Why General Electric Didn't Become a Major Military Contractor Like Boeing and Lockheed

General Electric (GE) has long been a major player in the aerospace and defense industry, but it has not achieved the same level of dominance in the military sector as Boeing and Lockheed Martin. This article explores the reasons behind this discrepancy, focusing on the diverse portfolio of GE and the strategic decisions made by the company.

The Role of GE in Military Aircraft and Engines

GE has a significant presence in the military aviation sector. They produce components for aircraft like the F-111A, and they are one of the key suppliers of engines. In the realm of military engines, GE provides options alongside Pratt Whitney (PW) and Rolls-Royce (RR). This diversity in engine supply is a testament to GE's widespread influence within the industry.

GE's Diverse Business Portfolio

One of the primary factors that has prevented GE from becoming a major military contractor like Boeing and Lockheed Martin is the company's diverse business portfolio. GE is a conglomerate, operating in numerous sectors including aviation, industrial, and consumer goods. This diversity means that GE doesn't rely solely on the defense sector.

According to statistics, GE has a broad range of military contracts. For example, the U.S. Navy utilizes GE engines in naval vessels, and every gas turbine-powered U.S. Navy ship since approximately 1976 has been equipped with GE engines. Additionally, GE manufactures critical components for various military aircraft, including the F-14, F-15, F-16, F-18, and C-5 series.

Decisions and Strategies

GE has adopted a strategic approach to avoid putting all their eggs in one basket. As the company has grown larger, diversification has become a key strategy. This means that while GE is deeply involved in aerospace and defense, they also have significant interests in commercial aviation, industrial machinery, and consumer goods.

GE's production of military items is extensive. They manufacture the GAU-8 Avenger cannon, commonly used in the A-10 aircraft, and supply jet engines for various military planes including the F-14, F-15, F-16, F-18, and C-5. Furthermore, GE is responsible for the nuclear reactors in U.S. submarines and aircraft carriers, showcasing the company's deep involvement in critical military technology.

Comparing GE, Boeing, and Lockheed Martin

While GE has a substantial military business, both Boeing and Lockheed Martin have a more focused and substantial presence in the military market. Boeing is heavily involved in commercial aircraft manufacturing, but their military contracts are extensive and a significant portion of their business. Similarly, Lockheed Martin, known for its success in defense and aerospace, has a clear expert position in the military sector.

Ultimately, the reasons why GE did not become as dominant as Boeing and Lockheed Martin in the military market lie in strategic business decisions and portfolio diversification. Despite this, GE's contributions to the military and aerospace sectors remain significant, making them a crucial player in the overall defense landscape.

Conclusion

In summary, General Electric's approach has been to maintain a diverse portfolio that balances military and non-military sectors. This diversification has allowed GE to remain a major player in both commercial and military markets, but with a different prominence than companies like Boeing and Lockheed Martin.