Q Is the consolidation of the US defence industry complete?
A Consolidation is just about done. It has taken four phases.
We're in the fourth phase now - the global market will happen next. The real shape will depend on what happens in Europe.
Q What are the benefits of consolidation?
A We have closed 16 million ft2 of buildings, 28 plants, lost 125,000 employees, closed two corporate headquarters and three research labs.
It's painful at first but better in the long term. Speed is terribly important. Good things don't happen by delay.
Q At which stage in the consolidation process is the European industry?
A The process on consolidation in Europe will begin with privatisation within individual countries, followed by consolidation within countries, then consolidation will take place across Europe and then grow across the Atlantic.
Phase three to four may happen before the first two.
Q What relationship does Lockheed Martin have with other players in the industry worldwide?
A Lockheed Martin wants to be a partner. We want to be viewed as a friendly company with which to work. We are a giant but we want to be a friendly giant.
Q How will that process develop?
A Privatisation is essential for building partnerships across the Atlantic. Government-owned companies have totally different objectives from private ones.
The free enterprise system works. I hope the French find a way to privatise because we want to work with them.
Q How would these links develop?
A Partnership needs to be done gradually, beginning with joint ventures and then working together on major product lines.
The teaming relations on the present Joint Strike Fighter would be that type of thing. JSF would be a very important the first step.
Q What do foreign companies need to do before your links with them become closer?
A It would be very unusual for us to go in with a company that was not privately owned.
They've got to be able to close plants when the CEO makes a decision. If you've got to ask a government, it's a non-starter.
Q Where will Lockheed Martin be in 15 years?
A Defence and aerospace will only be 25% of our total business.
We will also be in large high technology contracts for governments or large corporations, telecommunications, information structure systems.
Q What are you going to do in retirement?
A On 2 August, canoeing and white water rafting.
I've had an offer to teach engineering at Princeton - teaching liberal arts students what high technology companies do.
I like to teach. I am staying as chairman - a hand shaker. The transition is smooth.
I've got a million hobbies I want to pursue. This is a good breaking point.
'I've had an offer to teach engineering at Princeton - teaching liberal arts students what high technology companies do. I like to teach. I am staying as chairman - a hand shaker. The transition is smooth. I've got a million hobbies I want to pursue. This is a good breaking point.'Source: Flight Daily News
