Top Defense Contractor Ramps Up Missile Production As Iran War Drains US Arsenal
Lockheed Martin announced a $420 million expansion of its Arkansas missile manufacturing operations Monday as the Pentagon struggles to replenish interceptor stockpiles devastated by the costly Iran War.
The investment will expand production capacity for Patriot PAC-3 and Terminal High Altitude Area Defense (THAAD) interceptors while creating 650 jobs over five years, according to an announcement from the Arkansas Economic Development Commission. However, Lockheed did not specify how many additional interceptors the expansion would produce annually or when the increased capacity would become operational.
The Iran War has coincided with a financial windfall for Lockheed Martin, which reported $1.8 billion in third-quarter net earnings, a 14% increase from the previous year, on $20.7 billion in sales, according to the company’s October earnings report.
The defense giant’s order backlog also soared to a record $292 billion, including $52.5 billion tied to PAC-3 interceptor production, while its Missiles and Fire Control division accumulated $142.5 billion in outstanding orders, according to the same financial disclosure.
“The Patriot Interceptor’s current production rate is 650 per year, and the Trump administration is saying, ‘Oh well, we signed an agreement with Lockheed that they’ll ramp up production to close to 2000 per year by 2032 or something or 2030 or something like that.’ Even if that happens, it’s still going to take several years to replace these munitions because of the rate at which they were expended,” cofounder of the Security Policy Reform Institute, Stephen Semler, previously told the DCNF. (Read more from “Top Defense Contractor Ramps Up Missile Production As Iran War Drains US Arsenal” HERE)
