Lockheed Martin Advances Over $50 Million To Suppliers

By Dan Anderson ● Mar 28, 2020
  • Defense company Lockheed Martin announced it was going to advance over $50 million to suppliers that were affected by the economic slowdown

Defense company Lockheed Martin announced it was going to advance over $50 million to suppliers that were affected by the economic slowdown, according to Reuters.

The Department of Defense is increasing the amount of interim payments (progress payments) to its defense contractors. And the largest contractors were to get payments of 90% as they work on completing projects.

Lockheed Martin Chairman, President and Chief Executive Officer Marillyn Hewson told Reuters that the company is advancing over $50 million to ensure that there are no disruptions in its supply chains and keep its suppliers afloat.

Plus Lockheed Martin is also providing $16.5 million in commitments for COVID-19 relief. And Hewson said that the company plans to remain operational as best as it can while continuing to “protect the health and safety” of employees. The company will continue planning recruiting and hiring while also utilizing virtual technology and social distancing tactics.

“We also recognize that the global pandemic has created a need for urgent action by government, business, communities and citizens,” said Hewson via Reuters.

A number of defense suppliers also work closely with Boeing’s aerospace business. And Boeing has been especially hit hard by the COVID-19 pandemic. However, Boeing does not have any intention to take government aid as of Friday.

Along with advancing payments to suppliers, Lockheed Martin is also donating use of its corporate aircraft and vehicles for COVID-19 relief. Plus the company is also offering engineering and technical capabilities.

Featured Photo Credit: Marillyn Hewsonl