Dispute Not Stalling F-35 Testing System, Lockheed Martin Says

On the same subject

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  February 28, 2020 | International, Aerospace

  Lockheed Seeks Options As F-35 Cost Pressure Rises

  Steve Trimble ORLANDO, Florida—Lockheed Martin sees Poland's defense industry as a potential low-cost manufacturing source for the F-35 program, as “upward pressure” continues to grow on aircraft prices beyond Lot 14 partly due to the loss of Turkey as a low-cost manufacturing source. “Poland is a new opportunity to provide higher quality and lower cost,” said Greg Ulmer, Lockheed's vice president and general manager of the F-35, speaking to journalists at the Air Warfare Symposium here. Last month, Poland signed an order to buy 32 F-35As from production lots 16-23. The acquisition helps the NATO member that shares a border with Russia to replace its remaining fleet of Soviet-era fighters. But the deal also opens a new industrial source for the overall program. Meanwhile, the U.S.-led Joint Program Office is still working out procedures for finally expelling Turkey from the F-35 supply chain. A decision by Ankara last July to accept deliveries of Russian S-400 air defense systems prompted the U.S. government to cancel Turkey's remaining F-35 orders and suspend the country from participating in the program. An executive steering group is continuing to finalize plans to expel Turkey's companies, Ulmer said. The loss of Turkey's industrial base comes as the F-35 production system enters a transition period. After annual output more than doubled to 134 aircraft in 2019 from 66 in 2017, the pace of growth is slowing, with about 170 deliveries expected by 2023 as upgraded Lot 15 jets roll off the assembly line. The production ramp-up helped Lockheed dramatically lower prices, with F-35As from Lot 14 delivered in 2022 projected to cost $78.9 million each. As the pace of the ramp-up slows, Lockheed is starting to see “upward pressure” on recurring procurement costs after Lot 14, Ulmer said. A request for proposals sent by the U.S. program office to Lockheed recently for Lot 15 includes a greater variance between guaranteed orders and priced options than the company has seen before, Ulmer said. The minimum number would decline in annual production after Lot 14, he said, and the maximum could increase deliveries. The insertion in Lot 15 of Technical Refresh 3 upgrades under the Block 4 modernization program should not change recurring production costs, Ulmer added. The upgrades, which include a new integrated core processor, panoramic cockpit display and additional computer memory, should be a “cost neutral” upgrade, Ulmer said. https://aviationweek.com/shows-events/air-warfare-symposium/lockheed-seeks-options-f-35-cost-pressure-rises

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  June 2, 2022 | International, Aerospace, Naval, Land, C4ISR, Security

  EBACE 2022 a rousing success after pandemic pause - Skies Mag

  After a two-year hiatus, thousands of attendees from across the globe gathered at this year's EBACE to see what new and exciting products and services would be revealed.

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  January 11, 2021 | International, Aerospace, Naval, Land, C4ISR, Security

  Embraer defense executive: Will protectionism define the post-pandemic defense industry?

  By: Jackson Schneider While I'm writing this article, the world is facing the greatest global crisis of our generation. It is worth asking what a globalized world means after the COVID-19 pandemic, and mainly in the context of the defense industry. Will it feature, as it did until recently, dynamic international trade and financial flows, globally integrated production chains, and an unprecedented flow of people and goods? Or, as many have speculated, will we see more protectionism, with countries protecting their markets and jobs, being more self-absorbed and less integrated? And how will the effects of geopolitical trends, accelerated by the current crisis, unfold in the decision-making of the military segment in a review of strategic plans? Nonstate actors, unconventional wars, terrorism, nationalism, the connection of organized crime with paramilitary movements, radicalism and rogue states are some of the topics with which we are commonly presented. Entirely unpredictable in nature, these trends have the capacity to cause even more damage, marked by new space and cyber weapons. Perhaps we will move from open partnerships, shared defense solutions and industrial integration to a more suspicious environment, where countries will develop individual defense responses, only using partnerships that supplement their ability to succeed. New technologies, communications formats, relationships, economic flows, environmental concerns and geopolitical trends will have significant consequences in our lives. And the repercussions are uncertain. In this environment, the defense sector will face new threats, such as the even more intensive use of cyber and space technology, autonomous applications, and artificial intelligence to attack, threaten, influence, or defend countries, companies and citizens. The prospect of cyber conflicts is worrisome. Software overtakes hardware, and the product is an internet of solutions that we can't truly understand. This is the new world that the defense industry must understand and ultimately act upon. Industry must seek solutions far beyond the conventional, sometimes even distant from our natural comfort zones, either by doctrine or generational conflict. This challenge also sparks opportunity, as it enables countries to form programs to protect their critical infrastructure and sensitive data by encouraging unique solutions, using complementary and controlled partnerships when necessary. This can foster the digital economy and technology of the future. To make it happen, however, a fundamental change to the definition of “defense” is necessary. If we consider the defense realm to be exclusive to the military, these advancements will be limited. The most obvious vector of the defense environment is certainly the military, but the requirements of the post-pandemic world are larger. The public and private sectors must be coordinated. The integrated efforts of various companies are necessary for supporting the implementation of a cyber protection program. Universities and research centers will also be necessary for fostering knowledge and developing critical thinking throughout countries. Nations usually define their defense investment priorities based on military policies and geopolitical strategies — considering eventual threats or interests. They should defend their convictions, territory and population. The defense industry must interact with the world in general, either regionally or globally. Even if we imagine a less globalized world following the pandemic, defense challenges are increasingly global. Outlining regional defense visions and coordinating scientific and technological efforts — involving public and private agents — around the same strategic purpose can ensure the sustainability of our defense industry. Jackson Schneider is the president and CEO of Embraer's Defense and Security division. This essay was first published for Forte de Copacabana 2020. https://www.defensenews.com/outlook/2021/01/11/embraer-defense-executive-will-protectionism-define-the-post-pandemic-defense-industry