2014-03-06 04:59:03 - U.S. Future Defense Market Opportunities - a new market research report on companiesandmarkets.com
The U.S. Government is facing significant challenges to the overall budget. One of the largest areas of discretionary spending is the defense budget. As budget cuts are contemplated, tough choices will need to be made to produce an acceptable defense budget. One of the principal areas which can and should be changed is in both what is procured and in what quantities.This study looks at the envisioned future defense capabilities and identifies various market opportunities that will appear if those capabilities are fully funded. The majority of the areas identified are modifications of existing technologies focused on the revised capabilities set.Executive Summary- The defense market is shrinking, and many of the traditionally large spending areas will be the most affected.o
Operation and maintenance (O&M) cuts will be the most immediate, with overseas contingency operations (OCO) funding eliminated and cuts to base budget O&M.
o Personnel will receive cuts after 2014, probably in the to percent range.
o Procurement programs will be drawn out, and new procurement will be limited.
o Research, development, test, and evaluation (RDT&E) has already been cut, and funding will continue at slightly reduced amounts.
o Construction funding will continue to be used for the completion of existing projects, but future funding will decline at an annual rate of percent.- The US military will continue its transformation into a more modular expeditionary force, which was already in progress prior to 11 September 2001.o Modular force structures will require more equipment that is easily deployable.
o Cost and technology issues will demand more commercially designed equipment.
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