This handbook sets forth a vision for the America’s defence manufacturing, including policies, technologies, systems, processes, practices and financial implications. Eight specific trends are forecast -defence spending, the relationship between defence and commercial industries, the nature of the threat to the nation, the emergence of new technologies, and other areas - and their implications for defence manufacturing are explored. The committee describes manufacturing advancements that are around the corner - virtual enterprise, and more - and examines how these breakthroughs will likely meet or fail to meet defence manufacturing requirements. The panel identifies the highest priorities and recommends strategies for matching future manufacturing capabilities with defence needs.