Is “Just in Time” Inventory Management Dead?

NPA Insights, October 2026

Hi all!

The looming deadline to secure US defense supply chains is sparking urgent calls to action: delays in reshoring printed circuit board (PCB) manufacturing leave American defense dangerously reliant on foreign technology. 

Industry leaders warn against widening loopholes or pushing back timelines, arguing that postponement entrenches risky dependencies and exposes the Department of Defense to unreliable components. Meanwhile, China and other Asian countries are rapidly scaling up investments in advanced PCB production for next-generation technologies. 

To counter this, the Pentagon must stay the course, finalize rules on time, and double down on incentives to reshore and rebuild this vital industry. Securing trusted microelectronics is paramount.  

With adversaries investing billions and every month’s delay putting national security at risk, the US must act now to restore control over its critical technology supply chain. 

The State of Manufacturing

The U.S. manufacturing sector expanded for the ninth consecutive month in September, following a 10-month period of contraction. The index registered 54.5%, a decline of 0.1 percentage point from August.

The New Orders Index expanded for the ninth consecutive month after four months of contraction, registering 55.3%; up 1.6 percentage points from August's 53.7%.

The Production Index read 56.7% in September, 1.6 percentage point below August's 58.3%.

The end of "just-in-time" (JIT) inventory is revealing new risks for high-tech manufacturers: lean procurement now risks shutting down entire production lines over missing small parts. Global supply chain disruptions and geopolitical tensions have turned efficiency into fragility. 

But "just-in-case" stockpiling isn’t the answer either, as excess inventory ties up cash and leads to costly obsolescence. The solution lies in strategic buffering: segmenting the bill of materials to identify low-risk commodity parts for JIT, while maintaining secure, dedicated safety stock for critical, long-lead components like custom ASICs. Contracts must evolve from transactional orders to risk-sharing agreements that secure capacity and buffer stocks near production. 

This requires a cultural shift across finance, engineering, and procurement to balance operational risk with cost. Without this balance, supply chains remain vulnerable, threatening profitability and timely delivery. Strategic buffering protects manufacturing and market share, building supply chains designed for real-world reliability. 

During Startup Boston Week 2026, founders discussed how they are using AI to help with pitch generation and investor matching. Check out how these Boston companies are leveraging AI:

Boston-based voice intelligence startup Modulate has raised $25 million in new funding for its platform that uses an array of small models for transcription, emotional analysis, deepfake and AI music detection, and policy enforcement for voice agents in regulated industries.

Vecna Robotics out of Waltham has raised $31 million to help serve the growing demand for flexible dock-to-dock automation in warehouses.

Tough Tech Week showcases groundbreaking science and engineering innovations through panels, pitches, workshops and more! It’s a prime opportunity to connect and shape the future of transformative technology. This year it’s taking place October 26-30 across the greater Boston area.

The Massachusetts Manufacturing Mash-Up is happening October 27th at Gillette Stadium. It creates space for hands-on engagement, industry connections, and exposure to emerging technologies shaping the future of manufacturing. Learn more here.

Boston's Product-Led Summit brings together leaders focused on building, scaling, and succeeding with a product-led approach. It's taking place October 27 and 28 in the Seaport. Get your ticket here.

OUR MONTHLY SURVEY

Based on the fragility of efficiency in global supply chains we noted above, we want to know:

Boston Dynamics unveiled the newest hand for its Atlas humanoid – it has 4 fingers and 13 degrees of freedom.

PinkiesUp

(Source: TheRobotReport)

Research suggests that riding in the front or back car of a rollercoaster is an effective way to help pass a kidney stone.

NotJustButterflies

(Source: Science)

It's Fat Bear Week in Alaska, the annual contest that pits the rotund residents of Katmai National Park and Preserve against each other for the title of most oversized ursine.

AllSalmonDietStartsNow

(Source: The Guardian)

Cheers,

Jurgen

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