Uphill battle: Low defense spending will continue the industry's decline from its highs

Over the five years to 2017, the Tank and Armored Vehicle Manufacturing industry finally began to slowly recover after taking a direct hit from plummeting demand, though experienced overall revenue declines. Before the five-year period, demand for industry products skyrocketed due to the United States' involvement in two wars; however as the United States began to scale down combat operations in the Middle East toward the beginning of the five-year period, the defense budget was reduced sequestration kicked in and spending on industry products plunged, hurting revenue. Nonetheless, restructuring, combined with a recent increase in demand, has helped industry profit margins grow over the past five years...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Recent stabilization in the defense budget, increasing exports and new contracts have boosted revenue
  • Many of the US’ regional allies have drastically stepped up their defense spending
  • Industry exports are projected to remain high as geopolitical tensions continue to generate foreign demand
  • Industry Report - Industry Products Chapter

    The industry offers a wide variety of vehicles. In particular, armored vehicles vary by the type of propulsion (i.e. tracked versus wheeled) and mission. For instance, infantry fighting vehicles (IFVs) are designed to carry infantry into combat and provide direct fire support, while armored personnel carriers (APCs) are designed to transport infantry, but are only armed for self-defense. Examples of other armored vehicle variants include self-propelled artillery and utility vehicles. Lastly, many armored vehicles are designed or can be upgraded to serve as platforms for multiple missions. For instance, the M113 is primarily an APC, but is also used as an ambulance, mortar carrier, engineer vehicle and command vehicle...purchase to read more.

    Additional Insights for the Tank & Armored Vehicle Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tank & Armored Vehicle Manufacturing Industry are

  • Provision of superior after sales service
  • Undertaking technical research and development
  • Financial structure of the company
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and NATO defense spending in the Tank & Armored Vehicle Manufacturing industry impact industry performance..

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    What's in this report

    What is the Tank & Armored Vehicle Manufacturing Industry?

    This US industry manufactures complete military armored vehicles, combat tanks and specialized components for combat tanks, including self-propelled weapons.

    Industry Products
  • Tanks
  • Tracked armored vehicles
  • Wheeled armored vehicles
  • Industry Activities
  • Manufacturing armored vehicles and parts
  • Manufacturing military tanks
  • Manufacturing self-propelled weapons
  • Manufacturing military all-terrain vehicles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • NATO defense spending
  • World price of steel
  • Trade-weighted index

  • Current Performance
  • Direct hit
  • Trade gains significance and revenue stabilizes
  • Profit and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Expansion
  • Other trends
  • Table: Tank & Armored Vehicle Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tank & Armored Vehicle Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • National Security and International Affairs

  • Key Selling Industries
  • Engine & Turbine Manufacturing
  • Nonferrous Metal Foundry Products Manufacturing
  • Paint Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Structural Metal Product Manufacturing
  • Tire Manufacturing
  • Wind Turbine Manufacturing

  • Products & Services
  • Wheeled armored vehicles
  • Tracked armored vehicles
  • Tanks
  • Chart: Tank & Armored Vehicle Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • US defense spending
  • Foreign demand
  • Technological and environmental change

  • Major Markets
  • Exports
  • US government
  • Chart: Major Market Segmentation for the Tank & Armored Vehicle Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tank & Armored Vehicle Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tank & Armored Vehicle Manufacturing Industry

  • Industry Globalization
    General Dynamics Corp., BAE Systems, Oshkosh Corporation,
  • Table: General Dynamics Corp. - financial performance
  • Table: BAE Systems - financial performance
  • Table: Oshkosh Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tank & Armored Vehicle Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tank & Armored Vehicle Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Federal funding for defense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Abrams Tank
  • A large heavily armored attack vehicle with top-mounted cannon, produced by General Dynamics.
  • Bradley Fighting Vehicle (Bfv)
  • A fully armored, fully tracked tank produced by BAE Systems that is designed to carry mechanized infantry into close contact with the enemy.
  • Ground Combat Vehicle (Gcv)
  • The US army's replacement program for armored fighting vehicles in heavy and Stryker brigade combat teams.
  • Heavy Brigade Combat Team (Hbct)
  • The US army's primary armored force, designed around combined arms battalions that contain Abrams tanks and Bradley vehicles.
  • High Mobility Multipurpose Wheeled Vehicle (Hmmwv)
  • Also known as the Humvee, a military four-wheel drive motor vehicle created and produced by AM General, which has largely supplanted the roles formerly served by smaller Jeeps.
  • Joint Light Tactical Vehicle
  • Vehicle program to replace the current HMMWV with a family of more survivable vehicles and greater payload.
  • Mine Resistant Ambush Protected (Mrap)
  • Vehicles designed to survive improvised explosive device (IED) attacks and ambushes.
  • Stryker
  • An eight-wheeled armored personal carrier produced by General Dynamics.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Tank & Armored Vehicle Manufacturing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Tank & Armored Vehicle Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tank & Armored Vehicle Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tank & Armored Vehicle Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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