U.S. military spending is declining, and with the recent debt pact those cuts are likely to be deeper than previously forecasted. For many defense companies that might spell doom-- or at least tough times ahead. But Boeing’s Military Aircraft division president, Chris Chadwick, told The Hill that the company is optimistic for these key reasons:
- Companies with known commodities will likely to ride out the downturn and come out strong. With Boeing’s military portfolio, the company is well-placed, with several strong, mature product lines like the F-15, F-18 and Apache helicopters that position the company well for competition.
- Boeing has a “balanced” market strategy, with solid U.S. programs and a growing international reach for weapons sales.
- After a bruising bidding war, Boeing was recently selected to build the replacements for the Air Force’s ageing aerial refueling tankers, giving it a staggering $35 billion contract.
- Boeing’s military helicopters are in big demand. The Chinook is in such demand, that “if I could build more Chinooks, I could sell them -- that’s how hot it is,” Chadwick told The Hill.
- The unit is expanding into new technologies, including unmanned combat vehicles.
- The unit will compete for a new multibillion-dollar contract to build the next generation of bombers for the U.S. Air Force.
“I wouldn’t trade the [division’s] portfolio for any of my competitors’ portfolios at this point,” Chadwick told The Hill.
