News Summary
Lockheed Martin stands as the leading defense contractor in North Carolina, generating over $68 billion through U.S. military contracts. The F-35 Lightning II fighter jet production is key to its revenue, employing thousands in a vast supply chain across the nation. As the military continues to allocate significant funds for defense, the impact on local economies is profound, with North Carolina playing a crucial role. Challenges concerning future defense technologies spark discussions on the relevance of manned versus unmanned systems as global threats evolve.
North Carolina has emerged as a focal point in the global defense landscape, with Lockheed Martin leading the charge as the top defense contractor. The company reported revenues exceeding $68 billion largely attributed to contracts with the U.S. military, solidifying its position as the foremost player in the industry.
According to the latest figures, the top ten U.S. defense contractors collectively generated $273 billion in defense revenue last year. Lockheed Martin reaps significant benefits from its military contracts, which contribute to 96% of its overall revenue. Other prominent defense contractors, such as Northrop Grumman and Huntington Ingalls Industries (HII), also rely heavily on military contracts, with 89% and 100% of their revenues derived from defense, respectively.
A critical component of Lockheed Martin’s revenue stems from the production of F-35 Lightning II fighter jets, which are a mainstay in U.S. military operations. The U.S. is expected to continue purchasing the F-35 until approximately the mid-2040s, with each aircraft costing between $80 million and $100 million. Recently, a contract for 148 F-35 aircraft was finalized, valued at nearly $24.3 billion, covering production lots 18 and 19. This agreement was in the works for about two years and marks a significant step in the program, including deliveries to both U.S. and foreign buyers starting in 2026.
The F-35 program’s impact extends beyond revenue, creating a complex supply chain that involves 1,650 companies across 49 states. This network provides approximately 290,000 jobs, with North Carolina housing 29 companies employing nearly 4,000 workers dedicated to this production. The overall costs for the F-35, including acquisition, upgrades, and maintenance, are projected to exceed $2 trillion over its operational lifespan.
In the context of defense spending, the U.S. allocates approximately $1 trillion annually to military efforts, affecting the economy in North Carolina by supporting over 650,000 military jobs. The ongoing debate around modernizing defense systems is marked by discussions on shifts toward drones and artificial intelligence (AI) technologies, which challenge traditional investments in legacy systems like the F-35 and aircraft carriers. While innovations such as drones gain traction, the F-35 remains a pivotal element of U.S. defense strategy.
Recently, the military deployed 10 F-35 jets to the Caribbean to oversee operations after an encounter with Venezuelan fighter jets, further emphasizing the ongoing reliance on this aircraft. Despite rising critiques regarding the future of manned aircraft versus unmanned systems, particularly from figures like Elon Musk, the F-35 maintains its significance in defense planning and military operations.
The strategic relevance of aircraft carriers as platforms for power projection is also under scrutiny amidst evolving military threats, especially concerning potential tensions with China. Additionally, recent global conflicts, including the situation in Ukraine, have brought the prominence of drone warfare into sharper focus, possibly influencing future defense procurement decisions.
Financially, Lockheed Martin shows robust health, despite some concerns regarding its stock price, currently viewed as overbought with a technical indicator showing an RSI of 76.28. Institutional ownership is reported at 74.58%, while insider ownership is relatively low at 0.43%.
This data underscores Lockheed Martin’s leading role in the defense sector and highlights the complexities of modern military procurement and strategy amidst evolving global challenges.
Deeper Dive: News & Info About This Topic
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- Encyclopedia Britannica: Defense Contractors
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Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
