KIRKLAND, Wash., 8 Nov. 2007. A new research report, "Federal Supply Code J015: Maintenance and Repair of Aircraft Structural: Historical Revenues, Trends, and Participants," is available from G2 Solutions.
The 103-slide research note AB 075 contains six years of Department of Defense (DoD) MRO spending (2001-2006), including a DoD spending forecast from 2007 to 2011. It includes market share and revenues by year for Tier 1 and Tier 2 suppliers, while linking key company contracts and capabilities to those revenues. The research note also provides a platform-specific opportunity analysis, intended to identify capability gaps likely to emerge between the anticipated retirement of specific airframes and their successors.
In light of continued deployment and increasing platform age DoD spending in FSC J015 has more than doubled, from about $1.2 billion in FY 2002 to almost $2.4 billion in FY 2006.
U.S.-based defense electronics giants are dominant in this space, with 13 companies accounting for $2.2 of the total $2.4 billion spent.
The number of DoD/commercial partnerships is skyrocketing, along with the number of physical contracting locations. The DoD is hemmed in between falling active force numbers and an escalation in deployments and maintenance needs.
Small companies who once saw inconsistent contracts are finding consistent year-over-year work in the low millions of dollars. Business models built around creative outsourcing of deployed aircraft maintenance and aircraft recapitalization are likely to find greater traction in such a paradigm.
