Press Release

Contact: Richard Sterk, Sr. Aerospace and Defense Analyst

Phone: (203) 426-0800

Fax: (203) 426-4262

Web site: www.forecastinternational.com

E-mail: Richard.sterk@forecast1.com

Forecast International, Inc.

22 Commerce Rd. Newtown, CT  06470 USA

 

FOR IMMEDIATE RELEASE

 

Remnants of Crisis Buying Just About Over

 

NEWTOWN, Conn. [January 23, 2007] ― “Signs of decline are appearing on the horizon.” So says Richard Sterk, Senior Analyst at Forecast International,  in referring to an anticipated drawdown in U.S. defense electronics spending.  In its annual “Overview of the U.S. Defense Electronics Market,” Forecast International is projecting that the market will begin decreasing in value from $14.9 billion in 2008 to anticipated sales worth $6.8 billion in 2016.  The total market over the 10-year period 2007-2016 covered by the analysis will have a value of at least $107.5 billion.

 

According to the Forecast International assessment, the market will realign back to a balance of about 50/50 where as one production run ends, development of a new, next-generation system begins, thus keeping the playing field level.  “One may actually see a somewhat underfunded market for a few years to make up for the rushed spending and borrowed funding after 9/11 for operations in Afghanistan and Iraq,” Sterk said, adding, “the proverbial saying ‘rob Peter to pay Paul’ holds true and now Paul is coming to collect.”

 

On a brighter note, with the United States being a technologically based market society, continued advances in the field of defense electronics can be expected.  Two areas likely to see big gains in the future are nanotechnology and cybernetics – the melding of human and technology interfaces, which at the moment seems more like science fiction than reality.  Unfortunately, moving such technology from the drawing board to actual field use may take some time. 

 

Northrop Grumman, Raytheon, General Dynamics, Rockwell Collins, and Lockheed Martin will lead the U.S. defense electronics market over the next 10 years based on forecast sales volume and percentage of market share.

 

“Overall, the ‘crisis reaction’ to the 9/11 terrorist attacks and the hunt for weapons of mass destruction in Iraq is now over,” Sterk said, “although the consequences of these actions are still being felt.” 

 

Forecast International, Inc., is a leading provider of Market Intelligence and Analysis in the areas of aerospace, defense, power systems and military electronics.  Based in Newtown, Conn., USA, Forecast International specializes in long-range industry forecasts and market assessments used by strategic planners, marketing professionals, military organizations, and governments worldwide.  To arrange an interview with Forecast International’s editors, please contact Ray Peterson, Vice President, Research & Editorial Services (203-426-0800, ray.peterson@forecast1.com).