Donald Trump's tweets targeting Boeing and Lockheed Martin won't lower defense costs much but may give the president-elect the upper hand in procurement talks, two military analysts told CNBC on Friday.
"This is going to embolden government officials to go out and pursue aggressive deals, and it's going to perhaps sharpen the demeanor of corporate managements who know they're going to get Twitter-spanked by the president-elect or the president if they are too greedy," Cowen's Roman Schweizer said on "Power Lunch."
Retired Army Col. Jack Jacobs said on the show that Lockheed's cost overrun came from new requirements put in place to extend the F-35 program, including maintenance and operational fixes for the stealth combat aircraft. While the program is extremely expensive, the cost couldn't go much lower, he said.
"It's not going to save zero money, but it's not going to save a lot," he contended, referring to Trump's tweets.
Overall, developing military operations is costly, and if Trump seriously intends to reboot the nuclear arms race, he will need all the extra cash he can get, Jacobs said.
"We do need to spend a lot of money on refurbishing the systems we have and replacing some of the systems … with new, more efficient ones," Jacobs said, adding that that doesn't require increasing the number of warheads, but slashing the number of delivery vehicles.
"The Russians and the Chinese are doing the same and we definitely have to keep pace, but we don't have to increase the arsenal," Jacobs said.