DUBLIN, Ireland, 7 Jan. 2008.Research and Markets has announced "U.S. DoD 2008 Budget Analysis," a new research report.
This Frost & Sullivan research provides major functional classifications for DoD government spending, with an emphasis on the research, development, testing, and evaluation (RDT&E), and procurement sectors for defense industry market participants. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: satellites, aircraft, ships, ground vehicles, and weapons.
An estimated $13,000 million is required to reset and recapitalize worn out army equipment since the army uses the gear at four times the rate for which it was designed. Similarly, the Marine Corps is facing an investment crunch in equipment replacements as are air transport, fighter aircraft, and some classes of ships that are at or near the end of their life cycle. Moreover, the expansion of Army and Marine Corps brigades will necessitate greater budget allocation for equipment procurement. Arms companies that understand the operational needs of units and provide interoperable and reliable products will stand out in the Department of Defense (DoD) market.
"The short-term trend to get armored vehicles to the war zones and give troops some protection against improvised explosive devices (IEDs) has evolved into a concerted plan to upgrade all rolling stock," says the analyst of this research service. "The DoD plans to spend about $12,000.0 million for vehicles such as future combat systems, tactical trucks, Humvees, expeditionary fighting vehicles, Bradley sustainment, Strykers, and Abrams modifications."
Despite the rapid advances in weapons delivery, robotics, logistics, and command and control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) since the first Gulf War, there are several areas of operation wherein technology has not delivered the goods. In such cases, the DoD has fallen back on old-fashioned soldiering and foot patrolling to combat terrorism and insurgencies.
Space-based communications and intelligence assets, in particular, have faced technical delays, although the opportunities for using optical communications and building penetrating radars are numerous. Human intelligence can only be gathered by building relationships over time, and companies that can provide language and culturally relevant analysis services are expected to experience exponential growth.
The DoD is increasingly turning to lead systems integrators (LSIs) to administer major programs since the number of government employees available for such projects is insufficient. "LSIs are looking to partner with smaller companies that can provide niche technologies, raw materials, precision manufacturing, and unique services," notes the analyst. "LSIs can provide the infrastructure and security scaffolding for smaller firms to participate in the DoD market."
