Key Points
- A top Boeing executive says the government’s plan to take equity stakes is for small suppliers, not major defense contractors.
- Large firms like Boeing are expected to be self-sufficient and fund their own large-scale projects.
- This statement contradicts earlier comments from the Commerce Secretary, who said the administration was eyeing stakes in major defense firms.
- The government’s strategy aims to secure critical industries, like computer chips and rare earths, from foreign influence.
The head of Boeing’s defense division clarified on Saturday that President Donald Trump’s plan to take government ownership stakes in strategic companies is not meant for the industry’s biggest players. He explained the program is designed to help smaller suppliers, not giants like Boeing.
Speaking at the Reagan National Defense Forum in California, Steve Parker, CEO of Boeing Defense, Space & Security, said the government expects large contractors to fund their own major investments. “It really only applies to the supply chain, particularly for the smaller companies,” Parker stated. “I don’t think it really applies to the Primes,” he added, referring to the top-tier contractors like Boeing, Lockheed Martin, and Northrop Grumman.
To make his point, Parker highlighted Boeing’s recent multi-billion-dollar investment in its fighter jet facilities in St. Louis, Missouri, as an example of a prime contractor footing its own bills.
Parker’s comments directly contradict what a senior administration official said just a few months ago. In August, Commerce Secretary Howard Lutnick announced that the Trump administration was actively considering taking equity stakes in major defense firms, including Lockheed Martin. That news caused a rally in the stock prices of several large defense companies.
The discussion is part of a broader Trump administration strategy to boost national security by investing in critical industries where China holds significant influence.
The government has already taken ownership stakes in the chipmaker Intel and the rare-earth mining company MP Materials, and President Trump has indicated that more such deals will follow.
