Lockheed's Coffman Sees Integrated Transatlantic Marketplace in Five to 10 Years

Despite U.S., European Policy Tension, Coffman Sees Integrated Transatlantic Marketplace in 5-10 Years
Even though differences between U.S. and European governments appear at their most strained in recent times, Lockheed Martin chairman and CEO Vance Coffman is arguing for the two sides to start working together to enable more transatlantic industrial work.

The executive was making the case for an "integrated transatlantic defense marketplace" in which governments work together on military requirements and companies on both sides of the ocean can compete equally.

The reason for the required changes, Coffman said, is that without them the defense industry will continue to suffer. "Even if defense spending by governments increases in coming years, it will not be enough to sustain the industrial infrastructure that exists today," he said, adding that "There will still be significant excess capacity within the industry."

The Lockheed Martin chief doesn't appear dismayed by the tense transatlantic political climate, with the U.S. and European countries at odds over American missile defense plans, European Union designs for a separate military force, as well as foreign policy differences regarding engagement of Russia and North Korea. Nevertheless, Coffman said at a dinner kicking off the company's Paris campaign, that "I believe a single integrated transatlantic marketplace will soon be established, 'soon' defined as something during the next five to ten years."

Key decisions at this point have to come from governments, "Industry has now done about as much as it can do by acting on its own," Coffman believes. "We must now have an industry-government dialogue at the highest levels, on both sides of the ocean and across the ocean, if we are to continue the progress that has been made." He maintained that "it is not enough for governments simply to encourage further rationalization and consolidation in the industry and to count on industry to implement these often difficult decisions."

Coffman therefore called on the Bush Administration to continue progress on export reform and devising rules to enable cooperation. "I would suggest that the Bush Administration may want to inject renewed vigor and momentum into the process" of the Defense Trade Security Initiative that was begun by the Clinton government last year.

Coffman said he has seen progress over the last year, particularly as countries have come together to join the Joint Strike Fighter.