The survival of America’s defense industrial base hinges not on giant conglomerates but on small precision manufacturers—75% of which have fewer than 20 employees. John Gardner, an author, manufacturing expert and WarRoom guest, calls for immediate reforms: targeted tariff carve-outs, a Pentagon-backed loan program, and executive-level prioritization of small shop revitalization. With President Trump backing these efforts, action must replace rhetoric.
In a blistering WarRoom segment, Gardner exposed the quiet crisis threatening America’s industrial backbone—and by extension, national security. Contrary to popular belief, it’s not the Lockheeds and Boeings that hold up the arsenal of democracy, but the 252,000 precision manufacturing firms scattered across the U.S.—most with 50 or fewer employees.
"These are the guys who make bevel gears and mission-critical cutting tools,” Gardner told Steve Bannon. "Without them, the Pentagon is flying blind.”
Action Points from Garner and Bannon:
Targeted Tariff Carve-Outs for Machine Tools
Gardner explained that European machine tools—necessary for high-tolerance military parts—are getting hit with the same tariffs as consumer goods. One 5-axis mill shot up from $400K to $526K due to tariffs.
Call to Action: President Trump should issue an executive order to temporarily remove tariffs on European precision machine tools while maintaining tariffs on Chinese components.
Launch a Defense Industrial Base Loan Program
Despite selling to NASA, SpaceX, and the U.S. Navy, Gardner was denied SBA loans by three banks. Why? Because small firms don’t have predictable cash flow—especially when prime contractors like Lockheed pay on 120-day terms.
Call to Action: Create a Pentagon-backed "Defense EIDL” loan program for precision shops—similar to COVID’s EIDL—but tied to national security, not disaster declarations.
Separate Manufacturing from Retail in Federal Policy
Gardner emphasized that manufacturing needs to be treated as a national security priority, not just another economic sector. While tech startups and consumer products get love from the media and banks, the people making parts for missiles and aircraft are being ignored.
Call to Action: Pass legislation or issue a directive to carve out manufacturing-specific SBA guidelines, removing "one-size-fits-all” rules that hurt job shops and precision outfits.
Fill the Supply Chain with "Filler Work”
High-end semiconductor fabrication isn’t enough. Gardner argues that cheap, low-margin filler jobs (like parts for Dollar General products) keep the lights on for small shops waiting on larger defense payouts.
Call to Action: Shift procurement policies to include low-end, high-volume contracts for small vendors to stabilize income and cash flow.
Why It Matters, according to Bannon and Gardner:
When the Navy tried to restart torpedo production after a 20-year pause, it took them two years just to relearn how. That’s because the human capital and tool paths disappeared with the small shops that were starved out by bad policy, banking bias, and tariff mistakes. "We don’t just lack tools—we lack people who remember how to use them,” Gardner warned.
Suppose President Trump wants to secure America’s economic and military future. In that case, he must ignite a manufacturing revolution from the ground up, starting with policies that put capital, contracts, and respect back into the hands of the shops that never stopped building.
Bottom Line: America needs a wartime footing for small manufacturers.
John Gardner’s contact points as mentioned in the interview with Steve Bannon are:
Social Media:
X (formerly Twitter): @JohnGardnerVOH
Instagram: @JohnGardnerVOH
GETTR:
Personal: @JohnGardnerVOH
Business: @MFGGearOfficial
Book Information:
Title: Manufacture Local: How to Make America the Manufacturing Superpower of the World
Available at:
Amazon
Walmart
Barnes & Noble
These platforms are where he shares updates on:
Manufacturing policy proposals
External Revenue Service developments
Defense industrial base advocacy
Tools and insights for small manufacturers
Watch this segment for the whole discussion:
