The land combat vehicle industry is characterized by contrast. While growth is foreseen for some sectors, others are in decline. Specifically, the tracked armored vehicle sector, with scant production orders, modernization, and re-capitalization programs, is in decline. Wheeled armored vehicles, however, in particular the medium- and lightweight categories, hold much promise for the short term, given U.S. Army plans to outfit its Brigade Combat Teams with Interim Armored Vehicles. Long-term prospects for these two sectors will depend greatly on the shape and form of the Army's Future Combat System. Major challenges include excess capacity and competition for capital and human resources; yet, opportunities are presented by initiatives such as the "Army Vision" as articulated by General Eric K. Shinseki, Chief of Staff. Focused research and development is essential to ensure that the United States maintains its competitive advantage on the battlefield, and foreign military sales are essential to industry vitality.
Industry Studies 2000