Is Your Base Safe? Competing for Tactical Wheeled Vehicle Programs in a Constrained Funding Environment
September 25 2009
Tactical vehicle contractors have seen strong growth in their markets over the past few years. Core tactical vehicle programs have driven this growth by way of procurement, upgrades, and remanufacturing to improve and sustain the vehicle fleet deployed to Iraq and, to a lesser degree, Afghanistan. Planned mid- and long-term light tactical vehicle replacement programs were given high priority and visibility by the Army and Marine Corps and had aggressive specifications which contributed to the need to link strong prime contractors with specialized subs. Finally, and most surprising from the historical perspective of the tactical vehicle market, contractors saw high-value, short-term opportunities emerge in non-traditional vehicle segments such as mine protected vehicles and all terrain vehicles. Many primes and suppliers perceive that their role in the tactical vehicle market upswing has established them as part of the industrial base and provided them with all the incumbency advantages such a position would seem to imply. However, there will be a rationalization of primes and suppliers within the tactical vehicle market with no company guaranteed a position going forward.
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Author(s): Jim Tinsley, Kristin White, Chris Greenwood