Near-Term Growth Expected in Medium/Heavy Military Rotorcraft Market

Published on ASDNews: Mar 16, 2010

(Newtown, Conn., March 15, 2010) — In a new study, “The Market for Medium/Heavy Military Rotorcraft,” Forecast International projects that 4,319 such rotorcraft will be produced during the 10-year time period between 2010 and 2019. The value of this production is estimated at $92.3 billion in constant 2010 U.S. dollars. In general, Forecast International defines a medium/heavy rotorcraft as one with a gross weight that equals or exceeds 6,804 kilograms (15,000 lb).

The projections contained within the new Forecast International study indicate that the medium/heavy segment of the military rotorcraft market will experience strong growth in the near term. Some decline in the market, though, is anticipated in the longer term. On an annual basis, production in the medium/heavy military segment is expected to grow by more than 25 percent in the first half of the forecast period, from 391 rotorcraft in 2010 to 500 in 2014. A combination of factors is driving this growth, including an influx of new models onto the global market as well as continued robust rotorcraft procurement by the U.S. military services and others.

The steady rise in output, though, will not extend into the second half of the forecast timeframe. Beginning in 2015, annual production in the medium/heavy military sector is projected to trend downward, dropping to a level of 376 units by 2019. By this point of the forecast period, production for a number of high-volume procurement programs will be nearing an end, and many of the production ramp-ups for once-new rotorcraft models will have crested.

The Forecast International study also includes market share projections by company for the 10-year forecast timeframe. These projections indicate that Sikorsky will lead the market during this period in both unit production and production value.

According to Forecast International senior aerospace analyst Raymond Jaworowski, “Sikorsky benefits from a solid business foundation of strong U.S. military procurement, as well as export sales, of Black Hawk and Naval Hawk helicopters.” Other major players in the medium/heavy military rotorcraft market will include Boeing, the NH Industries consortium (of AgustaWestland, Eurocopter, and Fokker), and Russian Helicopters.

Statement by AIA President and CEO Marion C. Blakey

January 28, 2010

Arlington, VA -

We’re very pleased that President Obama is making it a priority this year to double exports, enforce trade agreements and reform export controls consistent with national security. Trade expansion and export control modernization are longtime priorities of AIA and recognition of their importance by the President sets a positive tone for action this year.

In particular, we’re looking forward to seeing the recommendations from the interagency working group that he established in August to undertake a comprehensive review of the U.S. export control system. Reforms of the system will grow high-skill, high-wage jobs, keep America’s defense industrial base competitive and sustain its ability to provide America’s military and our close allies with the best technology at the best price.

Among the notable omissions in the speech was any mention of aviation. In particular, the Next Generation Air Transportation System that will transform the way Americans travel as we replace the 1950s era radar-based system with a precision satellite-based system. It is infrastructure that is a major catalyst for jobs and should be included in any jobs bill.

AIA is squarely on the record with the facts: The total number of direct and indirect jobs generated by an approximate $6 billion investment in NextGen equipment is more than 150,000 through 2012, with 30,000 jobs generated the first year. According to our research, there are already 2,436 manufacturing, maintenance and installation facilities operating in every state of the union. Investment in NextGen will add more jobs to these already established and productive facilities.

Another notable omission was NASA and the future of our manned space program. While President Obama stressed the importance of technology and education to our competitiveness and economy, NASA is a key contributor to those fundamentals for our nation. A robust and well-funded space effort that includes a program of manned exploration beyond Low Earth Orbit is a wonderful source of inspiration for America’s youth to pursue high level science and technical education and careers. We must reach for the stars to provide that inspiration.

Finally, the President’s recognition of the need for small businesses to obtain credit is welcomed by all AIA members, but particularly by our smaller suppliers who have been stymied in their efforts to invest and innovate by a weak credit market. This, along with the tax proposals, will help small businesses boost our economy to health.

Who to Contact
Media Contact:
Alexis Allen
(703)358-1075
alexis.allen[at]aia-aerospace.org

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Betty Odeneal and Alexa Bui are the principles of Agenté Technical.

We are located in Arlington, Texas, just minutes from the DFW Airport and home to the new Dallas Cowboys stadium.

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AIA News 2009
Aerospace Industry: An Economic Stimulus

“The aerospace industry is being overlooked as a job generator,” said Blakey. “Our benefits are global and don’t end at the water’s edge.”  In her remarks to nearly 400 members of the news media, government and industry at the Association’s 45th annual Year-end Review and Forecast Luncheon, Blakey said that investment in aerospace is a proven job and economic multiplier.

Estimates place the total number of direct and indirect jobs generated by an approximate $6 billion investment in NextGen equipment at more than 150,000 through 2012, with 30,000 jobs generated the first year.

“Government incentives for NextGen will allow the system to come online up to six years ahead of schedule,” continued Blakey. “Americans will start to enjoy travel again as the system becomes more efficient, and huge fuel savings will make us better stewards of the environment.”  In her remarks, Blakey also commended the new defense team for recognizing the importance of a DoD-industry partnership and for its commitment to minimize the adverse impacts of policy choices on the industrial base.
Expressing concern about the future of U.S. preeminence in space, she said that unless we increase NASA’s budget, we will be relying on the Russians for a ride to the International Space Station.

“That is not an exaggeration,” said Blakey, adding, “AIA is working on a proposal for a new strategy to shore up support for NASA and our long-term leadership in space.”
AIA launched the first-ever National Aerospace Day this year and is planning a week-long event in September 2010 that will broaden and amplify the message that aerospace directly benefits our economy, national security and workforce.

“Aerospace is very much about reaching for the stars,” said Blakey. “The innovation of aerospace pioneers runs like a strand of DNA down through history to our present-day pathfinders. I’m confident that our long-term outlook is bright.”

Who to Contact
Media Contact:
Alexis Allen
(703)358-1075
alexis.allen[at]aia-aerospace.org

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At Agente Technical our company vision is simple…to bring together our technical talent and your technology needs, through focused, committed and insightful staffing solutions.

As a small business, we understand the need to make the most of every resource by only hiring the best. Our team is a perfect example of how the right people, can make the difference. Together, we have more than 20 years combined experience in the technical staffing industry, and we are committed to quality, consistency and unrivaled customer service. Our dedicated, experienced and successful staffing specialists give us the ability to make your business needs successful.

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