Existing ground combat platforms represent the most technically sophisticated, lethal, and survivable fleet of weapons systems in any military force, past or present. The land combat vehicle (LCV) industry, however, is in decline, characterized by low production rates, constrained demand, and uncertainty over new technologies. A high degree of global competition complicates market strategies. Corporate survival depends on seeking efficiencies through downsizing, expanding product lines, negotiating mergers and partnerships, and adapting current processes for low-rate, high-mix production. Despite these strategies, substantial, costly overcapacity remains, which could translate into monies for research and development (R&D). Current production contracts can sustain the industry for 5 years, but without a consensus for new vehicle manufacture or a robust modernization program, the industry may not retain a viable manufacturing capability in the future.
ICAF Industry Studies 1999