Author Archives: Loren B. Thompson, Ph.D

August 2, 2010Loren B. Thompson, Ph.D

Gates Cautions CEO’s As Industry Submits Efficiency Ideas Defense secretary Robert Gates issued a friendly but firm warning to the leaders of the defense industry in a private meeting last week: either get with the program on becoming more efficient, or live with the possibility of more draconian [Read More...]

July 30, 2010Loren B. Thompson, Ph.D

Boeing And Lockheed Poised To Dominate Global Arms Sales As domestic demand for military goods begins to soften, the U.S. defense industry is seeking to sustain profits by selling more of its products overseas. Although the United States already generates about two-thirds of all cross-border arms sales around the [Read More...]

July 26, 2010Loren B. Thompson, Ph.D

Boeing Defense Ops Stabilizing After Years Of Erosion News that Army leaders were impressed by the most recent demonstration of the battlefield network that Boeing developed for future armored forces is the latest indication that the aerospace behemoth’s defense operations may be stabilizing after years of erosion. Boeing [Read More...]

July 23, 2010Loren B. Thompson, Ph.D

Under Secretary Carter Comments On Lexington Efficiency Brief Pentagon acquisition chief Ashton Carter called me today to clarify a key point about his ongoing efficiency drive. Carter said he was an avid reader of Lexington’s briefs and liked this week’s assessment of the efficiency initiative, but despite his [Read More...]

July 22, 2010Loren B. Thompson, Ph.D

Competition & Consolidation: The Realities Of Nuclear Shipbuilding Nuclear-powered warships are uniquely suited to America’s global maritime role, because they have unlimited range and are less dependent on overseas logistics support than warships powered by fossil fuels. However, the special skills required to design and build such vessels [Read More...]

July 21, 2010Loren B. Thompson, Ph.D

Hyper-Dynamic Larry Prior Named To Top Intel Post At BAE Systems Inc. BAE Systems Inc. scored a major coup on Tuesday with the announcement that industry powerhouse Lawrence B. Prior III would depart the number-two position at ManTech International to become BAE’s Executive Vice President for services. Prior will oversee all of [Read More...]

July 20, 2010Loren B. Thompson, Ph.D

Pentagon Efficiency Drive Neglects Its Best Tool Issue Brief Defense department acquisition chief Ashton Carter has begun an efficiency initiative aimed at reducing overhead costs by $100 billion during the 2012-2016 period. Carter notes that most of the Pentagon’s budget is spent on purchases of goods and [Read More...]

July 19, 2010Loren B. Thompson, Ph.D

Efficiency Push Elicits Skeptical Response Last week’s meeting between defense department officials implementing a new efficiency initiative and representatives from the defense industry did not go well. Although everybody in industry understands the need to cut costs, there is pervasive skepticism about the government’s ability [Read More...]

July 16, 2010Loren B. Thompson, Ph.D

Northrop Move Sparks Speculation About Sector Consolidation Northrop Grumman’s disclosure this week that it may exit the naval shipbuilding business has generated a wave of speculation among investors about defense-industry consolidation. Investors have long known that demand for defense goods and services would soften as U.S. forces [Read More...]

July 15, 2010Loren B. Thompson, Ph.D

Knowing How Northrop Entered Shipbuilding Helps Explain Why It May Exit Wayne Biddle began his 1991 history of the aerospace industry, Barons of the Sky, with the observation that “corporations destroy history.” Unless there is a legal requirement to maintain records, companies are usually too focused on the present to maintain [Read More...]