Memorial Day is a natural time to recognize the service of U.S. veterans. For purchasing and sourcing professionals, it's also a good moment to take a closer look at a segment of the industrial supply base that tends to get overlooked in day-to-day procurement decisions: verified veteran-owned suppliers.
The case for sourcing from these companies goes beyond goodwill. There are federal contracting implications, supplier diversity benefits, and data-backed quality signals that make veteran-owned suppliers worth identifying and tracking in your approved supplier list.
What "Veteran-Owned" Actually Means
Two federal designations apply to veteran-owned businesses. A Veteran-Owned Small Business (VOSB) is at least 51% owned and controlled by one or more U.S. military veterans. A Service-Disabled Veteran-Owned Small Business (SDVOSB) carries the same ownership requirement, with the additional condition that the controlling veteran holds a service-connected disability rating from the VA.
Both certifications are now issued through the SBA's VetCert program, which eliminated self-certification in 2024 and currently processes applications in an average of 12 days. That's a meaningful change for procurement teams that need to verify supplier status quickly: the certification is now standardized, searchable, and issued by a single federal authority.
The distinction between VOSB and SDVOSB matters because it affects what your organization can count. Purchases from certified suppliers contribute to supplier diversity reporting, and for companies that work as prime contractors on federal projects, they can apply toward your SDVOSB subcontracting goals.
The Federal Contracting Angle
If your company holds or competes for federal contracts, sourcing from certified veteran-owned suppliers carries direct strategic value. Under the National Defense Authorization Act for FY2024, the federal government increased its SDVOSB spending target from 3% to 5% of all prime and subcontract dollars annually. In FY2023, agencies already hit that number, awarding $31.9 billion to SDVOSBs. The Department of Veterans Affairs goes further, setting aside at least 7% of its own contracts for certified VOSBs and SDVOSBs through its Vets First Contracting Program.
For companies in the defense supply chain or building toward federal contracting, working with certified veteran-owned suppliers strengthens your own subcontracting compliance posture. It is also worth noting that 14 states currently operate their own veteran-owned set-aside programs, which creates similar considerations for state and local government suppliers.
What the Data Shows
Beyond compliance, there is a performance and stability argument. MNI, compiler and publisher of the industrial data that powers IndustryNet, tracks verified profiles of veteran-owned industrial companies across the country. That data presents a picture of an established, export-capable segment of the U.S. industrial base.
MNI has tracked 1,200+ veteran-owned industrial businesses across the U.S., employing more than 31,300 workers. A few figures stand out as particularly useful for sourcing decisions:
The average veteran-owned industrial company is 42 years old. That kind of longevity reflects companies that have survived multiple economic cycles, not startups with short track records.
Nearly 15% of these firms hold ISO certification, a formal quality management credential that requires ongoing audits and documented process controls. That rate compares well against the broader industrial supplier population.
Forty percent export internationally, which indicates supply chain discipline, quality standards that meet international requirements, and the operational capacity to serve demanding customers.
The diversity profile of this segment is also worth noting for organizations with layered supplier diversity goals. Six percent of veteran-owned industrial firms are also women-owned, compared to 2% of manufacturers overall. Seven percent are minority-owned, compared to 1% overall. For procurement teams managing multiple diversity reporting requirements, these overlapping designations can be useful.
Leading industries among veteran-owned manufacturers include industrial machinery, fabricated metals, and printing and publishing.
How to Find Them on IndustryNet
IndustryNet includes a veteran-owned filter that works across all 11,000+ product and service categories on the platform. If you are building a supplier diversity program, expanding your qualified supplier list, or specifically sourcing for projects with federal contracting implications, the filter makes it straightforward to identify verified veteran-owned suppliers by category. Set up your free account today.
List Your Veteran-Owned Business
For veteran-owned manufacturers looking to maximize their brand’s reach, IndustryNet provides a unique platform to connect directly with potential buyers. Enhanced listings on IndustryNet can boost your visibility and credibility, making it easy for buyers to find your contact information and learn about your offerings. IndustryNet’s sponsored content options also allow you to showcase your expertise and thought leadership, keeping your business top of mind for future purchasing decisions.
By listing with IndustryNet, veteran-owned businesses gain a competitive edge through targeted exposure to a highly qualified audience of industrial buyers and procurement professionals. Learn more about how IndustryNet can help you succeed.
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