Northrop Grumman chief executive Kathy Warden warned that labor shortages and supply chain bottlenecks are threatening the defense industry.

“When I think about the challenges that we all might face going into next year, the labor shortages that we’re seeing are suddenly one that’s top of mind,” Warden told CNBC’s Morgan Brennan during an interview. “We have seen an increase in demand for the kinds of skills that we need to support our work at the same time that we’ve seen labor participation rates go down.”

CNBC added:

Warden also expressed concerns about ongoing disruptions to the global supply chain, triggered in part, by the coronavirus pandemic.

Along with labor shortages, Warden said that the defense giant saw shipping delays and chip shortages during its third quarter, in alignment with rising infection rates due to the emergence of the Delta variant. When asked about the Omicron variant, Warden explained that the defense industry will adhere to a playbook developed over the course of the coronavirus pandemic.