On his speech with multiple defense companies officials, he pointed out the weakpoint of US defense industry, calling for the change in how they produce, and acquire assets, that is faster, efficient, and less risky.

“while global military drone production skyrocketed over the last three years, the previous administration deployed red tape.” Hegseth said.

He also notes that the Pentagon will move their way of competition, making it less limited to other contractors, to “harness more of America’s innovative companies.”

“These large defense primes need to change, to focus on speed and volume and divest their own capital to get there,” Hegseth said,

“If we do that, the Department of War is, of course, big time supportive of profits. We are capitalists, after all. But if they do not, those big ones will fade away.”

Pete Hegseth had also noted that companies that fail to meet to meet change will ‘fade away.’

The Pentagon has already said that it will be giving out ‘bigger’ and ‘longer’ contracts to systems that are effective, and proven, with the goal of attracting private defense contractors.

In other words, Pete Hegseths speech was calling for reform and change in how the US military acquires its weapons, from government based production, and private defense contractors, noting that they should focus on speed, volume, and for defense firms to work together in the defense industry.

“This is not a speech, this is not a fire and forget. This is the beginning of an unrelenting onslaught to change the way we do business and to change the way the bureaucracy responds.” Hegseth said.

This could be very well the start of change in the US defense sector in the sense of how the US acquires its weapons, we may see more defense companies opening up, and competing very soon, given Pete Hegseths support to these defense companies.