Vector Strategy has released an expanded forecast with the September
2010 publication of their US
Military Ground Vehicle and Armor Procurement Forecast. This new
release extends the forecasts time horizon by five years, to 2020, and
includes a complete forecast of vehicle procurement along with Vectors
usual coverage of future armor procurement.
“Many of our
clients asked us to extend our forecast to 2020. We built our 2016 to
2020 vehicle and armor procurement forecast by studying the US Armys
and USMCs vehicle modernization plans. The Department of Defense does
not provide a detailed funding outlook beyond 2015, but we do.”
According to Marcia Price, President of Vector Strategy, Many of our
clients asked us to extend our forecast to 2020. We built our 2016 to
2020 vehicle and armor procurement forecast by studying the US Armys
and USMCs vehicle modernization plans. The Department of Defense does
not provide a detailed funding outlook beyond 2015, but we do.
Procurement of ground vehicles and armor is contracting after the surge
market of 2007 to 2009. MRAP and MATV have provided a soft landing for
some supply chain participants, but the industrial base will be
challenged for several years. By extending their forecast through 2020,
Vector Strategy is providing clients with a clear view of what market
stability looks like after rescinding from a wartime surge. It is
important to understand how JLTV, Ground Combat Vehicle, and other
future vehicle modernization programs will support the market in the
future.
The new
forecast was released on September 7, 2010 and is available for
immediate purchase and electronic delivery.
Ms. Price continues, The major assumption within our forecast is that
future vehicle and armor procurement will be funded primarily with base
budget dollars. We forecast some supplemental funding for overseas
contingency operations and fleet reset in the next two to three years,
but this funding source is shrinking quickly. The biggest challenge the
industry faces is the US Armys ability to develop well defined and
achievable vehicle modernization plans that Congress will support. The
second challenge is implementing those modernization plans in an
environment of constrained funding. Tradeoffs will have to be made.
Vector Strategys September
2010 release also provides a complete forecast of total spending on
US military ground vehicles, not just total armor procurement. We have
always used a vehicle forecast to drive our projection of armor
procurement, but extending the forecast to 2020 required us to analyze
past and current vehicle funding more ardently.
More information about Vector Strategys US
Military Ground Vehicle and Armor Procurement Forecast is available
on Vector Strategys website at www.vector-strategy.com.
Follow Vector Strategy on twitter to get insight on industry news and
commentary at www.twitter.com/vectorstrategy.
About Vector Strategy, Inc. Vector Strategy provides forecasts
and services that advise companies in the military vehicle and armor
industry of technology trends, government procurement, market size and
growth, industry players, and supply chain is
Source: Business Wire
