As geopolitical tensions continue to reshape America’s defense priorities, the Great Lakes region is emerging as one of the nation’s greatest strategic assets.
That was the message delivered by Patrick Kelly, CEO of Superior, Wis.-based Fraser Industries and Ryan O’Quinn, director of business development for Oshkosh Defense in Warren, Mich., during Defense Industry Day, an event hosted by the Illinois Mfg. Excellence Center (IMEC). Together, they made the case that the Great Lakes are far more than a commercial shipping corridor. The region represents one of America’s most overlooked strategic assets for defense manufacturing, shipbuilding and naval readiness.
“The Great Lakes aren’t simply a transportation corridor,” Kelly said. “They’re one of the largest concentrations of heavy manufacturing talent, steel production, machining expertise and industrial suppliers in the United States.”
“Shipyards don’t operate in isolation,” said Dan Hofmann, IMEC interim president. “Every vessel depends on thousands of manufacturers producing precision components, fabricated metals, electronics, automation systems, coatings, logistics solutions and specialized services. Illinois manufacturers are already part of those supply chains, and they have an opportunity to play an even larger role as the Department of Defense strengthens America’s industrial base.”
The data supports that assertion.
According to the Midwest Defense Accelerator, the Midwest is home to nearly one-third of the nation’s industrial workforce while producing 50 percent of America’s steel. The region also contains one of the country’s largest concentrations of aerospace, automotive, precision manufacturing and advanced metal forming companies, creating an industrial ecosystem uniquely suited to defense production.
The Great Lakes shipbuilding industry already generates significant economic impact. Five large shipyards and seven smaller dry dock and repair facilities are spread across the five lakes. The large yards can build ships that exceed three football fields in length.
Kelly cited U.S. Maritime Administration estimates showing Great Lakes shipyards support 11,630 direct jobs and $1.26 billion in annual GDP. When suppliers and supporting industries are included, the sector supports nearly 48,870 jobs and generates $5.69 billion in economic output while shipyards throughout the region service more than 700 commercial and government vessels.
Safer place to build
Kelly believes geography may become one of the Great Lakes’ greatest competitive advantages.
While many of America’s major naval shipyards sit on the Atlantic, Pacific and Gulf coasts, Wisconsin plants like Fincantieri Marine Group in Sturgeon Bay and Marinette and Fraser Shipyards in Superior operate more than a thousand miles inland. Yet they remain connected by rail, interstate highways and the Great Lakes navigation system, allowing vessels and materials to move efficiently throughout North America.
“Future conflicts won’t just test military capability,” Kelly said. “They’ll test America’s ability to manufacture, repair and sustain equipment quickly. The Great Lakes already have much of that industrial capacity.”
Fraser Industries notes that its Upper Midwest location offers direct access to rail, highways and the Great Lakes while providing a favorable location for government contracts and a strong union workforce supported by apprenticeship programs.
Existing supply chain
One of the more surprising statistics presented during Defense Industry Day was that the Great Lakes possess the second-highest concentration of U.S. Navy prime contractors among America’s four maritime regions.
Rather than building an entirely new defense ecosystem, Kelly argued the region has the suppliers, steel fabricators, machine shops, engineering firms and logistics companies necessary to scale production.
“Immediate value is created through an integrated supply chain,” Kelly noted. “The capability already exists.”
His vision extends beyond a single shipyard. Fraser Industries helped organize the Great Lakes Alliance of Shipyards, a coalition intended to pursue larger naval construction projects, expand modular shipbuilding and strengthen regional collaboration among Great Lakes shipyards from Pennsylvania and Ohio to Michigan, Illinois and Wisconsin.
Inland opportunity
O’Quinn said the Great Lakes cannot be viewed independently from America’s inland river system. The Mississippi River and connected waterways remain one of the country’s most important logistics networks for moving raw materials, military equipment and manufactured goods. Yet six bridge clearances along portions of the Illinois Waterway have only 18-ft. to 25-ft. clearances that prevent larger vessels from traveling between the Great Lakes and the Mississippi River system.
Those restrictions affect access to waterways that serve 38 states and transport nearly half of all U.S. commerce. Kelly argued that Illinois manufacturers and economic development agencies need to work closely with federal and state lawmakers to modernize those choke points. That would dramatically expand commercial and military logistics while improving national resilience, he said.
Ready-made naval network
Perhaps the most compelling argument involved naval maintenance.
According to Fraser Industries, 11 of the U.S. Navy’s 22 fleet classes could already transit the St. Lawrence Seaway into the Great Lakes for repairs, yet maintenance remains concentrated almost exclusively at coastal shipyards.
That concentration comes at a cost. A Government Accountability Office report cited during the presentation found repair delays approaching 100 days, creating bottlenecks that reduce fleet readiness. Expanding repair capabilities into Great Lakes shipyards could provide additional capacity while reducing pressure on existing coastal facilities.
“We already build vessels for every branch of the U.S. Armed Forces,” Kelly said. “We’re well-qualified to repair them, as well.”
Investment momentum
The timing may finally be right.
Kelly highlighted America’s Maritime Action Plan, which proposes investing hundreds of billions of dollars to rebuild America’s maritime industrial base. At the same time, the FY 2026 defense appropriations bill provides $27.2 billion for Navy shipbuilding, including additional destroyers, Virginia-class submarines and shipyard infrastructure improvements.
Those investments align with broader efforts to strengthen domestic manufacturing capacity and reduce supply chain vulnerabilities.
Pre-existing industrial base
Large manufacturers like Oshkosh Corp. demonstrate that the industrial foundation is in place. The Wisconsin-based company employs 18,500 people, operates 130 locations in 24 countries and generated $10.4 billion in revenue during 2025, serving defense alongside numerous industrial markets.
Companies like Oshkosh, combined with thousands of precision manufacturers, fabricators and suppliers throughout Illinois, Wisconsin, Michigan, Minnesota, Ohio and Indiana, illustrate the manufacturing depth available to support future defense production.
“The Department of Defense is investing in manufacturing capability,” Hofmann said. “Illinois has one of the nation’s most diverse manufacturing economies, and our small and mid-sized manufacturers have the expertise, agility and innovation to become indispensable partners in the defense supply chain.”
One role of IMEC is to provide technical expertise to help manufacturers build the operational excellence and capacity needed to compete for those opportunities, Hofmann noted.
More than a regional story
Kelly and O’Quinn believe the conversation is ultimately about national resilience.
The Great Lakes possess the skilled workforce, manufacturing infrastructure, steel production, transportation assets and supplier networks needed to support expanded naval construction and repair. What has been missing, they argue, is recognition that these inland assets should become an integral part of America’s long-term defense strategy.
As global uncertainty increases and the demand for industrial capacity grows, the Great Lakes may no longer be viewed simply as a commercial shipping corridor. Instead, they may become one of America’s most important strategic manufacturing advantages.
Illinois Mfg. Excellence Center
For more informative articles about everything from shipbuilding to steel service centers, click here and subscribe – it is free!
