WASHINGTON, DC--(Marketwire - February 27, 2009) - Leading strategy and management consulting firm, The Avascent Group, today released its current analysis of the tactical wheeled vehicle market. This represents the second in a series of whitepapers authored on the strategic implications for industry of developments in this critical and dynamic sector of the defense market. The firm's assessment reinforces the constraints on growth in this market, but also highlights areas of opportunity as the Department of Defense grapples with reset and recapitalization requirements.

"This market experienced unprecedented growth that was not sustainable; now, as the market normalizes, industry will need to react appropriately," said Jim Tinsley, a partner at The Avascent Group.

With declining supplemental spending on the horizon, the market forecast looks significantly different today than it did even a year ago. As budgets tighten, and legacy programs reach their acquisition objectives, new build competitions take on a much greater significance than ever before. Add to this the proliferation of competitors that have emerged in this market over the last three years, and the challenges become apparent. "The fact is that opportunities are consolidating just as the field of providers has expanded," says Kristin White, an Associate with Avascent. "This creates a new set of competitive dynamics moving forward."

However, a certain set of opportunities may emerge for both organic and inorganic growth during this period. First, as operations in Iraq wind down, the Services will be forced to focus on reset and recapitalization of the fleet. It is yet to be determined exactly what form this will take, and how it will impact future procurement of legacy systems. Second, commercial and government market conditions may lead to attractive acquisition opportunities for defense firms in this space.

Over the next several months, many questions about the future of the tactical wheeled vehicle market will be answered; companies at every stage of the supply chain will be wise to consider the impact on their business strategy.


The Avascent Group is the leading management consulting firm specializing in serving senior executives in the defense, aerospace, homeland security, logistics, technical services and infrastructure sectors. Avascent provides a full range of management consulting services, from strategic planning to market analysis to organizational and operational improvement.

Avascent has extensive experience serving clients across the tactical vehicle market. From major automotive component manufacturers and raw material suppliers to weapon system integrators and armor providers, Avascent helps companies make decisions that sustain market presence and promote growth. Combining deep subject matter expertise with proven rigorous market validation and strategic planning methodologies, Avascent provides invaluable decision support to its defense clients.

Contact Information: For further information, contact: Mr. Tim Stanos (202) 452-6990 email: tstanos@avascent.com