Weapon Industry Market Research Reports, Analysis & Trends
Weapons industry comprises companies that operate by creating a complex set of systems and weapons that are manufactured using the latest and the most advanced form of technology, lethality, and probability of employment, and then executed by a diverse mixture of research laboratories, government operated plants, and commercial corporations. The industry includes large, familiar platform manufactures and system integrators are the large size players that are delivering systems across the wide spectrum where the international and wide demographic level operations take place. And smaller, independent sub-contractors and government laboratories that are operating on a much local and regional space and have the limitations up to a certain level are providing the basic building blocks of weapons or they usually have the expertise in delivering niche systems. And apart from this, there is a large group of system and weapons suppliers supporting legacy segments of the weapons industry. And most of the contracts that are handed out tend to be a long term and these long term agreements can be set up in ways that benefit both government and industry, supporters contend. The military has to determine what outcomes it wants, such as x number of airplanes on the flight line or y number of Humvee trucks ready for use each day — and the contractor has to figure out the most efficient and least costly way to deliver that service.
Globally, in today's scenario and conditions of market, most of the military’s logistics and support work is carried out and performed by the private sector, which has a much more efficient and effective infrastructure and capability of delivery at the appropriate time period. But manufacturers of major weapon systems are expecting to see the defense department pursue more aggressive outsourcing where a much better outcome could be expected, given the high demand and requirement from the military. In order to maintain balance and sustainability, major companies are going ahead with the option of giving out the contract for a narrow task, such as a specific repair or maintenance job, manufacturers contend, and the main office is embracing performance-based logistics contracts and giving much larger scope of growth and improvement, for example, Wal-Mart and Ford had generated revenues of more than $259 billion and $164 billion in 2003 compared with $31.8 billion for Lockheed Martin and $50.5 billion for Boeing. Surprisingly even these numbers are deceiving because Lockheed Martin and Boeing derive a significant amount of their revenue from their commercial interests, which accounts for $11.4 billion for Lockheed Martin and $23.2 billion for Boeing.
Weapon Industry Current Trends
Acccording to Deloitte, the yearly military spending on maintenance of equipment, with associated supplies and transportation, has risen and gone upwards of $150 billion. According to Deloitte, tt is a huge percentage of the department of defense discretionary spending. If the trend holds, operations and supports accounts, which is estimated and accounted to be about $80 billion for weapons maintenance and $70 billion for supplies and spare parts, and eventually it will dwarf the US' main office, which is Pentagon’s $100 billion annual budget for procurement of new equipment. The large weapons suppliers often are referred to as the megalithic military industrial complex but they pale in size next to well-known large global corporations. The relatively large sums that the Defense Department is projected to spend on operations and support do not, however, guarantee easy money for industry. Companies in pursuit of opportunities in this sector can expect cutthroat competition both from other firms and from government depots that have powerful allies in Congress. Contractors in this market also will see growing pressure from military customers to lower prices and, in some instances, to relinquish proprietary weapon-system designs to the government so that more of the workload can be shifted to public depots.
Leading Weapon Manufacturers
Major players in the weapons industry include Lockheed Martin, Boeing, Nexter Munitions, Alliant Techsystems Inc, Nammo AS, BAE Systems, General Dynamics-Ordnance and Tactical Systems, Rheinmetall Defence, L-3 Communications Corp, and Olin Corporation.