Contact Information: For further information, contact: Mr. Tim Stanos (202) 452-6990 email: tstanos@avascent.com
Avascent Releases Tactical Wheeled Vehicle Whitepaper
| Source: The Avascent Group
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.
ABOUT THE AVASCENT GROUP
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.