Lockheed expands training and simulation enterprise.

• Author: Versprille, Allyson

* Lockheed Martin is increasing investments in training and simulation technologies with the expectation that international and domestic demand for such systems will remain strong, said executives for the defense contractor.

"In general, we're seeing continued demand out of the U.S. for training," said David Scott, vice president of business development and strategy for training and logistics solutions at Lockheed. "While there is a scaleback in the overall budgets or a flattening of budgets, there is a recognition that training is an essential component to have a force that is ready to fight."

Michael Blades, a senior analyst at the market research and consulting firm Frost & Sullivan, said the training and simulation market is attractive because while other programs in the defense budget are experiencing cuts, funding for training remains stable. Blades projected that the combined annual growth rate from fiscal year 2015 to fiscal year 2020 for total spending on training and simulation would increase about 1.7 percent per year. That number is close to the rate of inflation, which means training and simulation is a steady market, he said.

Another reason companies like Lockheed would be interested in investing in such systems is because militaries in general want to do more with less, he said. "They want to be able to do more training for readiness with the same amount of dollars."

One solution to that problem is using immersive virtual training as opposed to expensive live training, Blades said.

Scott said demand for training and simulation capabilities is even stronger overseas, especially in areas like the Middle East. "They are proceeding into operations there, and they recognize and now have a stronger need for training," he said. There is a "general recognition that it's not just owning an airplane or a ship or a tank, but you have to have the trained crew to operate it."

One of the main focuses of Lockheed's business strategy is what the company refers to as its "turn-key solutions." Such programs offer a performance-based approach where end-to-end training is delivered as a service.

One of the company's model programs is the Republic of Singapore Air Force Basic Wings Course. Through the course, Lockheed Martin-led "Team 21"--a partnership with Pilatus Aircraft and Hawker Pacific--has delivered 50,000 flying hours and trained more than 300 pilots since 2008.

The Basic Wings Course program falls under a 20-year service provision contract. Through the agreement...