Business

March 27, 2013

Forecast International sees intensifying competition in the medium/heavy military rotorcraft market

Forecast International is projecting that 4,796 medium/heavy military rotorcraft will be produced between 2013 and 2022.

The Connecticut-based market research firm estimates the value of this production at $114.4 billion in constant 2013 U.S. dollars. The company defines a medium/heavy rotorcraft as one having a gross weight of 6,804 kilograms (15,000 pounds) or greater.

Annual medium/heavy military rotorcraft production has grown steadily since 2005. The Forecast International study projects that this growth will continue into 2013, when production is forecast to reach 615 rotorcraft. Thereafter, however, the study projects that yearly production will enter into a period of gradual decline, falling to only 380 rotorcraft by the year 2022.

This anticipated decline is attributable to several factors. The budgetary environment in the United States and many other nations has become severe, and high levels of government debt are forcing officials to look for areas, such as military budgets, in which to reduce spending.

Meanwhile, a number of key military rotorcraft acquisition programs are well into their production runs and will soon run their course. Other programs have been stretched out, with smaller annual procurement lots. At the same time, few major new procurement programs have emerged that would help keep overall build rates growing. Order backlogs at manufacturers are declining. As the market shrinks, the competition among manufacturers for market share will become ever more fierce.

Beyond the forecast timeframe, the study points to the U.S. military’s Future Vertical Lift program as being especially important to the long-term future of the military rotorcraft industry. The FVL project involves the development and manufacture of a new rotorcraft family to meet future U.S. attack, scout, and utility rotorcraft needs. Service entry is tentatively planned for around 2030. U.S. military acquisition of FVL-based rotorcraft, combined with possible export sales, means that the market potential for such a rotorcraft family is substantial. According to Forecast International senior aerospace analyst Raymond Jaworowski, “The contractor or contractor team ultimately selected to produce the FVL series could be in a position to eventually dominate the military rotorcraft market.”




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


 
 

 

Headlines November 21, 2014

News: Dempsey lays groundwork for larger 2016 defense budget - The top U.S. military official on Wednesday made the case for growing the base defense budget significantly over the $535 billion spending cap imposed by Congress for fiscal 2015.   Business: Boeing can bill $61 million that Pentagon withheld for months - The Pentagon withheld $60.5 million...
 
 

News Briefs November 21, 2014

Obama aide: U.S. should look at Ukraine military aid A senior aide of President Barack Obama says he believes the U.S. should consider giving Ukraine lethal, defensive military assistance to get Russia to think twice about its destabilizing behavior. Tony Blinken, the deputy national security adviser, cites serious violations by Russia of agreements not to...
 
 
Air Force photograph by SrA. Divine Cox

Kunsan AB hosts Exercise Max Thunder 14-2

Air Force photograph by SrA. Divine Cox A South Korean air force F-15 Strike Eagle lands Nov. 17, 2014, during Max Thunder 14-2 at Kunsan Air Base, South Korea. U.S. Air Force, Army, Marine Corps and Navy personnel and aircraft...
 

 
LM-facility

Lockheed Martin opens Surface Navy Innovation Center

Lockheed Martin has opened the Surface Navy Innovation Center in Moorestown, N.J., to support the development of new technologies for the U.S. Navy. The SNIC is a research, development and demonstration facility that brings tog...
 
 
raytheon-test

Raytheon successfully demonstrates integrated electronic warfare capabilities

EL SEGUNDO, Calif. – Raytheon, in collaboration with the U.S. Navy, successfully demonstrated an end to end, first of its kind, integrated electronic attack system during flight tests at the Naval Air Weapons Station Chi...
 
 

Three bases identified as F-16 aggressor candidate bases

U.S. Air Force photo by Tech. Sgt. Joseph Swafford Jr. A U.S. Air Force F-16 Fighting Falcon fighter aircraft assigned to the 18th Aggressor Squadron lands at Eielson Air Force Base, Alaska, Oct. 6 during RED FLAG-Alaska 15-1. RF-A is a series of Pacific Air Forces commander-directed field training exercises for U.S. and partner nation...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>