October 15, 2015

Restraints on the U.S. DOD helicopter market limit industry’s prospects

With a small number of new procurement programs scheduled for the coming years, the need for logistical support, upgrades, and the remanufacture of current platforms and subsystems will sustain growth in the U.S. Department of Defense helicopter market.
Opportunities will emerge from the DOD’s demand for innovative systems and solutions to increase the service life of new and existing rotary-winged weapon systems.
Technologies allowing commonality of parts and subsystems as well as easing the maintenance to reduce overall life cycle costs will gain favor.
Analysis from Frost & Sullivan expects military helicopter funding to decrease from $9.99 billion in 2015 to $6.89 billion in 2020, at a negative compound annual growth rate of five percent.
“U.S. DOD budget cuts, looming sequestration and budget uncertainties explain the bleak military helicopter funding forecast,” said Frost & Sullivan Aerospace & Defense Senior Industry Analyst Michael Blades. “While the defense budget has been used as a political bargaining tool for several years, this has not had any effect on the industry so far.”
In May 2015, Army Chief of Staff, Gen. Ray Odierno stated budget uncertainty is “going to put us in a modernization hole for 10 years, and our ability to continue to meet our current missions will be challenged.” Helicopter manufacturers across the U.S. will have to find novel ways of boosting revenues.
“Leading helicopter manufacturers must foster partnerships to remain competitive,” noted Blades. “They should focus on drawing synergies from these partnerships and establishing relationships leading to foreign military sales.”
Saudi Arabia, Taiwan, Iraq, United Arab Emirates and Sweden are among the countries already purchasing U.S. military helicopters. Countries with recent purchase agreements driving future FMS revenues include South Korea, Qatar and Indonesia.

All of this week's top headlines to your email every Friday.



Headlines – November 12, 2018

News Pentagon’s No. 2 explains his lack of satisfaction with the F-35 – When Patrick Shanahan arrived at the Pentagon as the new deputy secretary of defense in July 2017, his impact was unclear. A career in Boeing had brought Shanahan in contact with both the defense and commercial divisions, but he had never worked...

News Briefs – November 12, 2018

Report: Pilot error cause of deadly military plane crash The cause of a military plane crash that left nine people dead outside Savannah, Ga., was pilot error, according to a report by the U.S. Air Force Accident Investigation Board. Nine airmen from the Puerto Rico National Guard died May 2 when the plane plunged onto...
Navy photograph by PO3 Kyleigh Williams

U.S. Navy aircraft crashes in Philippine Sea

Navy photograph by PO3 Kyleigh Williams An F/A-18 Super Hornet lands on the flight deck of the Navy’s forward-deployed aircraft carrier USS Ronald Reagan (CVN 76) during exercise Keen Sword 19, Nov. 2, 2018. Keen Sword is...