Vector Strategy Expands US Military Ground Vehicle and Armor Forecast to 2020

SOUTHERN PINES, N.C.--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 forecast’s time horizon by five years, to 2020, and includes a complete forecast of vehicle procurement along with Vector’s 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 Army’s and USMC’s 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 Army’s and USMC’s 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 Army’s 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 Strategy's 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 Strategy’s US Military Ground Vehicle and Armor Procurement Forecast is available 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 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 issues.