Siemens Wins $80 Million Award for Advanced Army Manufacturing

Siemens Government Technologies Secures $80 Million Army Award to Modernize Advanced Manufacturing for Unmanned Aircraft Systems

Siemens Government Technologies (SGT), Inc. has secured an $80 million award from the U.S. Army Contracting Command to develop an integrated digital and physical advanced manufacturing environment designed to support U.S. Army-controlled production of electric motor stator assemblies for unmanned aircraft systems (UAS).

The 12-month project represents a significant step in the Army’s efforts to modernize its manufacturing capabilities and strengthen control over the production of critical components used in next-generation unmanned aircraft. Under the agreement, SGT will combine digital engineering, advanced manufacturing technologies, artificial intelligence-enabled digital twins, energy resilience and smart infrastructure to transform an existing World War II-era facility into a modern advanced manufacturing hub.

The initiative is designed around a “born digital” philosophy, in which the manufacturing environment is digitally modeled, simulated and optimized before physical production infrastructure is installed. This approach is intended to reduce development risks, improve production efficiency and enable the Army to establish a flexible manufacturing capability capable of adapting to evolving requirements.

Transforming an Existing Facility Into a Modern Manufacturing Hub

At the center of the project is the conversion of an older manufacturing facility into a digitally connected production environment capable of supporting the Army’s organic manufacturing requirements.

Rather than approaching modernization solely as a physical construction or equipment installation project, Siemens Government Technologies will take a holistic approach spanning the digital and physical environments. The company will create an integrated digital production environment that uses detailed digital twins to model manufacturing processes, equipment and production lines.

These process-rich digital twins will provide a virtual representation of the proposed manufacturing environment. Engineers will be able to use the digital models to evaluate processes, identify potential issues, optimize production layouts and validate manufacturing concepts before physical systems are installed.

The approach could significantly reduce the time and resources associated with trial-and-error commissioning. Production lines can be digitally evaluated and refined before workers begin physically assembling equipment, allowing the Army to make more informed decisions about manufacturing infrastructure.

SGT described the concept as effectively validating optimal stator assembly production lines and digitally connected advanced manufacturing elements before a single bolt is turned.

Supporting Unmanned Aircraft System Production

The project focuses specifically on the production of electric motor stator assemblies for unmanned aircraft systems.

Electric motors are important components in many unmanned aircraft platforms, particularly those requiring compact, efficient and reliable propulsion systems. The stator is a fundamental component of an electric motor, interacting with the rotor to generate rotational motion.

By establishing an Army-controlled manufacturing environment for stator assemblies, the project is intended to strengthen the government’s ability to manage production of critical UAS components.

The capability could provide greater flexibility for future manufacturing requirements while reducing reliance on external production sources for certain components. It also provides an environment in which the Army can develop and maintain internal expertise in advanced manufacturing processes.

As unmanned aircraft systems become increasingly important to defense operations, the ability to rapidly manufacture, modify and sustain critical components can become an important element of military readiness.

Digital Twins at the Core of Manufacturing Modernization

One of the defining elements of the project is Siemens’ use of AI-driven digital twins and digital engineering technologies.

Digital twins allow organizations to create virtual representations of physical systems and use those models to understand how equipment and processes are expected to operate. In an advanced manufacturing environment, digital twins can extend beyond individual machines to represent entire production lines and manufacturing workflows.

For the Army, this approach could provide a more comprehensive view of manufacturing operations before physical deployment.

Production processes can be evaluated digitally, helping engineers understand how equipment, materials, workers and manufacturing steps interact. Potential bottlenecks can be identified and changes can be tested virtually before being introduced into the physical facility.

This digital-first approach is also intended to improve the ability to adapt manufacturing infrastructure over time. As requirements change, digital models can help engineers evaluate modifications and determine how new equipment or processes could be integrated into the existing production environment.

Flexible and Modular Advanced Manufacturing

The manufacturing environment being developed by SGT is intended to be flexible and modular, allowing it to evolve alongside the Army’s requirements.

Traditional manufacturing facilities can be difficult and expensive to modify when production requirements change. A modular advanced manufacturing environment, by contrast, can be designed with flexibility from the outset.

Digitally connected manufacturing elements can allow production capabilities to be reorganized or expanded as new requirements emerge. This flexibility is particularly relevant to defense manufacturing, where production requirements can change in response to new technologies, operational needs and emerging threats.

The project therefore goes beyond modernizing an individual production line. It aims to establish a manufacturing environment capable of supporting continued innovation and adaptation.

Integrating Safety, Power and Energy Resilience

A modern manufacturing facility must also have reliable infrastructure capable of supporting continuous and secure operations. SGT said the project will incorporate safety, power and energy resilience into the advanced manufacturing environment.

The company brings experience from a range of Army infrastructure modernization projects involving fire and life safety systems, on-site energy generation, energy storage, distributed power and electrical interconnection technologies.

These capabilities are expected to support the physical infrastructure required for the new manufacturing environment.

Energy resilience can be particularly important for defense manufacturing facilities, where interruptions to power supplies can affect production, equipment and operational continuity. Incorporating distributed energy and energy storage technologies can provide additional flexibility and resilience.

Similarly, fire protection and life safety systems are critical elements of manufacturing environments involving industrial equipment, electrical systems and complex production processes.

By integrating these capabilities into the manufacturing modernization effort, SGT aims to establish an environment that combines production efficiency with operational resilience and safety.

A “Whole of Siemens” Approach

John Ustica, president and CEO of Siemens Government Technologies, described the project as an example of what he called a “whole of Siemens approach” to addressing an urgent priority for the U.S. Army.

According to Ustica, giving the Army greater control over its own production and manufacturing environment can help accelerate organic expertise and innovation related to the development and sustainment of next-generation unmanned aircraft systems.

The project combines multiple technology areas, including digital engineering, advanced manufacturing, artificial intelligence, infrastructure modernization and energy resilience.

This integrated approach reflects the increasingly interconnected nature of modern manufacturing. Production equipment alone is no longer sufficient to create a highly capable manufacturing operation. Advanced facilities increasingly depend on software, data, connectivity, energy systems and digital engineering to achieve optimal performance.

Strengthening U.S. Defense Manufacturing Capabilities

The $80 million award comes as the U.S. defense sector continues to emphasize manufacturing resilience and domestic control over critical production capabilities.

Unmanned aircraft systems have become an increasingly important area of military technology, creating demand for scalable production and sustainment capabilities. Establishing advanced manufacturing environments under direct Army control can provide greater flexibility in managing critical component production.

The Siemens project could also contribute to the development of internal manufacturing expertise. By combining digital models with physical production systems, Army personnel can gain experience with modern manufacturing processes and technologies.

The resulting environment is expected to support not only current production requirements but also future innovation and sustainment activities.

Siemens Government Technologies’ Federal Mission

Siemens Government Technologies is the wholly owned, cleared U.S. subsidiary of Siemens Corporation. The organization focuses on delivering technologies and solutions to federal customers supporting critical national missions.

SGT integrates Siemens products, software, technologies and services across areas including digital engineering and modeling, energy efficiency and resilience, and smart infrastructure modernization.

Its experience across these areas positions the company to undertake projects that require coordination between digital systems and physical infrastructure.

With the new Army award, Siemens Government Technologies will apply these capabilities to one of the most important areas of modern defense manufacturing: creating a digitally enabled, flexible and resilient production environment for unmanned aircraft system components.

Over the 12-month performance period, SGT will work to transform the legacy facility into a 21st-century advanced manufacturing hub. By using digital twins and a digital-first methodology to optimize production before physical implementation, the company aims to help the Army reduce manufacturing risks, improve efficiency and establish greater control over critical production capabilities.

The project ultimately represents a broader shift in defense manufacturing—from aging, conventional production environments toward digitally engineered, connected and resilient facilities capable of adapting to the demands of next-generation military systems.

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