How Henkel Is Exceeding Sustainability Goals
If you ask Henkel how it managed to cut its worldwide carbon footprint in half a few years ago, its leaders will gladly let you in on the secret: there isn鈥檛 one.
The impressive reduction is down to common sense and good old-fashioned effort.
Putting in the work: 鈥淥ne focus is on our own sites and production, and we鈥檙e continuously working on this,鈥 said Henkel North America President Pernille Lind Olsen.
- By the end of 2023, the global adhesives and consumer brands manufacturer had fully converted 19 of its worldwide facilities to run on renewable electricity sources, a feat it achieved through on-site energy production including wind and solar, as well as direct purchase of green power from local utility companies.
- Henkel also entered into virtual power purchase agreements, financial transactions through which it buys renewable energy credits that serve to decarbonize geographically diffuse operations.
- In addition, the company hired energy-efficiency consultants to come into its most energy-intensive plants and tell it where and how to cut down on resource use and waste.
Exceeding goals: Thanks to these efforts, Henkel has reduced its carbon footprint by 61%, heading toward its 2025 goal to slash its carbon footprint (from a 2010 baseline) by 65%.
Sustainable personal care: Henkel is always on the lookout for ways to increase the sustainability of its 30-plus beauty and personal care brands, which include Purex and All laundry detergents and Schwarzkopf hair cosmetics.
- For example, the company keeps a formulation database of its more than 200,000 products. In the database, each formula is assigned a compact sustainability report, making it possible for the company to compare profiles 鈥渢o optimize the impact of our footprint,鈥 Olsen told us.
- Last March, Henkel reformulated and repackaged its Dial body washes in order to use bottles made from 100% recycled plastic.
- Henkel has also reduced the amount of virgin plastic in the bottles of Persil laundry detergent, replacing it with recycled content.
Less to landfills: Henkel isn鈥檛 done setting goals. It鈥檚 now aiming to send exactly zero waste to landfills by 2030.
- And it鈥檚 making progress: through partnerships with local waste management companies, in 2023 Henkel converted three of its U.S. sites to redirection rather than disposal of production waste from their operations鈥攖hat is, they have established processes to keep materials out of landfills. Some of the ways they do this are to recycle or reuse items rather than throw them away.
- Meanwhile, some 82% of Henkel鈥檚 global facilities had already been doing the same.
A symbiotic relationship: Pursuing sustainable methods is both a business and moral imperative for the company, which will celebrate 148 years of business in September.
- 鈥淎s climate change becomes a bigger challenge for everyone to tackle, it becomes increasingly necessary to prioritize sustainability as part of your business,鈥 Olsen said.
- 鈥淎nd sustainability is good business for us and our customers. There鈥檚 a price benefit there. For example, when you lower the temperatures or reduce process steps at our industrial process customers, energy and material usage will be lower, maintenance of the equipment becomes less frequent and you can run longer without stopping, which saves money.鈥
Stronger together: 鈥淭o make sure the planet鈥檚 resources can sustain us and our kids for generations, we will need to tackle the sustainability challenge of how to use less energy, fewer materials, less water,鈥 Olsen concluded.
- 鈥淭hat鈥檚 a big challenge, and I鈥檓 a firm believer that it needs to be tackled collaboratively. I believe the business leaders of today play a decisive role in how we will do that.鈥
This story has been edited.
Click Bond Brings AI into Supply Chains
Manufacturers have always been on the cutting edge of tech development and integration鈥攁nd it鈥檚 no different with artificial intelligence. Today, Click Bond, Inc., a manufacturer of adhesive-bonded fasteners for aerospace and industrial use, is finding applications for AI in the supply chain.
The challenge: Supply chain management is an inexact art, according to Click Bond Chief Executive and 17吃瓜在线 SMM Vice Chair Karl Hutter, and technology like AI has the capacity to strengthen operations.
- 鈥淭here are many spots 鈥 [where] a guess has to be taken or padding has to be put in because of the known unreliability of data,鈥 said Hutter. 鈥淭his is where technology has a big role to play.鈥
Improving efficiency: AI can break through these challenges, separating signal from 鈥渘oise鈥 and avoiding presumptions that can cause inefficiencies.
- 鈥淲e need to have a better sense of the supply, the demand, the schedule,鈥 Hutter said. 鈥淭his is where those kinds of tools can fit in鈥攕o we as a supplier can optimize our production runs, meet our customers鈥 needs efficiently and be responsive to just-in-time supply.鈥
- 鈥淎I does that key job of finding what matters and correlating historic data and making predictions in a way a human can鈥檛,鈥 he continued.
Translating data: Because there is no single, industry-wide method for formatting data, it can be difficult for manufacturers to combine their knowledge. Happily, AI can help.
- 鈥淢y data tables might look different than my customers鈥 and suppliers鈥,鈥 said Hutter. 鈥淎I can understand the rules of data structure, and that of our customers and suppliers, and it can be a translator between them.鈥
- For example, Click Bond has supplied products to the Boeing Company for almost 40 years, contributing to every type of product made across its military, civil and space divisions. AI stands to take that collaboration to an even higher level.
Enhancing production: AI tools also help manufacturers during the production process by translating different kinds of data and pointing toward solutions.
- 鈥淸AI鈥檚 translation capability] applies to the technical data environment, too鈥攈ow you go from a model and simulation to a produced part,鈥 said Hutter. 鈥淚t鈥檚 the same thing. How do you do technical data interchange confidently and securely? This technology [can help].鈥
Advice for other manufacturers: Hutter recently took part in a workshop on these tools, and he encourages manufacturers who are curious about the technology to find similar opportunities.
- 鈥淭here is nothing that makes these concepts come to life [like] getting your hands on them,鈥 said Hutter. 鈥淵ou can sit there and furrow your brow and read a bunch of articles, but the best thing to do is to find one of the many opportunities for some hands-on education鈥攁nd you鈥檒l start to understand what these tools can do.鈥
Foxconn Shines a Light on Solar Energy
Manufacturers across the U.S. are taking new steps toward sustainability. For Foxconn鈥攁 consumer electronics contract manufacturer and solutions provider with U.S. headquarters in Milwaukee, Wisconsin鈥攖hat effort is about to get a big boost.
The project: Foxconn is developing a massive field of 2,000 solar panels covering nearly eight acres of land around a retention pond at its Racine County campus in Mount Pleasant, Wisconsin.
- The panels are expected to go live at the end of July, when they鈥檒l generate approximately one megawatt of power, which will be used to manufacture data servers.
- 鈥淭hat鈥檚 about 1,200 metric tons of carbon dioxide saved every year and enough energy to power about 300 American homes,鈥 said Robert Schlaeger, head of U.S. government relations for Foxconn.
The big picture: The project鈥攁 partnership between Foxconn and utilities provider We Energies鈥攊s part of a bigger initiative from Hon Hai Technology Group in Taiwan.
- Hon Hai already uses green energy for about 40% of its power consumption across global operations. It has pledged to run wholly on green energy by 2040 and to achieve net-zero emissions by 2050.
- 鈥淭his is really a top-down approach for the entire technology group under the leadership of our Chairman Young Liu,鈥 said Schlaeger. 鈥淵ou can see how that trickles down to the things we try to achieve at a regional level and within those regions, down to the site level.鈥
The impact: In 2022, the technology group spent $75 million globally on 1,877 energy-saving projects. Schlaeger views sustainability projects such as the Foxconn solar field as an important signal of the company鈥檚 commitment.
- 鈥淎s Foxconn grows and responds to market demand around the world or within the United States, renewable energies demonstrate the company鈥檚 commitment to environmental stewardship across supply chains鈥攖o our customers and to our communities,鈥 said Schlaeger.
The business case: Investments like this one are important to the company鈥檚 long-term future, but they also matter to customers right now.
- 鈥淲e have customers who want to know that they are employing contract manufacturers like us that are producing their product in a responsible manner,鈥 said Schlaeger. 鈥淲hat type of energy are you using? Where does the energy come from? These questions are important to our customers鈥攁nd we want to show them that whether you look to our aspirations as a whole, or down to the site, you can see our commitment to green energy.鈥
Emerson Finds Energy in Sustainability
When Emerson鈥檚 first-ever Chief Sustainability Officer Mike Train talks about his company, his enthusiasm shines through.
- 鈥淲hat we do to enable our customers is huge,鈥 said Train. 鈥淲e have an important role to play鈥攁nd I get a lot of energy out of that.鈥
An aggressive push: The technology and engineering company, headquartered in St. Louis, Missouri, has been making big moves in sustainability over the past few years鈥攂eginning with a goal in 2018 to reduce some of its greenhouse gas intensity by 20% over 10 years.
- At the time, the goal was ambitious, and the company wasn鈥檛 quite sure how it would achieve it. But employees banded together and pulled it off.
- 鈥淲e actually achieved the goal in 2022鈥攕ix years early,鈥 said Train. 鈥淏ut the act of putting out a goal and not knowing exactly how we鈥檇 solve for it 鈥 has been driving the culture of our company. Our employees are proud we put it out there, proud to have participated, and it鈥檚 activated thousands of people to get excited about what we鈥檙e doing.鈥
An inclusive approach: Since then, the company has applied a range of tactics. From 鈥渆nergy treasure hunts,鈥 in which teams search for energy waste in facilities, to renewable energy procurement and collaborations with supply chain partners, Emerson is finding interesting and inclusive ways to make an impact.
- The company has gone from getting 3% of its power from renewables to getting to 49% from those sources. And it now has a commitment to use 100% renewable energy by 2030.
- Emerson is setting other big goals, too, from net-zero operations by 2030 to a zero-waste-to-landfill pledge, along with other water and biodiversity actions.
An effective framework: The company has a three-part approach to its sustainability practices.
- Greening Of Emerson involves the actions Emerson is taking to reduce its own footprint by minimizing waste and engaging its supply chain.
- Greening By Emerson involves the company鈥檚 activities to help a wide range of manufacturing customers improve their own sustainability, often through Emerson鈥檚 automation portfolio and expertise. This, according to Train, is where Emerson has its biggest opportunity for impact.
- Greening With Emerson refers to the company鈥檚 work with government and research organizations on policy and innovation, offering technical expertise and manufacturing perspective to help drive action.
A group effort: Train has seen the company coalesce around these goals鈥攆rom the sustainability team he works with every day (鈥渢hey bring a lot of energy and passion to what we鈥檙e doing鈥) to the rest of the company鈥檚 74,000-person workforce.
- 鈥淭he fun part of sustainability is everyone is learning it together,鈥 Train continued. 鈥淵ou鈥檙e allowed and encouraged to borrow ideas from each other, so the collaborative part of sustainability is an awful lot of fun.鈥
17吃瓜在线, Allies to Biden: Intervene in Port Talks Now
A labor strike on the U.S. East and Gulf Coast strike would have dire consequences for the maritime supply chain, the 17吃瓜在线 and partner organizations the Biden administration this week鈥攚hich is why it鈥檚 vital the administration intervene now to restart stalled labor negotiations between dockworkers and an alliance of port operators and ocean carriers.
What鈥檚 going on: 鈥淓arlier this month, contract negotiations broke down between the International Longshoremen鈥檚 Association and the US Maritime Alliance,鈥 (subscription) reports. 鈥淭he current agreement, which covers about 45,000 dockworkers at facilities including six of the 10 busiest US ports, expires Sept. 30.鈥
- The 17吃瓜在线 and more than 150 other industry organizations on Wednesday urged the administration to 鈥渋mmediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity.鈥
Why it鈥檚 important: Other global shipping-related setbacks and threats mean the U.S. cannot withstand another challenge, the groups said. Continued Houthi terrorist attacks on commercial ships in the Middle East have resulted in 鈥渃ongestion and lack of equipment at overseas ports, carrier capacity issues as they continue to divert vessels away from the Red Sea and increased freight rates.鈥
Precedent set: Last September, after 14 months of negotiations and several work stoppages and walkouts, West Coast dockworkers reached a labor agreement with the Pacific Maritime Association鈥攆ollowing 17吃瓜在线-urged intervention by the Biden administration.
- 鈥淲e witnessed a significant shift of cargo from the West Coast to the East Coast and Gulf Coast ports because of the challenges and uncertainty during the last West Coast port labor negotiations,鈥 said the groups. 鈥淲hile much of that business has remained at the East Coast and Gulf Coast ports, we are starting to see a shift back to West Coast gateways, where a long-term contract is in place, especially as we enter the busy peak shipping season.鈥
Hillenbrand: Sustainability Drives Innovation, Value
Manufacturers across the U.S. strive to make their operations more sustainable. Many are also laser-focused on the equipment they produce and how it can support their customers鈥 sustainability endeavors.
At Hillenbrand鈥攁 global industrial company that provides highly engineered, mission-critical processing equipment and solutions for markets including durable plastics, food and recycling鈥攕ustainability is at the core of everything it does.
The intention: Hillenbrand President and CEO Kim Ryan shared that the company doesn鈥檛 have a stand-alone sustainability strategy, but rather has made sustainability 鈥渢he way we do business.鈥
- Hillenbrand is a signatory to the United Nations鈥 Global Compact, Convention Against Corruption and Women鈥檚 Empowerment Principles.
- 鈥淥ur sustainability journey is guided by our purpose, 鈥楽hape What Matters For Tomorrow,鈥 which was collectively established and is embraced by all Hillenbrand associates,鈥 Ryan said. 鈥淥ur recently released 2023 Sustainability Report demonstrates our continued commitment to this goal as it shows our progress and focuses on our industrial products that positively impact the world around us.鈥
The progress: Highlights of the 2023 report include a focus on product innovation, continued transparency through additional data related to key environmental metrics such as water and waste, and disclosure of three years of Scope 1 and Scope 2 greenhouse gas emissions data. They also include 15 Scope 3 categories.
- 鈥淲ith the release of our fifth annual sustainability report, our journey continues to evolve and improve,鈥 Ryan continued. 鈥溾楳ake It Matter鈥 is a core value at Hillenbrand, and we鈥檙e committed to seeking out innovative solutions that push us toward a more sustainable future.鈥
The angle: The company鈥檚 success in sustainability is driven by its leaders, who ensure that the value is deeply ingrained in day-to-day operations.
- 鈥淪ecular and global macroeconomic trends are now driving the need to adapt and engage associates, customers and stakeholders more than ever,鈥 Ryan told us. 鈥淭aking into account these trends allows us to continue working toward a more sustainable future by providing innovative solutions.鈥
The value: Ryan sees Hillenbrand鈥檚 sustainability efforts鈥攚hich the company sees as being supported by the three pillars of people, products and partnerships–as a value add for everyone.
- For example, by designing more-efficient systems that produce more sustainable products, Hillenbrand is committed to creating industrial solutions that have a positive impact on the world.
- Whether it鈥檚 helping customers reduce energy emissions or using Hillenbrand鈥檚 technology to produce more sustainable packaging, customers can reap the benefits of this commitment.
- 鈥淔or us, there has been great value,鈥 Ryan concluded. 鈥淚f you approach this as a cost center, that is what it鈥檚 going to be for you. If you approach this as something that could actually create value for you and your customers, then I believe that鈥檚 what it has the opportunity to become.鈥
Further reading: Learn more about Hillenbrand鈥檚 commitment to sustainability .
In Search for Workers, One Manufacturer Pulls Out the Stops
Marvin, a window and door manufacturer based in Warroad, Minnesota, is looking thousands of miles south to fill job openings (, subscription).
What鈥檚 going on: Marvin employs about 700 people at its Warroad location. With older-generation workers retiring at the rate of about one employee a week and a town population that hasn鈥檛 grown in decades, the company 鈥渃ame up with a recruitment plan called 鈥楾he Path North,鈥 which aims to find workers in Puerto Rico and Florida willing to uproot their families and settle in a cold northern town鈥濃攂ut it鈥檚 proving a difficult sell, even with generous relocation bonuses and temporary housing.
- Unemployment in Puerto Rico and Florida is low, so Marvin is fishing for talent in relatively sparsely populated ponds.
- Of the 115 workers who came from Puerto Rico in the past eight or nine months, just 63 remain at the company.
- Marvin has 10 other locations throughout North America.
Why it鈥檚 important: Marvin鈥檚 challenge is emblematic of 鈥渕anufacturing in America today. The U.S. population is barely growing, baby boomers are exiting the workforce,鈥 many young people are unaware of the many聽advantages of working in manufacturing and 鈥淸t]here is little political will for lasting immigration reform that could fill workforce gaps.鈥
- If current trends continue, the U.S. will have 2.1 million open manufacturing positions by 2030, according to a joint study by Deloitte and the Manufacturing Institute, the 17吃瓜在线鈥檚 501(c)3 workforce development and education affiliate.
Well worth it: Still, for those who come to Marvin, the rewards are significant.
- The company helps employees find permanent housing and is even an investor in a local apartment complex.
- There is job security, too. When orders slowed at one of its factories a few years ago, the company offered cash bonuses to employees willing to relocate to Warroad.
- Marvin has also helped Warroad schools hire Spanish-language translators to assist the children of new hires.
The final say: 鈥淭apping into new talent pools is especially critical in areas, whether it鈥檚 done via relocation support, engaging 聽populations or participating in initiatives such as the Manufacturing Institute鈥檚 program, which is building connections between the military community and the manufacturing industry by bringing in new workers,鈥 said MI President and Executive Director Carolyn Lee. 鈥淲e need to engage all talent pools to fill the 500,000 jobs in manufacturing today.鈥
Manufacturing in 2030: The Opportunity and Challenge of Manufacturing Data
As manufacturers move toward building smarter factories with connected machines, the data those systems produce can offer a host of benefits: improved efficiency, better productivity, informed decision-making, value creation and, ultimately, competitiveness. Yet becoming a data-driven business comes with its share of challenges. In this year鈥檚 Manufacturing in 2030 Survey, , the 17吃瓜在线鈥檚 Manufacturing Leadership Council sheds light on the successes and opportunities for how manufacturers are transforming their operations with data.
Security and privacy concerns: As factories become more connected, cybersecurity becomes a greater imperative. For this reason, survey respondents validated that both data security and data privacy are essential.
- More than 90% of respondents have a formal or partial policy on data security and data privacy.
- About two-thirds of manufacturers have a formal or partial policy on data quality.
- More than 60% have a corporate-wide plan, strategy or guidelines for data management, but only 15% follow the plan in its entirety.
How data is used: As manufacturers advance along their M4.0 journey, data is becoming their lifeblood, driving insights and decision-making. Yet the survey revealed a gap between available data sources and their utilization, a notable area for improvement as the industry looks toward the future.
- Spreadsheets are still king: 70% of manufacturers enter data to them manually, and 68% still use them to analyze data.
- 44% of manufacturing leaders say the amount of data they collect is double what it was two years ago, and they anticipate it will triple by 2030.
- While nearly 60% of manufacturers use data to understand and optimize projects, there is a shift toward using data to make predictions about operational performance, including machine performance, in the next decade.
Business impact: Most manufacturers leverage data to find ways to save money or promote business growth. However, less than half have a good understanding of the dollar value of their data.
- Only about 25% of manufacturers have high confidence that the right data is being collected.
- Most manufactures have only moderate confidence in their analytic capabilities.
- Top challenges include data that comes from different systems or in different formats (53%), data that is not easy to access (28%) and lack of skills to analyze data effectively (28%).
- However, despite those challenges, 95% of manufacturers say data makes for faster and/or higher-quality decision-making.
The bottom line: An overwhelming majority of manufacturers (86%) believe that the effective use of manufacturing data will be 鈥渆ssential鈥 to their competitiveness. But to realize data鈥檚 potential, manufacturers must figure out how to organize and analyze their data effectively, ensure that their data is trustworthy and align their business strategy closely with their data strategy.
Explore the survey: Get a deeper look at the current state of data mastery in manufacturing. to download your copy.
In It for the Long Haul: C.H. Robinson Takes on Sustainability
It鈥檚 not every day that an international company meets an ambitious sustainability goal two years early. But last May, that鈥檚 exactly what happened at 119-year-old transportation logistics provider C.H. Robinson.
- The goal under discussion: a company-wide reduction in intensity of Scope 1 and 2 emissions鈥攖hose emissions generated by the company鈥檚 own operations鈥攐f 47% (more than the 40% targeted). C.H. Robinson had previously calculated meeting the objective by 2025.
Simple but effective: 鈥淢ost of it was looking at where we could find inefficiencies鈥 and correcting them, said C.H. Robinson Vice President of Environment, Social and Governance Rachel Schwalbach. Some changes came from suggestions 鈥渙ur own employees brought forward: LED lighting, responsible use鈥 of electricity.
- Efforts also included a marked increase in the company鈥檚 use of renewables generally. From 2019 to 2023, C.H. Robinson renewable-energy purchases rose 40%.
Not an either/or proposition: The Eden Prairie, Minnesota鈥揵ased company鈥攚hich solves logistics challenges for clients through freight forwarding and other innovative transportation solutions鈥攊s proof positive that businesses don鈥檛 have to choose between good environmental stewardship and profitability.
- In fact, 鈥渟ometimes the sustainable option is actually the less expensive option,鈥 Schwalbach told the 17吃瓜在线. 鈥淐.H. Robinson is working with suppliers every day to drive out waste, and often that鈥檚 been because we鈥檝e looked at it through a lens of cost savings or time reduction. Now it鈥檚 also through the lens of sustainability.鈥
- What鈥檚 more, 鈥渋f you鈥檙e approaching sustainability right, it should be tied to your overall business strategy. Sometimes it鈥檚 as simple as making sure you鈥檙e compliant with rules and regulations鈥 as you meet sustainability requirements.
A competitive advantage: Reducing the footprint of operations can be a competitive advantage for manufacturers, too.
- 鈥淲e get asked about sustainability by nearly all our stakeholders, so it really has to be a part of strategic decision making across the business,鈥 Schwalbach continued. 鈥淥ur shippers are also getting asked about [sustainability] by their investors and customers. People across the business are thinking about it, so it鈥檚 [to our advantage to] make sure it鈥檚 integrated across all areas.鈥
No business is an island: Businesses must keep in mind that sustainability is a shared interest, and the environment鈥檚 health is best served by teamwork, not isolated efforts, according to Schwalbach.
- 鈥淎s companies continue to put big [sustainability] goals out there, I cannot emphasize enough the need for collaboration across industries, as clich茅d as it sounds,鈥 Schwalbach said. 鈥淗aving people who are willing to come to the table and say, 鈥楬ey, let鈥檚 figure this out together,鈥 is going to be pretty critical.鈥
- For C.H. Robinson, that means engaging with customers, carriers and a broad range of other stakeholders.
Supporting climate-friendly practices: The right moves by policymakers can also help support the private sector鈥檚 sustainability efforts.
- 鈥淎s we鈥檙e looking increasingly at alternative fuels and electric vehicles here in the U.S., we need an electric grid that can support the transition to a lower-carbon economy,鈥 Schwalbach said. 鈥淐ontinuing to invest in [strengthening] the grid will help us invest in the right technologies. We need to be able to move forward quickly in a way that doesn鈥檛 cause disruption to the supply chain and transportation.鈥
- Companies want clarity around regulations, too. 鈥淭here are so many [regulations] coming out right now, and companies want to know, 鈥楬ow do I get the right [climate-related] data? How do I make sure the data are accurate?鈥欌
In for the long haul: So what鈥檚 next for C.H. Robinson? A continued focus on conservation, for one thing.
- 鈥淵ou meet your goals, and that鈥檚 really exciting, but there鈥檚 no time to sit around,鈥 Schwalbach said, adding that the company is now in the process of figuring out 鈥渨hat new sustainability goals will look like for carbon reduction.鈥
- Ultimately, those goals will be met by ensuring a commitment to the environment remains a company-wide focus, she told us.
- 鈥淒oing sustainability well means it鈥檚 integrated. C.H. Robinson is a 119-year-old company, and sustainability is about making sure we鈥檙e going to be successful for another 119 years.鈥
Lockheed Martin to Aid in Missile Production
Lockheed Martin is helping strengthen the U.S. defense industrial base ().
What鈥檚 going on: The defense contractor鈥檚 Space Systems business unit recently finalized a modification contract deal to 鈥減rovide systems engineering, test planning and long lead material to support missile production鈥 to the U.S. Navy鈥檚 Strategic Systems Programs.
- The contract, valued at $99 million, is expected to be finished by Feb. 2, 2027.
Why it鈥檚 happening: 鈥淣ations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment.鈥
- Spending by countries on defense capabilities鈥攊ncluding missiles鈥攈as picked up in recent years, following Russia鈥檚 invasion of Ukraine ().
- 鈥淟ockheed鈥檚 weapon systems include precision strike weapons with long standoff ranges to keep pilots and aircraft out of harm鈥檚 way.鈥
Why it鈥檚 important: The growing number of global threats now confronting the U.S. and its allies mean we must be prepared, and manufacturers such as Lockheed Martin are a critical part of the equation.