Introduction
Although concerns are mounting regarding rising costs, incumbent governments remain committed to the F-35 program, and the development of fifth generation jet fighters remains integral to many countries’ defense strategy. Although technical problems persist, the F-35 achieved several milestones in 2011, and is currently surpassing expectations in several key criterion.
Scope of this research
MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions. Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends. Research and analysis highlights
Lockheed Martin is one of the largest global defense contractors, and the Joint Strike Fighter represents a significant investment for the company and several countries’ defense strategies.
The project offers many advantages to its participants, with the highly advanced fighter jet offering unrivalled capabilities. It was initially considered to be a relatively cost-effective measure for replacing aging fourth generation aircraft, and the design of the model promised a high degree of interoperability and logistical benefits.
The project is facing numerous challenges as customers postpone or trim their orders in the advent of the global slowdown and debt crisis. The costs of the program have come under scrutiny, while technical problems have plagued the project.
Key reasons to purchase this research
Will the F-35 endure eroding support, escalating costs, and declining spending in many potential markets? With the closing of the F-22 program and the F-35’s significance to Lockheed Martin’s long-term strategy, what are the implications for the company?
Although concerns are mounting regarding rising costs, incumbent governments remain committed to the F-35 program, and the development of fifth generation jet fighters remains integral to many countries’ defense strategy. Although technical problems persist, the F-35 achieved several milestones in 2011, and is currently surpassing expectations in several key criterion.
Scope of this research
MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions. Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends. Research and analysis highlights
Lockheed Martin is one of the largest global defense contractors, and the Joint Strike Fighter represents a significant investment for the company and several countries’ defense strategies.
The project offers many advantages to its participants, with the highly advanced fighter jet offering unrivalled capabilities. It was initially considered to be a relatively cost-effective measure for replacing aging fourth generation aircraft, and the design of the model promised a high degree of interoperability and logistical benefits.
The project is facing numerous challenges as customers postpone or trim their orders in the advent of the global slowdown and debt crisis. The costs of the program have come under scrutiny, while technical problems have plagued the project.
Key reasons to purchase this research
Will the F-35 endure eroding support, escalating costs, and declining spending in many potential markets? With the closing of the F-22 program and the F-35’s significance to Lockheed Martin’s long-term strategy, what are the implications for the company?
Overview
Catalyst
Summary
Analysis
The F-35 is a significant investment for Lockheed Martin
Lockheed Martin is one of the largest global defense contractors
The F-35 was chosen as the next generation of fighters for the US military and beyond
The JSF program is also crucial for the US’s allies
Fifth generation jet technology is vital to security interests
The current generation of fighters are still competitive, but technology is advancing
Advanced technology permits a better projection of deterrence
The JSF is the only viable Western fifth generation jet fighter
The JSF program has several advantages
Advanced technology permits currently unrivalled combat capabilities
The program initially offered affordable increases in performance
Replacement of several products improves interoperability
The JSF program is facing numerous challenges
The US has postponed short-term orders
The affordability of the project has been called into question
Technical problems persist, particularly with the F-35B
The production model of the F-35
The JSF may not recoup falling international orders
Conclusions
The JSF will endure higher costs, but will come to fruition
Appendix
Definitions
Sources
Further Reading
Ask the analyst
About MarketLine
Disclaimer
TABLE OF FIGURES
Figure 1: Percentage of F-35 related net sales to Lockheed Martin’s total net sales
Figure 2: Lockheed Martin’s F-22 Raptor fighter jet
Figure 3: Lockheed Martin’s F-35B variant
Figure 4: Lockheed Martin’s F-35 production line in Fort Worth, Texas
Catalyst
Summary
Analysis
The F-35 is a significant investment for Lockheed Martin
Lockheed Martin is one of the largest global defense contractors
The F-35 was chosen as the next generation of fighters for the US military and beyond
The JSF program is also crucial for the US’s allies
Fifth generation jet technology is vital to security interests
The current generation of fighters are still competitive, but technology is advancing
Advanced technology permits a better projection of deterrence
The JSF is the only viable Western fifth generation jet fighter
The JSF program has several advantages
Advanced technology permits currently unrivalled combat capabilities
The program initially offered affordable increases in performance
Replacement of several products improves interoperability
The JSF program is facing numerous challenges
The US has postponed short-term orders
The affordability of the project has been called into question
Technical problems persist, particularly with the F-35B
The production model of the F-35
The JSF may not recoup falling international orders
Conclusions
The JSF will endure higher costs, but will come to fruition
Appendix
Definitions
Sources
Further Reading
Ask the analyst
About MarketLine
Disclaimer
TABLE OF FIGURES
Figure 1: Percentage of F-35 related net sales to Lockheed Martin’s total net sales
Figure 2: Lockheed Martin’s F-22 Raptor fighter jet
Figure 3: Lockheed Martin’s F-35B variant
Figure 4: Lockheed Martin’s F-35 production line in Fort Worth, Texas