July 12 , 2007 - Highlights from Vector's July US Military Ground Vehicle Armor Forecast Update
Vector Strategy is releasing the following highlights from the July 2007 update of their US Military Ground Vehicle Armor Forecast:
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Forecasted armor procurement by the US Department of Defense for military ground vehicles is projected to be $4.6 billion in FY07, $3.8 billion in FY08, and $2.6 billion in FY09.
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Armor for military ground vehicles declines in FY10 and beyond; but it remains a substantial market for industry participants.
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The above dollar amounts represent the forecasted procurement by the DoD for armor for deployment / installation on ground vehicles for US military forces (all branches and all ground vehicles, both combat and tactical).
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The dollars amounts do not include any other portion of the ground vehicle nor installation, fielding, etc. for that armor.
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The figures represent the procurement of armor in each given year; i.e. the funds approved by Congress. It does not represent the production or sales that actually occur in that given year.
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2007 includes funding and expected MRAP vehicle procurement as known today.
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2008 assumes that MRAP vehicles will be procured and fielded throughout the entire year in 2008; i.e. that production will not be halted due to mission changes.
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This forecast assumes JLTV armor and vehicle build starts low rate production in 2010 and full rate production in 2012.
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There are two main drivers for the decline in FY09. First, Vector believes that 3 year equipment reset requirements have been "front end loaded" into 2007 procurement (and into 2008 procurement somewhat). Thus these reset requirements drive 2009 procurement volume less than in 2007 and 2008. Second, Vector has forecasted a decline in MRAP armor requirements in 2009 (as compared to that procured in 2008).
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Vector's forecast was refreshed at the end of June 2007 to include industry events occurring since their initial forecast release in early April 2007.
The July release is available for immediate purchase from Vector Strategy and details armor procurement by individual vehicle platform and for modification programs / kits.
About Vector Strategy, Inc. Vector Strategy, Inc. is a private company based in Orlando, Florida that offers reports, publications, and other market research services to the military armor industry. Vector Strategy helps companies stay abreast of technology trends, government procurement, market size and growth, industry players, supply chain issues, and other intelligence that business executives need to make informed decisions and build effective strategic plans.
For more information contact Marcia Price, Vector Strategy at 407-532-7365 or mprice@vector-strategy.com.
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