likely isn’t going away anytime soon, so waiting it out isn’t a viable strategy. Therefore, contractors must find ways to maintain performance, ensure compliance and reduce operational drag while navigating unpredictability.
Why Doing More With Less Isn’t Just a Slogan
The phrase “doing more with less” gets thrown around a lot in times of uncertainty, but in defense contracting right now, it is a survival strategy. Though there’s a risk that it gets misinterpreted. In this context, “less” doesn’t mean cutting back until performance suffers, it means reassessing what adds value and removing the inefficiencies that consume time and resources without moving the mission forward. For contractors, this could mean rethinking how teams are staffed, how projects are tracked and where communication breaks down between departments or individuals.
The key to combatting this is shifting from a cost-cutting mindset to a capability-focused one. This is a methodical process that requires analysis and planning. Organizations that focus only on slashing budgets risk cutting away the infrastructure they need to operate effectively. However, those who embrace operational optimization such as streamlining workflows, automating redundant tasks and re-prioritizing deliverables, often find they can meet objectives more efficiently than they thought. The good news? These improvements don’t always require a heavy lift! Often, it’s about tweaking existing tools, improving training or implementing light-touch solutions that reduce admin burdens.
Smarter Workflows in a Smaller Footprint
With hiring freezes and tighter budgets becoming the norm, organizations are realizing that adding more people isn’t a long-term solution… adding more capability is. Smarter workflows are about designing systems that anticipate delays, surface risks early and adapt dynamically when priorities shift. A lean team can outperform a larger one if the right tools surface key insights at the right time. This includes automating compliance tracking, standardizing reporting across contract vehicles and linking unlike systems to reduce data re-entry and duplication.
Traditionally, a program management team responsible for coordinating multiple subcontractors on a large delivery would involve several layers of manual check-ins and individually managed spreadsheets. But with an integrated project management platform, teams can see who is on track, who is falling behind and how those changes affect larger milestones in real-time. The end goal is to build processes that moves faster because the friction points have been engineered out.
Software as an Efficiency Enabler—Not a Silver Bullet
There’s a tendency to view software as a one-size-fits-all solution to operational problems, but that can be a dangerous thought. Not all software is created equal, and not all fit the specific regulatory and operational demands of defense contracting. The goal shouldn’t be to throw new tools at old problems but to identify where the right kind of software can augment existing processes, provide data-driven insights and improve consistency. For example, contract lifecycle management systems can help ensure on-time delivery and reduce non-compliance risks. Project management tools built for the defense space can improve visibility into tasks, dependencies and budget consumption, which is especially critical for programs that span multiple years.
What separates helpful software from wasted investment is the implementation that understands the mission. Contractors don’t need bells and whistles for the sake of having them, they need platforms that work with their existing workflows. That’s where a trusted partner like Odyssey DCS becomes invaluable. With deep roots in the defense industry, we help organizations apply software solutions in practical, scalable ways that drive actual performance improvements.
Conclusion
The economic uncertainty triggered by sweeping tariffs and budget delays is already reshaping how defense contractors operate. But amongst the volatility, a clear path is visible, organizations that invest in smarter workflows and purpose-driven tools today will be best positioned to execute tomorrow. “Doing more with less” isn’t about sacrifice, it’s about strategy. With the right systems in place and the right partners in your corner, it’s possible to adapt and thrive in these tumultuous conditions.
Curious to find out more? Please contact us to schedule a demo and see how Odyssey DCS solutions can provide a path in this uncertain time!