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Business Drivers
Due to the nature of government contracts, Lockheed Martin's business is dependent on the political atmosphere in Washington. Because of this, its business drivers (and that of the defense industry in general) are different than that of the general industry.
Defense Contracts
The two most important drivers for defense contractors are the investment account of the Department of Defense budget as well as its anticipation of expansion. Current budget plans are strong since they increase the investment account more than the rate of inflation, and take a particular stance in aiding future aircraft, ship, and space programs, which Lockheed Martin will benefit greatly from. Furthermore, the Supplemental Budget has allocated an additional $7.8 billion (an increase from the President's original $4.4 billion request) for aircraft and aircraft programs, which Lockheed Martin will be a big beneficiary.
Civilian Contracts
Lockheed Martin is a relatively new player in the civilian market. While its size helps it outperform other possible contractors due to economies of scale, it also faces a higher amount of scrutiny from activists. It was forced out of bidding for several Texas contracts due to citizens using the "Don't vote for the company who brought us the $3,000 toilet seat" campaign. Furthermore, citizens have also been against a major defense contractor receiving contracts for human resources, automation, and welfare-for-work programs, which have come at a cost to Lockheed Martin.
