June 29, 2020 | International, Aerospace
By: Joe Gould
WASHINGTON ― Lockheed Martin has sent $1.1 billion in accelerated payment to support its network of suppliers amid the COVID-19 pandemic, the company announced Friday.
The defense contracting giant has also hired 8,300 employees since the crisis began in March, with plans to hire 3,200 more before the end of the year. The hires mark a contrast with the rest of the U.S. economy, which saw the unemployment rate hit 13 percent this month and began a recession in February.
“In this volatile environment, it is more important than ever before to maintain the operations of the defense industrial base and support our men and women in uniform,” Lockheed's new president and CEO, Jim Taiclet, said in a statement.
Ever since the Pentagon announced it would speed progress payments to its suppliers to keep cash flowing in the defense-industrial base, it says it has made $3 billion in contract obligations. The Pentagon is working to support smaller firms in particular.
Lockheed Martin said Friday it has “flowed all of the accelerated payments it has received from the Department of Defense to its supply chain, giving priority to small and vulnerable suppliers, as we continue our efforts to mitigate COVID-19 risks and promote a healthy Defense Industrial Base.”
This wasn't the only good news for the sector this week. Ellen Lord, the undersecretary of defense for acquisition and sustainment, said at a Monday news conference that nearly all of the defense firms closed by the pandemic have reopened.
“We see an enormous amount of recovery in the defense-industrial base. It depends on location and what type of work is being performed, but there is enormous progress coming back,” Lord said. “Obviously for manufacturing we need people on the line, so we're doing things differently in terms of following [the Centers for Disease Control and Prevention's] guidelines and so forth.”
Still, the Pentagon expects to see “inefficiencies” across most programs as well as cost growth. “COVID-19 is shutting down defense manufacturing facilities and production lines, disrupting supply chains, and distressing the financial stability of the companies DoD relies on to protect the nation,” Lord said.
Due to the effects of the pandemic, Lockheed said it would slow F-35 production, leaving it anywhere from 18 to 24 jets short of the 141 scheduled for delivery this year.
May 2, 2024 | International, Land
The success of ballistic missile defences facing their first complex, high-stakes combat scenarios in Israel, the Red Sea and Ukraine will encourage militaries globally to invest in the pricey systems, experts say - and intensify missile arms races.
November 16, 2018 | International, Aerospace
Ministry of Defence, Defence Equipment and Support, and The Rt Hon Gavin Williamson CBE MP The multi-million-pound contract signed will see the UK own 35 stealth jets by end of 2022 with Britain manufacturing 15% of the overall global order for 255 aircraft. The UK is set to double its number of world-beating F-35 stealth jets after ordering 17 more aircraft, Defence Secretary Gavin Williamson has announced. The 17 new F-35B aircraft will be delivered between 2020 and 2022 and will complement the 16 British aircraft currently based at RAF Marham and in the US, as well as two additional aircraft which are already on order. Overall, the UK has committed to procure 138 aircraft over the life of the programme. Defence Secretary Gavin Williamson said: I am delighted to confirm that we are doubling the size of our F-35 force into a formidable fleet of 35 stealth fighters. This is another massive order in the biggest defence programme in history. Our military and industry are playing a leading role in the F-35 programme. We are now building this game-changing capability that will soon be ready for frontline action. This programme is set to bring an immense boost of £35 billion into the British economy, and it will be welcome news to our firms that many more jets are now set for production. The 17 jets being ordered are part of a $6 billion contract for 255 aircraft being built for the global F-35 enterprise. The announcement is also good news for the UK economy, as British companies are building approximately 15% by value of all 3,000-plus F-35s planned for production. It is projected that around £35 billion will be contributed to the UK economy through the F-35 programme, with around 25,000 British jobs also being supported. CEO of Defence Equipment and Support, Sir Simon Bollom said: As the largest operator of F-35s outside of the US, the acquisition of 17 more Lightning aircraft underscores our commitment to the programme. This new contract demonstrates how our Armed Forces are equipped by DE&S with the latest equipment and support. News of this latest order comes as F-35B aircraft are currently embarked on HMS Queen Elizabeth for flying trials in the US, which continue to progress well. The fighter jets will be jointly manned by the Royal Air Force and the Royal Navy and can operate from land and sea, forming a vital part of Carrier Strike when operating from the Queen Elizabeth Class aircraft carriers. https://www.gov.uk/government/news/uk-to-double-f-35-fleet-with-17-jet-order-defence-secretary-announces
June 8, 2023 | International, Naval
Germany's Thyssenkrupp and India's Mazagon Dock Shipbuilders have signed an agreement to participate in a submarine tender by the Indian Navy that sources said has a value of around $5.2 billion.