{"id":57295,"date":"2015-02-22T16:00:50","date_gmt":"2015-02-22T16:00:50","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/02\/22\/ceo-lockheed-positioned-for-complex-world\/"},"modified":"2026-08-08T00:14:18","modified_gmt":"2026-08-08T00:14:18","slug":"ceo-lockheed-positioned-for-complex-world","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2015\/02\/22\/ceo-lockheed-positioned-for-complex-world\/","title":{"rendered":"CEO: Lockheed Positioned for &#8216;Complex&#8217; World"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The CEO of the largest US defense firm, Lockheed Martin, said the company is adapting in the face of a series of &#8220;megatrends&#8221; that add up to &#8220;the most complex global security environment we have ever seen.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Change is constant \u2014 political, economic and cultural,&#8221; said CEO Marillyn Hewson, <a href=\"http:\/\/www.lockheedmartin.com\/us\/news\/speeches\/021815-hewson.html\" title=\"http:\/\/www.lockheedmartin.com\/us\/news\/speeches\/021815-hewson.html\">addressing reporters<\/a> at Lockheed&#8217;s offices here on Feb. 18. &#8220;What is clearer today is that the landscape is being re-shaped by a series of megatrends that \u2026 will affect how the world works in the decades ahead.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Shifting power dynamics, the fast proliferation of digital technology, a rising global population and worldwide economic uncertainty are fueling a number of Lockheed&#8217;s moves, Hewson said. Among them, the company is diversifying into commercial markets, the energy sector and seeking to grow its international business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hewson also defended the company&#8217;s efforts to build the F-35 as adaptable, and &#8220;the stealthiest, smartest and most advanced aircraft in history.&#8221; She touted the company&#8217;s participation in the government&#8217;s cost-cutting &#8220;blueprint for affordability,&#8221; and took aim at perceptions the F-35 is bleeding the US defense budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;By no means are we making exorbitant profits,&#8221; Hewson said. &#8220;We are focused on performance, that&#8217;s first and foremost for us, while meeting the technical, cost and schedule parameters. That&#8217;s what we&#8217;re committed to, to our customer, and we&#8217;re going stay focused on performance, and they can expect to get a return on that performance.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In 2014, Lockheed met its production target of 36 aircraft, she said, with plans to deliver more this year. She said the F-35C carrier variant completed sea trials ahead of schedule, and that the Marine Corps received its first F-35C last month as it prepares for initial operational capability this year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Asked about Lockheed&#8217;s rosy picture of the F-35 in the face of <a href=\"http:\/\/archive.defensenews.com\/article\/20140924\/DEFREG02\/309240030\/GAO-Questions-F-35-Sustainment-Estimates\" title=\"http:\/\/archive.defensenews.com\/article\/20140924\/DEFREG02\/309240030\/GAO-Questions-F-35-Sustainment-Estimates\">critical<\/a><a href=\"http:\/\/archive.defensenews.com\/article\/20140128\/DEFREG02\/301280035\/Report-Software-Issues-May-Delay-F-35-US-Marine-Corps\" title=\"http:\/\/archive.defensenews.com\/article\/20140128\/DEFREG02\/301280035\/Report-Software-Issues-May-Delay-F-35-US-Marine-Corps\">government<\/a><a href=\"http:\/\/archive.defensenews.com\/article\/20140122\/DEFREG02\/301220015\/New-Report-Questions-F-35-Job-Creation-Claims\" title=\"http:\/\/archive.defensenews.com\/article\/20140122\/DEFREG02\/301220015\/New-Report-Questions-F-35-Job-Creation-Claims\">reports<\/a>, Hewson said such reports, &#8220;outline that there are no new issues, there&#8217;s no showstoppers, this is a complex government program. We&#8217;re working through all of the issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;I don&#8217;t think there is a big gap, I think I&#8217;m being very straightforward to you that since we re-baselined the program in 2011 have been on-cost and on-schedule to move that program forward,&#8221; she said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Production quantities of the F-35 are not expected to fall, she said, though the services may weigh cutting orders if federal budget caps stand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hewson spoke in favor of the president&#8217;s fiscal 2016 budget request, which would breach caps set by the 2011 Budget Control Act by nearly $25 billion, as &#8220;the required expenditure&#8221; to address a series of thorny global megatrends complicating national defense.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Decrying sequestration, she called on Congress for &#8220;more flexibility and predictability in the budgeting and trade process, so that government leaders, the Department of Defense and industry partners can plan, invest and execute with confidence.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;As long sequestration is on the table, this country is undermining itself,&#8221; she said. &#8220;Lockheed Martin, together with industry will do everything we can to make the case to Congress.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A day after the <a href=\"http:\/\/www.defensenews.com\/story\/defense\/policy-budget\/industry\/2015\/02\/17\/armed-drones-state-department-alies\/23576441\/\" title=\"http:\/\/www.defensenews.com\/story\/defense\/policy-budget\/industry\/2015\/02\/17\/armed-drones-state-department-alies\/23576441\/\">US opened up sales of drones to allied nations<\/a>, Hewson voiced support for the administration&#8217;s efforts to open trade with international partners. She called for the passage of the trade promotion authority bill and the completion of ongoing regional free trade negotiations.<\/p>\n\n\n\n<p>In face of shrinking defense budgets, Lockheed has looked within for austerity measures, she said. The company is still <span class=\"rte rte-comment\">in the process of <\/span>closing facilities in Newtown, Pennsylvania, and Akron, Ohio, and scaling down in Sunnyvale, California, as <a href=\"http:\/\/archive.defensenews.com\/article\/20131114\/DEFREG02\/311140012\/Lockheed-Martin-Slashes-4-000-Jobs-After-US-Budget-Cuts\" title=\"http:\/\/archive.defensenews.com\/article\/20131114\/DEFREG02\/311140012\/Lockheed-Martin-Slashes-4-000-Jobs-After-US-Budget-Cuts\">announced<\/a> in 2013. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Seeking new business, Lockheed is pursuing 25 percent foreign sales this year and has opened offices in Canada, the United Kingdom, Israel, Qatar and the United Arab Emirates. Touting the Medium Extended Air Defense System as a candidate for sales to European countries, especially Germany and Italy, Hewson said the company met its goal in 2014 of 20 percent foreign sales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lockheed, itself a t<a href=\"http:\/\/www.defensenews.com\/story\/defense\/policy-budget\/cyber\/2014\/12\/10\/industry-fears-massive-losses-through-espionage-\/20211863\/\" title=\"http:\/\/www.defensenews.com\/story\/defense\/policy-budget\/cyber\/2014\/12\/10\/industry-fears-massive-losses-through-espionage-\/20211863\/\">arget of cyber attacks<\/a>, has leveraged its investments to protect itself to become a cybersecurity provider for more than 200 customers around the world, she said<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Given our line of work, we&#8217;re often a target ourselves of advanced persistent threats. We faced 50 such coordinated, sophisticated campaigns in 2014 alone \u2014 and that number is sure to keep growing,&#8221; Hewson said. &#8220;So we&#8217;ve made significant investments to protect ourselves, our information, our warfighters, and our shareholders.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the energy sector, Lockheed has entered a wide range of areas, generation, management, storage and security, Hewson said. While not a large business for the company, Hewson characterized it as a growing business the company plans to continue to pursue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One example is an ocean thermal energy conversion technology, as Lockheed partnered with a company called the Reighnwood Group on a 10 megawatt power plant off the coast of southern China. Lockheed also purchased the assets of an energy storage company, Sun Catalytix, to open its Lockheed Martin Advanced Energy Storage operation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Constraints on resources drives instability, which in turn drives conflict in the world, so energy aligns well with our capabilities, as well as what we believe is our mission,&#8221; Hewson said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: <a href=\"http:\/\/mailto:jgould@defensenews.com\/\" title=\"http:\/\/mailto:jgould@defensenews.com\/\">jgould@defensenews.com<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Twitter: <a href=\"https:\/\/twitter.com\/reporterjoe\" title=\"https:\/\/twitter.com\/reporterjoe\">@reporterjoe<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CEO of the largest US defense firm, Lockheed Martin, said the company is adapting in the face of a series of &#8220;megatrends&#8221; that add up to &#8220;the most complex global security environment we have ever seen.&#8221;<\/p>\n","protected":false},"author":7,"featured_media":77865,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":12,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[12,19],"tags":[],"coauthors":[3446],"class_list":["post-57295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry","category-pentagon"],"acf":{"subheadline":"","legacy_arc_id":"JGLXMWP7MJGBHGR2DKJWCQOWKQ","arc_canonical_url":"\/industry\/2015\/02\/22\/ceo-lockheed-positioned-for-complex-world\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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