PPRuNe Forums - View Single Post - F-35 Cancelled, then what ?
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Old 9th Dec 2013, 11:55
  #3799 (permalink)  
kbrockman
 
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IIRC 20% of the B version, less for the other 2.
Also these are numbers from the early days of the F35 program, without the later entry of ISRAEL as an unforeseen major supplier of some of the most advanced and highest value systems (eg, ELBIT).

The truth is that it is Bae systems (+RR on the F35B) that are the only ones that are given the assurance of a certain part of the work, it remains to be seen how much work they will actually offset in the UK, much will depend on where it is cheapest for them to produce these parts (labour costs, exchange rates, ....).

Non of the other ones is certain of their part of the work-share, the only thing they are certain of is that they have a right to bid on work, the lowest bidder that can deliver is going to be the winner, losses generated by unforeseen costs and fluctuating exchange rates after the
bidding and signing of the contract are all taken by the bidders, never by LM.

With the entry of new possible clients it could very well be that work share will decay even further, just look at Japan (a non tier partner) who have the right to produce up to 40% of the Japanese parts in their own industry, Korea will probably also demand something similar , same for other possible new clients.

The only ones who can be certain on a ROI are first and foremost LM and P&W, Northrop, Bae systems and RR and now also ELBIT who factually became a new tier 1 partner because some very crucial things cannot be done without them.
Countries outside the US will not benefit nearly as much as all contracts are in US $.
The notion that they will be free for any nation is just plain ridiculous.

Just read this one year old article and then combine it with what General Bogdan was saying about property rights and the possibility to always go for the lowest bidder in the future and conclude yourself how much anybody will be making outside the key companies.
F-35 Reality Check Ten Years On, Part 2: The Jobs Mirage and Other Stories
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