# 297: Defense Spending, Contract Manufacturing, and Navigating Regulated Industries with Fathom CEO Rush LaSelle

- Show: [Manufacturing Happy Hour](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour)
- Published: 2026-07-28
- Length: 50m
- Page: https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries
- Listen: http://manufacturinghappyhour.com

## Summary

Rush LaSelle, CEO of Fathom, discusses the challenges of scaling manufacturing capacity for the defense industrial base, noting that increased spending doesn't automatically create capacity due to a lack of long-term revenue visibility for suppliers. He explains how the acquisition of Kiva by Amazon for $775 million highlighted the importance of software integration in robotics and logistics, a lesson applicable to modern digital manufacturing. LaSelle also addresses the recent pause on CMMC Phase 2, describing the financial strain it places on manufacturers who have already invested heavily in compliance, and emphasizes the critical talent war for skilled machinists.

## Chapters

- [2:00](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries#t=120) Introduction and Fathom Overview
- [8:27](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries#t=507) Digital Manufacturing and Additive Evolution
- [11:18](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries#t=678) Career Background: Fanuc, Mobile Robotics, and Jabil
- [22:31](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries#t=1351) Defense Spending and Industrial Base Constraints
- [35:55](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries#t=2155) CMMC Phase 2 Pause and Compliance Challenges
- [41:12](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2026-07-28-297-defense-spending-contract-manufacturing-and-navigating-regulated-industries#t=2472) Talent War and Physical AI

## Topics

- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Hiring & workforce](https://hardwarepodcasts.com/topic/hiring-and-workforce)
- [Certification & compliance](https://hardwarepodcasts.com/topic/certification-and-compliance)
- [AI & machine learning](https://hardwarepodcasts.com/topic/ai-and-machine-learning)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)

## Most relevant to

companies scaling up

## Mentioned

- Fathom (company)
- Fanuc (company)
- Kiva (company)
- Amazon (company)
- Jabil (company)
- Swisslog (company)
- Hexagon Manufacturing Intelligence (company)
- CMMC (other)
- DIU (company)
- Lockheed Martin (company)

## Related episodes from other shows

- [The Dirty Little Secret of Digital Manufacturing: Why People Still Matter w/ Rush LaSelle](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2025-11-11-the-dirty-little-secret-of-digital-manufacturing-why-people-still-matter-w-rush) (The Manufacturing Executive)
- [Scaling Additive Manufacturing — Special IMTS Edition](https://hardwarepodcasts.com/podcast/additive-snack/2023-01-10-scaling-additive-manufacturing-special-imts-edition) (Additive Snack)
- [From Acquisition to Achievement: The InCap US Manufacturing Journey with MD Dave Spehar](https://hardwarepodcasts.com/podcast/ems-c-level/2025-05-26-from-acquisition-to-achievement-the-incap-us-manufacturing-journey-with-md-dave) (EMS@C-LEVEL)
- [Amazon to acquire iRobot; Robotics at DHL with Sally Miller](https://hardwarepodcasts.com/podcast/the-robot-report-podcast/2022-08-05-amazon-to-acquire-irobot-robotics-at-dhl-with-sally-miller) (The Robot Report Podcast)
- [Cyber Security in Manufacturing w/ Jason Ray](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2023-04-11-cyber-security-in-manufacturing-w-jason-ray) (The Manufacturing Executive)

## Citing this page

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