Army Secretary Urges Defense Contractors to Enhance Efficiency

On Monday, Army Secretary Pete Hegseth urged employees at Lockheed Martin, the military’s largest defense contractor, to “step up” as President Trump pushes for a significant increase in Pentagon funding to send a clear “message to the world.”

During his visit to the F-35 fighter jet production facility in Fort Worth, Texas, Hegseth emphasized the need for better speed, cost efficiency, and competition, highlighting that small and medium-sized companies should have a fair chance against larger corporations like Lockheed Martin.

This visit followed President Trump’s proposal for a record $1.5 trillion military budget, which was accompanied by sharp criticism aimed at high CEO salaries, stock dividends, and the sluggish performance of some defense contractors in meeting orders.

“Just recently, the president issued an executive order requiring our nation’s major defense contractors to be more proactive,” Hegseth remarked. “And he’s absolutely correct.”

“I think, no, I’m confident that Lockheed will rise to the occasion,” he added.

Hegseth stressed that the focus should be on achieving an “85% solution” quickly, rather than taking decades to find a flawless answer. This, he argued, is essential for the U.S. to stay ahead of its rivals.

He framed Trump’s budget goals for 2027 as a strategic deterrent against adversaries, saying, “This is a message to the world.”

Trump elaborated that the proposed defense budget would enable the U.S. to build a “dream army” capable of ensuring national safety and security.

Moreover, the president suggested that revenue from tariffs would help fund this proposed increase in military spending, explaining that without these tariffs, the budget would remain at $1 trillion.

Trump also criticized defense contractors, urging them to halt dividends for investors and limit executive pay to $5 million.

He specifically singled out Raytheon, a competitor of Lockheed Martin, noting that its CEO had mentioned being “the slowest” at fulfilling orders.

“Raytheon seems to be operating under the impression that this is how things work under the Biden administration, but that’s not true!” he stated emphatically.

As part of his agenda, Hegseth plans to address SpaceX employees in Brownsville, Texas, later on Monday, where he will be introduced by SpaceX CEO Elon Musk.