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Armored Military Vehicle Manufacturing
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US armored vehicle manufacturing industry includes about 50 companies with combined annual revenue of about $11 billion. Revenue can fluctuate markedly depending on the level of global conflict. Major companies include Textron, General Dynamics, Oshkosh Corporation, AM General, and certain US operations of UK-based BAE Systems.
COMPETITIVE LANDSCAPE
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 industry is capital-intensive: average annual revenue per employee is about $700,000.
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 more often custom built and production runs are shorter. Armored vehicles are assembled in only a few dozen factories in the US, which tend to be about 100,000 square feet or...
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