Vector Strategy, Inc,
ORLANDO, Fla: In their newest report for the armor industry, 2007 U.S. Military Ground Vehicle Armor Forecast, Vector Strategy projects that an estimated $20 billion of military ground vehicle armor will be procured by the US Department of Defense (DoD) for US military forces between 2005 and 2013 (nine years inclusive).
In addition, the industry experiences an unprecedented peak in fiscal year 2007 armor procurement. According to Marcia Price, president of Vector Strategy, “Armor procurement in fiscal year 2007 is 159% the level of procurement in fiscal year 2006 – including base and supplemental budgets now under consideration by Congress.”
“This peak is due to the need to repair and replace armored vehicles lost or worn out in current Iraq and Afghanistan operations, to add equipment such as MRAP vehicles to fill recently identified war-fighting needs, to supply armored vehicles to support the surge of additional troops to Iraq, to add and upgrade armored vehicles to improve current and future war-on-terrorism capabilities, and to begin procuring armored vehicles needed to support the Army and Marine Corps plans to add 92,000 active duty troops to the force over the next several years,” says Ms. Price.
Fiscal year 2007 and 2008 military ground vehicle armor procurement is sharply driven by large increases in supplemental funding for force protection and equipment reset.
Vector projects that fiscal year 2010 to fiscal year 2013 armor procurement will decline slightly from 2009 levels, but still remain a substantial market for armor industry participants.
Vector forecasts additional armor procurement for fiscal year 2009 to 2013 (above the DoD's base budget for those years) to address contingency operations in which U.S. forces become involved, to fund additional sustainment of combat vehicles, to provide applique armor to increase the protection level of mine protected vehicles, and to fund JLTV armor procurement.
In fiscal year 2007, light tactical vehicles such as HMMWV's represent 39% of total military ground vehicle armor procurement; medium and heavy tactical vehicles represent 27% of total armor procurement; ASV's, MRAP, and other mine protected vehicles account for 10% of armor spending in 2007; and combat vehicles, such as the Stryker, Bradley, and Abrams, account for 24% of 2007 armor procurement.
