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And for Boeing Co’s customers, saving cash is becoming increasingly important.
It’s long been one of the great mysteries of the defense game about whether companies that make a lot of the stuff used for defense and security, might be able to ratchet down their pricing when, economically at least, it was a rainy day.
Because now, it’s raining buckets.
Jim Albaugh, head of Boeing’s defense business, said on Wednesday at the annual Reuters Aerospace and Defense Summit that his crew was working with their customers (many of whom are strapped for cash) to create a more affordable line of products.
Now, this is not a President’s Day Sale at Macy’s. Albaugh’s planes and weapons cost in the hundreds of millions of dollars and some programs are in the multibillion-dollar range. So cost-cutting here can mean some pretty big numbers.