Tank and Armored Vehicle Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

The wars in Iraq and Afghanistan boosted revenue at the start of the past five-year period due to increased demand for US military armored vehicle and tank fleets. However, revenue fell strongly in 2010 as defense spending on tracked and armored vehicles declined and a number of upgrade programs were completed. While the US government will cut funding on tank and armored vehicle manufacturing, demand from foreign governments will help offset a major decline. Still, over the next five years, revenue will shrink marginally as several factors cut into growth. In particular, the army is set to cut its procurement budget for industry items, resulting in lower demand. For these reasons, industry research firm IBISWorld has updated its report on the Tank and Armored Vehicle Manufacturing industry.

Los Angeles, CA (PRWEB) October 02, 2012

IBISWorld expects revenue for the Tank and Armored Vehicle Manufacturing industry to fall 19.5% to $8.2 billion from 2011 to 2012. The industry depends highly on the funding allocated to defense spending from the US government and allied governments internationally. ?This funding is expected to fall away this year and over the next five years as worldwide conflicts decline,? says IBISWorld industry analyst Antonio Danova. ?The ongoing withdrawal of troops from Iraq will negatively affect the industry, and tempered military activity in Afghanistan will curb some demand for spare parts and repairs.?

The wars in Iraq and Afghanistan boosted Tank and Armored Vehicle Manufacturing industry revenue in previous years due to increased demand for US military armored vehicle and tank fleets. ?These conflicts also caused some countries, such as Egypt and the United Kingdom, to upgrade their military fleets,? adds Danova. However, revenue began to fall strongly in 2010 (19.8%) as defense spending on tracked and armored vehicles declined and a number of upgrade programs were completed. Due to recent declines, total industry revenue is estimated to fall at an annualized rate of 4.8%.

The recession has also affected the industry in the longer term, with worldwide governments focusing their financial resources on restoring business and consumer confidence as GDP growth slows. The global economic recession cut many governments' revenue streams and increased major countries' deficits. To repay this debt, government spending will likely decline in the next five years. In the United States, budget cuts in defense will occur in 2012, but funding for tank and armored vehicle procurement has fallen since 2010. In 2012, the army is set to cut the procurement budget for industry items another 19.2%. The industry has a very high level of concentration, due to the fact that the top two players alone generate a large majority of industry revenue. Major players General Dynamics and BAE Systems are the primary recipients of government contracts for tank and armored vehicle production. The relatively stable of number of players has maintained concentration at an almost constant level over the past five years.

Over the five years to 2017, revenue is forecast to decrease. As the US government continues to cut funding for tanks and armored vehicle procurement, industry firms will lose contracts with their largest customers. Still, demand for industry products from abroad will help limit the fall in revenue. Major industry players currently operate abroad, and they will leverage their international market power to increase contracts with foreign governments. Therefore, over the five years to 2017, exports are expected to make up a higher share of industry revenue. For more information, visit IBISWorld?s Tank and Armored Vehicle Manufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This US industry comprises establishments that primarily manufacture complete military armored vehicles, combat tanks and specialized components for combat tanks.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nation?s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith
IBISWorld
310-866-5042
Email Information

Source: http://news.yahoo.com/tank-armored-vehicle-manufacturing-us-industry-market-research-080059128.html

harper lee mega millions numbers the fray seahawks new uniforms 2012 tornadoes in dallas anchorman 2 kentucky basketball