Armored Vehicle Manufacturing
Business for Sale Industry Economics
$2,647,000,000
Revenue
0.89%
Projected CAGR
2005 - 2020
Historical
2020 - 2026
Projection
0.89%
CAGR
$2,647,000,000
Profit
Quick Scroll
Summary
Over the five years leading up to 2020, the Armored Vehicle Manufacturing industry experienced substantial expansion. Combat armored vehicles, such as infantry fighting vehicles, armored personnel carriers, mine-resistant ambush-protected (MRAP) vehicles, self-propelled artillery, and armored utility vehicles, are researched, developed, manufactured, modified, and repaired by industry operators.
Prior to the five-year mark, industry sales plummeted precipitously as US spending on industry goods decreased. However, in the current five-year cycle, the United States started to boost military budgets and scale up key business projects, reversing the trend.
As a result, sector income is forecast to grow at an annualized rate of 3.6 percent to $2.6 billion over the next five years, including a 2.2 percent decrease in 2020 due to the completion of such projects.
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Performance
Over the five years leading up to 2020, the Armored Vehicle Manufacturing market has undergone rapid expansion.
Military armored vehicles, such as infantry fighting vehicles, armored personnel carriers, mine-resistant ambush-protected (MRAP) vehicles, self-propelled artillery, and armored utility vehicles, are researched, developed, manufactured, modified, and repaired by industry players.
Prior to the new five-year cycle, business sales collapsed due to a drop in US military spending on industry goods.
However, during the current decade, a rise in US military expenditures and the acceleration of key business programs aided in the recovery of industry sales from earlier declines.
Despite a 2.2 percent fall in 2020, sector income is expected to grow at an annualized rate of 3.6 percent to $2.6 billion over the next five years.
Outlook
The Armored Vehicle Manufacturing market will continue to grow over the next five years, as military spending increases and new industry projects ramp up.
Furthermore, as global tensions increase international demand for US weapons, industry exports are expected to reverse their previous pattern and rise marginally.
However, military spending could be put under pressure again if sequestration were reinstated and worries about the increasing US budget deficit rise.
As a result, sales for the Armored Vehicle Manufacturing sector is expected to grow at a 0.6 percent annualized rate to $2.7 billion over the next five years.
Industry
This sector includes businesses that manufacture, upgrade, restore, and service military armoured vehicles. In battle, these vehicles carry infantry and ammunition or provide combat assistance. This sector does not have tanks.
Investment
The capital intensity of the Armored Vehicle Manufacturing industry ranges from moderate to high. In 2020, $0.31 is estimated to be devoted to capital for every dollar invested in labor by industry participants.
Armored vehicle production necessitates a significant investment in heavy machinery and vast facilities. Establishments create unusual automobiles that need a large infrastructure to build.
Computer-controlled machine tools are used in machining activities and include systems for coating metals, computer-aided forging applications, and electron beam welding for car production.
Workers are needed to operate machines, execute assembly, and maintain automobiles, hence the sector is strongly reliant on labor. Furthermore, many workers are unionized and certified, resulting in higher average earnings.
Military expenditure on industrial products has varied throughout the five years leading up to 2020, causing sector capital intensity to vary. Operators in the sector adjusted their operations and shut down manufacturing lines in response. Some production facilities were also transformed into less capital-intensive services.
Volatility
The industry of Armored Vehicle Manufacturing is quite volatile. The US military purchased a considerable number of armored vehicles for combat operations in Iraq and Afghanistan just before the previous five-year period.
The military was obliged to significantly expand the acquisition of mine-resistant ambush-protected (MRAP) trucks as a result of enemy forces’ frequent usage of homemade bombs. However, when output decreased, revenue decreased as well.
Volatility has risen in recent months as significant reductions were countered by a pick-up in growth due to exports and steady military expenditures. Long-term contracts, including aftermarket support and research and development, lessen volatility in general.