World's Biggest Defense Contractor in the Overdrive Mode - Part 1
World's biggest defense contractor, Lockheed Martin Corporation, is ramping up production rates on key defense systems at almost war footing to meet surging global demand.
Lockheed Ramping Up Production of Key Defense Systems to Meet Surging Global Demand
Lockheed Martin has been in the process of ramping-up production rates for most key, in-demand defense systems to meet surging demand levels globally and to replenish depleted inventories of the U.S. and allied nations which have donated any of these systems to Ukraine so that the beleaguered nation could effectively fight-off Russian aggression on its soil following the Russian invasion of Ukraine in 2022 which has led to an unprecedented surge in global defense spending from 2023 onwards. Key systems on which production rates have been ramped-up include:-
Javelin Anti-Tank Guided Missile System (ATGM): The man-portable, shoulder fired Javelin missile system has proven its mettle in Ukraine as a true game-changer, fire and forget capability by decimating approaching columns of Russian armor to a devastating effect which has led to a beeline of nations seeking, especially in Eastern Europe facing direct Russian threat, to acquire the system while the U.S. forces are looking to replenish their depleted stocks of Javelin.
LMT has already increased Javelin production by 15% year-on-year to 2,400 missiles annually by early 2024, however, the company is working closely with the U.S. Army to further ramp-up the production to 3,960 missiles annually towards the end of 2026 through integration of new tooling & test equipment into the final assembly line, improving production line efficiency and enhanced collaboration with suppliers through the entire supply chain.
Lockheed Martin has received a $7.2 billion IDIQ production contract award from the U.S. Army for production of Javelin missile system and associated equipment & services for fiscal years through 2023 to 2026. The award includes a base year with authorized funding to $1.02 billion and production ramp support to increase Javelin All Up Round (AUR) production to 3,960 per year by late 2026. The contract includes procurement of Javelin systems along with provision of sustainment support to the U.S. Army and International Customers.
So far, around 50,000 Javelin missiles system units have been produced by the Raytheon-Lockheed Martin JV which produces the tactical system, which is likely to remain the backbone of the Western anti-armor doctrine and force structure at least through the 2050 and the deteriorating global security environment portends another further ramp-up of production further down the current decade.
Image Credits: Lockheed Martin Corporation (Javelin ATGM)
For More, Explore our research report Comparative SWOT & Strategy Focus: 2024-2027 - World's Top 7 Aerospace & Defense Companies - Airbus, Boeing, BAE Systems, Lockheed Martin, Northrop Grumman, General Dynamics, RTX
About the Author: Rajat Narang is the Co-Founder & Partner of Noealt Corporate Services apart from being an A&D Industry Researcher & Specialist, Serial Author and Nuclear, Aviation & Cold-War Historian. For his full bio and list of books authored by him on the Global A&D Industry, access his author page on Amazon.com
