Hadrian’s Factory-as-a-Service Model Offers Defense Contractors such as Lockheed Martin a New Way to Ramp Up Production

In December 2025, Lockheed Martin signed a Memorandum of Understanding (MoU) with Hadrian to establish its factory-as-a-service model at one of the company’s Missiles and Fire Control site. Hadrian will support the production of parts for the company’s PAC-3 MSE®, THAAD, PrSM, and GMLRS products at Lockheed’s facilities. Hadrian’s factory-as-a-service model looks to improve the alignment between machinists, software, and the workflows required to produce parts for defense equipment such as missiles, satellites, jets, and drones. The company claims it can cut production times from months to weeks.

Geopolitical tensions continue to intensify, and governments are looking to defense contractors to be ready. Both influence large contractors to re-examine their workflows and processes, providing opportunities for small technology firms to support the endeavors.  

California-based Hadrian was founded in 2020 and, since that time, has been refining its factory-as-a-service model. Currently, the model operates as follows with the firm receiving design prints for the part and Hadrian’s software analyzing the drawing and design blueprints (Designed for Manufacturing (DFM)); then the Computer-Aided Manufacturing (CAM) automation software generates the codes and instructions for producing the item; and the company’s Opus Enterprise Resource Planning (ERP) software then orchestrates the component supply and workflows on the production floor. Hadrian will utilize the precision machining capabilities of Computer Numerical Control (CNC) machines allied with Artificial Intelligence (AI)-driven systems that are embedded in the Coordinate Measuring Machines (CMMs). Production operations are further supported by robotic arms aligned with Automated Material Handling that queues the work for them and the CNC machines. Hadrian adopts a usage-based pricing model that is based on the complexity, volume, and materials for each precision part that is required.

The factory-as-a-service model is delivered either at a client’s facilities or from Hadrian’s facility in Torrance, California. The company is due to open another facility in 1Q 2026 in Mesa, Arizona with funding secured for more.

ABI Research’s Technologies to Support Aerospace Manufacturers in Ramping up Production report (AN-6484) outlined the issues faced by the aerospace and defense industry with regard to ramping up production to meet orders. One of the challenges is how to successfully implement new technologies without compromising delivery schedules. Partly outsourcing the production of components via partnerships with smaller nimbler firms makes sense for behemoths such as Lockheed Martin.

Hadrian’s model is a fit not only in that the company takes on responsibility for production of vital parts but also that the sensitive work does not leave Lockheed’s facilities. The factory-as-a-service model stands a good chance of success as Lockheed Martin makes extensive use of digital twins that include both products and factory operations (see ABI Research’s Digital Transformation Benchmarking Index for Large Aerospace and Defense Manufacturers presentation (PT-3777)); and so can readily transfer the design blueprints to Hadrian.

The conflict in Ukraine has exposed the need for governments to increase their defense budgets and the need for defense contractors to fulfill the needs of their government customers, also presenting the opportunity for technology providers to help their customers win the arms race. Large defense contractors do not have the time available nor the financial resources to innovate in isolation, so 2026 will witness more collaborations between contractors and technology firms.