Lockheed Martin F-35 to miss 2020 production target due to coronavirus-caused parts shortage
Lockheed Martin will likely miss its production target of 141 examples of the F-35 Lightning II stealth fighter in 2020.
The company’s suppliers are not able to deliver parts on time, a disruption caused by the coronavirus. As a result, the number of F-35s produced this year could fall by 18 to 24 units below the 141 aircraft goal, Lockheed Martin says on 19 May.
The aerospace manufacturer is planning for a three-month production slowdown at its Fort Worth, Texas facility and reached an agreement with the International Association of Machinists and Aerospace Workers (IAM) to operate under a temporary alternating work schedule for line employees.
“The new schedule, which will begin May 23, divides each shift into three groups. On a rotation, each group will work for two weeks and then will have a week off,” says the firm. “During the adjusted three-week work schedule, employees who work 96h or more will be compensated an additional 24h for their off week while receiving full pay and benefits.”
The alternating schedule is meant to help maintain a work rhythm and help Lockheed Martin retain skilled workers, the manufacturer says.
“The temporary alternate work schedule agreement will continue for its first three-week cycle. The company will then evaluate business needs and can alter the schedule as needed with the option to discontinue as warranted or continue until Sept. 4,” says the company. “Lockheed Martin and the IAM have also agreed to allow employees to volunteer to be furloughed for 30 days where they maintain their benefits but forgo pay during this period.”
The company declines to say what F-35 parts were in short supply or what suppliers were impacted by coronavirus.
Lockheed Martin’s Kenneth Possenriede, executive vice-president and chief financial officer of the company, projected in an earnings call in April that F-35 production would decline. However, at the time he said he did not know by how much.
Anticipating the decline, the company had lowered the upper end of its aeronautics unit’s annual revenue projection by about 2% to $24.6 billion. The F-35 is the biggest revenue-generating business line within the aeronautics unit. The firm says its prior projections remain consistent.
Lockheed Martin anticipates returning to pre-coronavirus production levels in the autumn.