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: @forecast1.com

Forecast International, Inc.

22 Commerce Rd. Newtown, CT  06470 USA

 

FOR IMMEDIATE RELEASE

 

Correction Looms for U.S. Defense Electronics Market

 

NEWTOWN, Conn. [March 14, 2006] ― Forecast International’s annual “Overview of the U.S. Defense Electronics Market” is projecting that the market will go into a correction around 2009, when funding and sales will begin to decline.  According to Richard Sterk, Senior Analyst at Forecast International and author of the study, this decline will occur largely because “all of the programs whose development and production were accelerated to deal with the war on terrorism in Afghanistan and Iraq are now reaching completion.”

 

The study predicts that U.S. defense electronics sales will increase from 2006 through 2008.  A drawdown in production will then begin to take effect in 2009 and continue for several years. Over the forecast period of 2006-2015 covered in the analysis, the U.S. defense electronics market will have a likely minimum value of $179.407 billion.  From 2006 through 2008, the emphasis will be on completion of the R&D and production programs currently in place to meet the needs of the war in Iraq.

 

“The defense budget is going back to a pre-9/11 mode, and many programs that were put on hold will have to scramble and compete for money long spent,” said Sterk.

 

The strength of America’s defense electronics industry can largely be attributed to the demand for C⁴I functions (communications and datalink networks).  Sterk said that “network-centric warfare (making all those stand-alone military computer systems talk to one another and share information in a more efficient and timely manner) remains the market buzzword.”

 

Raytheon, Lockheed Martin, Boeing, Northrop Grumman, and BAE Systems will lead the U.S. defense electronics market over the next 10 years (2006-2015) in terms of sales volume and market share. These five companies combined will represent $73.3 billion in defense electronics market sales over the next 10 years.

 

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 analysts, please contact Monty Nebinger (203-426-0800, monty.nebinger@forecast1.com).