|Last Quarterly Update:||5/26/2014|
|SIC Codes:||3711, 3795|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry manufacture military armored vehicles, combat tanks, and specialized military ground vehicle components. Major companies include AM General, General Dynamics, Lockheed Martin, Oshkosh Corporation, Textron, and certain US operations of UK-based BAE Systems.
The US armored vehicle manufacturing industry includes about 60 companies with combined annual revenue of about $7 billion. The winding down of military operations in Iraq and Afghanistan has reduced demand for armored military vehicles.
Demand is driven by the US military budget, which typically changes with perceived threats to US national security. The profitability of individual companies depends on the effective management of subcontractors and raw materials costs and technological expertise. Large companies enjoy economies of scale in design, manufacturing, and purchasing. While small companies often introduce innovation, large companies are often able to adapt more quickly to the evolving demands of modern warfare. Small companies can compete by providing niche products to prime contractors, and by forming joint ventures with larger contractors. The US industry is highly concentrated: the top four companies account for 80 percent of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include wheeled, armored combat, and tactical vehicles; tracked main battle tanks; infantry fighting vehicles; heavy equipment transporters; mobile bridge systems; and related components.
Like the auto industry, armored vehicle makers use assembly lines to maximize efficiency through increased automation. However, the industry demands greater manufacturing flexibility than auto makers do, as components are ...
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