May 22, 2012 - Vector Strategy Releases 2012 Edition of Their Armor Material Requirements Report for US Military Ground Vehicles
Vector Strategy has published the 2012 edition of their Armor Material Requirements For US Military Ground Vehicles. This new edition is available for immediate purchase and electronic delivery.
Although the 2012 report presents the same trends for overall vehicle armor material requirements as Vector Strategy's 2011 release, there are three significant changes to future armor material requirements for US military ground vehicles when one compares the two report releases.
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The 2011 report indicated a market retrenchment, where “retrenchment” represents a gentler way of saying “bottom”, in FY12-13. The current outlook shows the market reaching a maximum retraction in FY14.
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The 2012 report calls for a deeper, or more severe, market retraction.
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Although both the 2011 report and this current report indicate a market recovery through FY20; the 2012 report indicates a lower FY20 requirement for vehicle armor materials.
The reason for the more pessimistic outlook of the 2012 report is the reduced funding requirements both the US Army and the USMC presented in their FY13 budget requests that were released to the public in early February 2012.
The Services have reduced their outlook for FY14 to FY20 vehicle procurement by an average of $2.2 billion annually when one compares what they were outlining last year to what they indicated in their FY13 budget request and in their current vehicle modernization plans.
The US Army, in particular, appears to have front-end loaded cuts in vehicle procurement funding in FY14 to FY16, at the expense of production line loading during those fiscal years. This provides them with more funding available in FY17 to FY20 for new vehicle modernization programs.
Although Vector Strategy has added “reasonable upsides” back into their scenario for FY13 to FY16 (i.e. Vector Strategy added requirements for programs they believe Congress will fund to support the industrial base against the recommendations of the US Army), the 2012 outlook is still grimmer than the outlook Vector Strategy presented in their 2011 report release.
More information on Armor Material Requirements For US Military Ground Vehicles can be found on Vector Strategy's 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 offers reports, publications, and other market research services to the military armor industry. Vector Strategy advises companies 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 Ms. Marcia Price, Vector Strategy at 910-585-6228 or mprice@vector-strategy.com.
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