Lockheed Martin Corp is advancing more than $50 million to its suppliers hurt by the economic slowdown caused by work stoppages implemented to contain the global Covid-19 pandemic. A statement by CEO Marillyn Hewson listed a series of measures the aerospace group is putting in place, response to the widening business and social effects of the pandemic.
The aerospace and defense sector a whole is under stress by requirements of "social distancing" measures, as well as collateral problems with credit lines disrupted by gaps in payments. Boeing Co. is seeking a $60-billion federal aid package for itself and its suppliers, and reports have indicated the U.S. Dept. of Defense is increasing the amount of "progress payments" it makes to defense contractors, to assist them to complete their assigned projects.
Hewson framed a presentation of six steps Lockheed is taking by noting the company has three priorities: to protect the health and safety of its workers and their families; to continue to performing and delivering for customers; and to provide "know-how, resources, and leadership" during the "national crisis".
The financial measures Lockheed is taking include advancing over $50 million to small- and medium-sized businesses in its supply chain, to ensure they have the financial means to continue to operate and sustain jobs. Lockheed did not identify a specific value or terms for the advances.
The group also will donate $10 million to non-profit organizations involved in Covid-19 related relief and assistance, with emphasis on veterans and military families. And, it activated a $6.5-million employee disaster relief fund to assist Lockheed Martin employees and retirees.
In addition, Lockheed is offering its engineering and technical resources to help federal, state, and local officials address "the most pressing challenges" following from the pandemic.
Also, Lockheed will donate use of its corporate aircraft and vehicles for Covid-19 relief logistical support and medical supply delivery. And, it will donate the use of Lockheed facilities for crisis-related activities, including critical medical-supply storage, distribution, and Covid-19 testing, where needed.
