Establishing a close, long-term cooperative relationship with international defense contractors is an effective way to secure the supply and availability of critical technologies. For that reason, industrial participation is seen as a way to develop and maintain production, technology and expertise, so that critical defense products and services can continue to be produced under emergency conditions.

Local industrial participation (LIP) programs will more frequently become a requirement – even a prerequisite – for suppliers seeking to participate in foreign sales. Putting an LIP program in place can be challenging. Partnering with a supplier that is familiar and experienced in these challenges can be an important asset, for both prime contractor and customer, during contract negotiations.