# U.S. defense industry missile production shift > Live situation record from CLSTR: https://clstr.news/situations/us-defense-industry-missile-production-shift > Updated: 2026-08-17T11:45:17.000Z. Sources: 4. Developments: 2. Major U.S. defense firms are shifting strategies toward the development of more affordable and faster-to-produce interception munitions. This pivot follows a significant depletion of air defense stocks, with data from the Center for Strategic and International Studies indicating that U.S. Patriot missile stocks decreased by approximately 65%, falling from roughly 2,330 units to 800. The high cost of advanced interceptors, such as the PAC-3 MSE, has made sustained use in high-intensity combat environments difficult. To address these readiness concerns, Boeing has entered into seven-year framework agreements with the U.S. Department of War and Raytheon to increase production of critical hardware for the Standard Missile-3 (SM-3). These agreements focus on boosting the output of avionics and ejector assemblies for both the Block IB and Block IIA variants used in the Aegis Ballistic Missile Defense System. This initiative aims to stabilize supply chains and strengthen missile defense capabilities for the U.S. and its allies. ## Timeline ### 2026-08-17: Boeing to increase Standard Missile-3 hardware production Boeing has signed seven-year agreements with the US Department of War and Raytheon to increase production of critical hardware for the Standard Missile-3 anti-ballistic missile system. 2 sources. https://clstr.news/cluster/boeing-to-increase-standard-missile-3-hardware-production ### 2026-08-15: U.S. defense firms pivot to cheaper missile production U.S. defense firms are developing cheaper, faster-to-produce missiles to replenish depleted air defense stocks, including new agreements to accelerate SM-3 production. 2 sources. https://clstr.news/cluster/us-defense-firms-pivot-to-cheaper-missile-production --- Cite as: U.S. defense industry missile production shift. CLSTR, https://clstr.news/situations/us-defense-industry-missile-production-shift