June 3, 2020 | International, Aerospace
Steve Trimble May 27, 2020
This was supposed to be a relatively easy year for Lockheed Martin's F-35 production. As 2020 began, the stealth fighter program's three-year growth spurt had subsided after annual deliveries more than doubled between 2017 and 2019. Lockheed planned to deliver 141 F-35s in 2020, only seven more than in 2019.
But the F-35 supply chain is not immune from the global disruption caused by the COVID-19 pandemic. After signaling during a first quarter earnings call in April that a production slowdown was likely, Lockheed confirmed the impact on May 19. The company issued a new forecast of 117-124 F-35 deliveries this year. If Lockheed is unable to recover in the second half, the slowdown would mark the first year-over-year decrease in F-35 deliveries since the program began.
“However, we will accelerate production when we return to pre-COVID-19 conditions and could see this number decrease,” the company says.
The company's new financial guidance reflects the lower F-35 delivery total, with net sales for the year falling to a range of $62.25-64 billion from $62.75-64.25 billion. Other large F-35 suppliers include Northrop Grumman (center fuselage, radar), Raytheon Technologies (engine, distributed aper-ture system) and BAE Systems (aft fuselage, electronic warfare suite).
It was not immediately clear which customers and variants would be affected by the potential shortfall of 18-24 F-35 deliveries in 2020.
The Defense Department is closely watching the F-35, its single-largest production system. So far, senior acquisition officials expect the overall impact of the novel coronavirus on weapon system production to be manageable. But the Pentagon leadership considers the military aircraft industry an exception. Although demand and domestic U.S. military spending remain intact, the military aviation supply chain's links to the collapsing commercial aircraft market is causing delays.
“I think [military] aviation has had a more acute sensitivity to supplier disruptions, largely driven by the massive upheaval in the commercial aviation market,” said James Geurts, assistant secretary of the Navy for research, development and acquisition. “Many of the aerospace companies were blended between military and commercial, and with commercial just falling through the floor, their abilities to stay open and keep their workforce has been a little bit more challenged.”
Another sector Geurts is watching is the market for command, control, communications and computers and intelligence (C4I). “We're trying to track all of it,” he says. “But the most immediate impact we've seen has been on aviation.”
Lockheed's F-35 assembly line in Fort Worth was hit hard by the COVID outbreak in mid-April. One employee, Claude Daniels, died after reporting COVID-19-related symptoms to a supervisor. Another F-35 employee, who survived, broadcast a Facebook Live video from his hospital bed, pleading with his unionized co-workers to sanitize their workspaces even if it is not in their job description.
The company's management has said that the F-35 assembly line adopted new protocols in response to the COVID-19 pandemic, which included regularly sanitizing equipment and quarantining employees exposed by co-workers or others to the virus.
The COVID-19 response is not the only pressure on the F-35's production system. Lockheed exceeded the overall delivery target by three aircraft in 2019, but slower production of the less mature F-35C airframe nearly caused the company to miss the annual goal. To compensate, Lockheed moved up deliveries of four F-35As originally scheduled for 2020 to the end of 2019, allowing the company to beat the delivery target by three aircraft instead of missing it by one.
Before the impact of the virus, the F-35's global supply chain was already strained by the three-year production ramp-up from 2017 to 2019. Late part deliveries jumped to 10,000 in 2019 from 2,000 in 2017, according to a May report by the Government Accountability Office (GAO). Monthly parts shortages, meanwhile, leaped to 8,000 in July 2019 from 875 a year before, the GAO says. The shortages represent a fraction of the 300,000 parts in each F-35, but the trend offered a glimpse of the pressure on the supply chain to meet demand during the ramp-up.
November 16, 2023 | International, Aerospace
Boeing Co said on Thursday it will partner with the U.S. government in a project aimed at addressing challenges faced by Asia Pacific Economic Cooperation (APEC) member countries in developing and scaling use of sustainable aviation fuel (SAF).
April 22, 2020 | International, Aerospace
By: Valerie Insinna WASHINGTON — The coronavirus pandemic has rattled Lockheed Martin's aeronautics business, with the F-35 joint strike fighter program facing the prospect of a slowdown in deliveries, company executives said Tuesday. “The disruptions introduced by the virus have caused us to reduce our 2020 sales expectations as production and supply chain activities have recently slowed in our aeronautics business area,” Lockheed CEO Marillyn Hewson said during an April 21 earnings call with investors. The company now projects its total sales for 2020 will amount to anywhere from $62.25 billion to $64 billion dollars — down from the the $62.75 billion to $64.25 billion it had previously estimated in January. Production of the F-35 has been the hardest hit by the COVID-19 pandemic so far, said Ken Possenriede, the company's chief financial officer. “There's more analysis that we're going to do over the next couple of weeks working with our supply chain, our Fort Worth production line to determine — if any impact — to what extent it will be, including deliveries,” he said. Lockheed's acknowledgement of COVID-19 related challenges comes a day after the Pentagon disclosed schedule delays across its major weapons acquisition efforts, with aviation programs hit particularly hard by the effects of the pandemic. “We believe there will be a three-month impact that we can see right now. So we're looking at schedule delays and inefficiencies and so forth. That isn't a particular program, that's [major defense acquisition programs] in general,” Ellen Lord, the Pentagon's top acquisition official, told reporters Monday. While Lord did not name specific programs that could be delayed, Possenriede said Tuesday that disruptions to the F-35 program were likely due to pressures faced by domestic and international companies within the jet's global supply chain. “There are local distancing requirements that are being more stringently applied across the globe. There is workforce disruption,” he said. “We've actually had some issues with shipping constraints.” Most recently, Lockheed's supply chain team discovered an issue with suppliers' performance-based payment invoices, which get delivered to Lockheed after certain milestones are completed, Possenriede said. “There are a couple suppliers that are going to be delinquent in April. Some of them are for administrative reasons — we'll work through that. That's just timing. Some of them is due to them not achieving their milestones,” he said. “Most of it is going to be COVID-related. We're looking at that.” Despite the challenges in keeping F-35 production smooth, there has been little change to other aspects of the program, Possenriede said. Development and follow-on modernization activities have continued with “little to no impact.” And while Lockheed contractors have faced some barriers reporting to work at certain bases where they help perform repairs or stand up maintenance operations, Possenriede said there has been minimal impact to F-35 sustainment. https://www.defensenews.com/air/2020/04/21/f-35-deliveries-could-slow-down-as-covid-19-jolts-lockheeds-supply-chain/
May 12, 2020 | International, Land, C4ISR
The Army pushed hard to field-test new tech with real soldiers. Then came the coronavirus. Now the service will have to rely much more on lab testing. By SYDNEY J. FREEDBERG JR.on May 11, 2020 at 5:11 PM WASHINGTON: The Army is taking a calculated risk to field much-needed network upgrades known as Capability Set 21 on time next year. To do that, the service needs to start buying radios, computers, satellite terminals, and much more in bulk this year so it can start fielding them to four combat infantry brigades in early 2021. Many Army weapons programs are staying on schedule because they're still doing digital design work and long-term R&D, much of which can be done online. But Capability Set 21 is so far along that much of its technology was already in field tests with real soldiers — testing that has been badly disrupted by precautions against the COVID-19 pandemic. As a result, said Maj. Gen. David Bassett, Program Executive Officer for Command, Control, & Communications – Tactical (PEO-C3T), the Army may have to rely on more testing data from the lab to make up for limited testing in the field. “As soon as we possibly can, we're going to get this back in the hands of soldiers,” Basset told the C4ISRNet online conference last week. “In the meantime, we know an awful lot from the lab-based risk reduction that we've done.” “The risk,” he said, “is pretty manageable.” Risk & Return The field tests done before the pandemic, combined with extensive lab tests, should be enough to prove the technology will work, Bassett said. In fact, the Army already largely decided what technologies to buy for the upgrade package known as Capability Set 21, he said. What it still wanted soldiers to figure out in field tests, he said, was how they would use it in the field. That feedback from those “soldier touchpoints” would help both fine-tune the tech itself and figure out exactly how much to buy of each item – say, single-channel radios versus multi-channel ones — for each unit. Going ahead without all the planned field-testing means the Army will have to make more fixes after the equipment is already fielded, a more laborious, time-consuming, and costly process than fixing it in prototype before going into mass production. It may also mean the Army initially buys more of some kit than its units actually need and less than needed of other items. But CS 21 is a rolling roll-out of new tech to four brigades a year, not a once-and-done big bang, Bassett explained. So if they buy too much X and too little Y for the first brigade or two, he said, they can adjust the amounts in the next buy and redistribute gear among the units as needed. It's important to make clear that the Army's new technologies have already gone through much more hands-on field testing from actual soldiers than any traditional program, and have improved as a result. In the most dramatic example — not from CS 21 itself but a closely related system — blunt feedback from soldiers and quick fixes by engineers led to major improvements in prototype IVAS augmented reality goggles, a militarized Microsoft HoloLens that can now show soldiers everything from live drone feeds to a cross-hairs for targeting their rifle. Doing such “soldier touchpoints” early and often throughout the development process is central to the 20-year-month Army Futures Command's attempt to fix the service's notoriously disfunctional acquisition system. But to stem the spread of the COVID-19 coronavirus, the Army – like businesses, schools, and churches around the world – has dramatically cut down on routine activities. “Units are either not training, or they're training with significant control measures put in place – social distancing, protective equipment, and things like that,” said Maj. Gen. Peter Gallagher, head of the Network Cross Functional Team at Army Futures Command. That's disrupted the “access to soldiers and the feedback loop that's been so critical to our efforts.” Nevertheless, the Army feels it has enough data to move ahead. It may also assess that the risk of moving ahead – even it requires some inefficient fixes later – is lower than the risk of leaving combat units with their existing network tech, which is less capable, less secure against hacking and less resilient against physical or electronic attack. 2021 And Beyond Capability Set 21 focuses on the Army's light infantry brigades, which don't have many vehicles to carry heavy-duty equipment, as well as rapidly deployable communications units called Expeditionary Signal Battalions. It includes a significant increase in the number of ground terminals for satellite communications, the generals said, though not quite as many as they'd hoped to be able to afford. It'll be followed by Capability Set 23, focused on medium and heavy mechanized units riding in 20-plus ton 8×8 Strykers and 40-plus-ton tracked vehicles. While units with lots of vehicles can carry much more gear, they also cover much larger distances in a day. That means CS 23 will include much more long-range communications through satellites in Low and Medium Earth Orbit, “which give us significantly more bandwidth at lower latency,” Gallagher said. “In some cases, it's almost having fiber optic cable through a space-based satellite link.” Even with CS 21 still in final testing, the Army's already gotten started on CS 23. It's reviewed over 140 white paper proposals submitted by interested companies in January, held “shark tank” pitch sessions with the most promising prospects in March, and is now negotiating with vendors. An Army slide summing up the systems being issued as part of the Integrated Tactical Network. Note the mix of Commercial Off The Shelf (COTS) and military-unique Program Of Record (POR) technologies. There has been some impact from COVID,” Gallagher said, “[but] we will have all the contracts probably let no later than July.” The chosen technologies will go into prototype testing next year, with a Preliminary Design Review of the whole Capability Set in April and a Critical Design Review in April 2022. Further Capability Set upgrades are planned for every two years indefinitely, each focusing on different key technologies and different parts of the Army. Meanwhile, Bassett's PEO shop is urgently pushing out more of its existing network tech to regular, Reserve, and National Guard troops deployed nationwide to help combat COVID-19, Bassett said. That includes everything from satellite communications links to military software on an Android phone, known as the Android Tactical Assault Kit (ATAK). Originally developed to help troops navigate and coordinate on battlefields, ATAK is now being upgraded to provide public health data like rapid updates on coronavirus cases. “Any soldier that was responding to this COVID crisis that needed network equipment, we wanted them to have a one-stop shop,” Bassett told the conference. “They would come to us and we'd go get it for them.” https://breakingdefense.com/2020/05/covid-disrupts-network-tests-but-army-presses-on