Boeing bolsters facilities, capabilities as it looks toward future growth 

Boeing is investing in "state-of-the-art production centers" and capabilities as officials wait for a handful of large programs to move past the development cycle and into production, according to the head of the company's defense business.

President and CEO Leanne Caret declined to tell reporters during an online roundtable discussion today how much money Boeing is pumping into those initiatives, only saying the figure is “significant” and the work ranges from assembly facilities to composite centers.

That includes a purpose-built facility for the MQ-25 outside of St. Louis; “a factory in a factory” as part of the large satellite center in El Segundo, CA, “focused on agile, high-rate flexible production for small satellites;” a production facility in Australia tied to airpower teaming; and investments in capabilities such as advanced composites, critical technologies and more, she said.

Amid the work, which Caret said would help Boeing be “as cost effective and as agile as possible,” she also looked to the future of the company’s defense business after executives logged largely flat revenue, hovering around $26 billion, between 2020 and 2021.

Noting that Boeing saw “a number of large wins” in 2018, she emphasized the programs like the MH-139 Grey Wolf, the T-7 trainer and the MQ-25 drone remain in the development cycle.

“That uptick that you'll see in the revenue will tie directly to those production rates [as they] build out,” she said. “So, I'm feeling very bullish about our future there.”

When looking ahead to fiscal year 2022 opportunities, Caret pointed to the Army's Future Long-Range Assault Aircraft competition, adding she expects to see a decision in the middle of this year. Boeing and Sikorsky announced earlier today they had selected Honeywell's HTS7500 turboshaft engine to power their Defiant X helicopter for the FLRAA competition.

Beyond that, Boeing is poised to offer a replacement -- its E-7A Wedgetail -- for the aging E-3 Sentry Airborne Warning and Control System aircraft, a fleet derived from the company’s 707. The request for information comes after the service in the fall indicated its intent to award a sole-source time and materials contract to Boeing to study and analyze its E-7A. Carter declined to answer questions about Boeing’s response.

More recently, the Air Force this week issued a sources-sought notice laying out an FY-23 contract award timeline, followed by a five-year window to deliver at least two manned prototype aircraft.

Caret refused to answer a question about the feasibility of the timeline, saying only: “I’m very excited about the offering we’ll be making.”