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Defense Industry Day Breakout Session Highlights Succession Planning as a Critical Manufacturing and National Security Priority

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At IMEC’s Defense Industry Day, industry leaders gathered for a timely breakout session, “The Succession Cliff is Coming: How Companies Can Prepare,” to discuss a growing challenge facing America’s manufacturing and defense supply chains: the retirement of business owners and the lack of succession plans for many small and mid-sized manufacturers.

Moderated by Hannah Loftus of World Business Chicago, the panel featured Mark Piekos of the McHenry County Economic Development Corporation, Christa Madison of Xartis, and Alexander Nadtochiy of General Assembly and the IMEC Board of Directors. Together, they explored the risks associated with ownership transitions and the steps companies can take to ensure long-term stability and growth.

The discussion highlighted the significant role small and medium-sized manufacturers play within the U.S. defense industrial base. With more than 100,000 companies supporting defense supply chains nationwide and many founder-led businesses approaching retirement, panelists emphasized that the loss of ownership without a transition strategy can jeopardize decades of technical expertise, customer relationships, and production capacity. In Illinois alone, manufacturing remains a cornerstone industry, yet an aging ownership and workforce demographic presents increasing challenges for business continuity.

Panelists stressed that succession planning is more than a business concern. For defense-related manufacturers, it is increasingly a matter of economic resilience and national security. Ownership transitions that are poorly planned or delayed can disrupt supply chains, reduce supplier diversity, and impact the nation’s ability to maintain critical manufacturing capabilities.

Moderated by Hannah Loftus of World Business Chicago, the panel featured Mark Piekos of the McHenry County Economic Development Corporation, Christa Madison of Xartis, and Alexander Nadtochiy of General Assembly during IMEC’s Defense Industry Day at the Embassy Suites Chicago (Naperville) on June 16, 2026.

The session also focused on practical strategies manufacturers can implement today, including beginning succession planning years in advance, developing future leadership pipelines, documenting critical institutional knowledge, and exploring ownership transition models such as employee ownership, ESOPs, management buyouts, and family succession. Panelists noted the importance of partnerships among manufacturers, economic development organizations, capital providers, and government agencies to support successful transitions and preserve strategic industrial assets.

A recurring theme throughout the discussion was the need for proactive action. By addressing succession challenges before owners are ready to exit, manufacturers can strengthen workforce continuity, maintain customer confidence, and ensure the long-term viability of businesses that play a vital role in regional economies and national defense.

The breakout session reinforced that succession planning is no longer simply an ownership issue. It is a strategic business imperative that will shape the future strength, competitiveness, and resilience of America’s manufacturing sector for years to come.