This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Complexity Of Modern Combat Platforms To Promote Military Support In Service Market, Says Frost & Sullivan

LONDON, Dec. 6, 2012 /PRNewswire/ -- Despite defence budget cuts in many countries, military support in service (SIS) outsourcing is set to increase, mainly due to the complexity of modern combat platforms which need permanent support.

The rising cost of military maintenance, repair and overhaul (MRO), the need to mitigate the increasing complexity of equipment and systems as well as the difficulty of providing resources (cost of staff, complexity of training and staff retention) are all intensifying the pressure on defence budgets. As a result, industry involvement in military SIS will continue to rise as armed forces look to streamline SIS costs.

New analysis from Frost & Sullivan (http://www.defence.com), Global Military Support in Service Market Assessment, finds that the market earned revenues of $49,444.4 million in 2011 and estimates this to reach $59,643.3 million by 2020. The research covers four main military SIS segments: MRO, modernisation, training and simulation, and total solution.

"The modernisation segment has one of the most promising and stable outlooks for the forecast period," noted Frost & Sullivan Defence Industry Analyst Dominik Kimla. "Decreasing defence procurement budgets and the rising prices of new combat defence platforms are resulting in end users looking to modernise equipment rather than replace it."

Shrinking defence outlays, however, remain a key challenge. Many Western forces are downsizing their equipment fleets, resulting in fewer platforms to service in the marketplace. In addition, limited procurement budgets mean that Ministries of Defence (MODs) are unable to replace retired platforms with newer equivalents. The resulting reduction in combat platforms will have a direct impact on military SIS revenue, particularly in Europe.

"It is expected that defence contractors will provide a complex SIS package as part of the main contract for a supply of modern weapons and combat platforms which are already in service," remarked Kimla. "Defence suppliers will also need to demonstrate how outsourcing of SIS can lead to reduced operation costs in both the mid- and long-term to appeal to MoD agendas that focus on cost reduction while ensuring force preparedness."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs