Body Armor Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
Los Angeles, CA (PRWEB) July 29, 2013 -- The Body Armor Manufacturing industry produces personal protective equipment, such as hard and soft body armor, shields and headwear. The industry is highly reliant on demand from the US military, which receives its funding from the federal government. Over the past five years, industry revenue has deteriorated after achieving unprecedented levels in 2007. The industry experienced a surge in demand due to the deployment of US troops in Afghanistan and Iraq in 2001 and 2003, respectively. "This enormous deployment of US military personnel created a spike in demand for body armor for combatants entering hostile environments," says IBISWorld industry analyst Jeremy Edwards. "However, after mass purchases by the US federal government, industry revenue plummeted as manufacturing contracts tapered off." As a result, industry revenue is expected to decline at an average annual rate of 9.5% over the five years to 2013.
Conditions are expected to remain difficult for the Body Armor Manufacturing industry in 2013. "The continued withdrawal of troops in Afghanistan and Iraq is weakening demand for body armor," adds Edwards. "Furthermore, federal funding for defense and government consumption and investment are expected to decline over the year." Consequently, the industry is expected to contract 8.2% to $801.9 million in 2013.
The industry has a medium level of market share concentration. Some segments within the industry are relatively concentrated. For example, major player Point Blank Enterprises reports that it supplies the US military with about 80.0% of its soft body armor. The industry has limited retail sales, meaning that companies must win large contracts to supply private companies or public agencies over a number of years to be successful. This characteristic dictates the industry's market share concentration to a degree, as it restricts the distribution channels that small companies can sell through. Nevertheless, there are a number of small players within the industry that specialize in manufacturing niche products, often alongside a range of non-armor related products.
Body armor manufacturers are forecast to continue experiencing difficult conditions over the next five years. Federal funding for defense is expected to decline and the absence of major military operations will suppress demand for body armor. This factor is expected to be exacerbated by the budget sequestration of 2013, reducing government expenditure and defense funding. Industry revenue is expected to begin recovering midway through the five-year period as federal funding for defense increases in conjunction with higher demand from law enforcement agencies seeking to better equip police officers. Technological developments will also assist industry growth; manufacturers are expected to develop more tailored body armor, particularly for women and shorter individuals. For more information, visit IBISWorld’s Body Armor Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures a variety of body armor (personal armor) for use in law enforcement and military operations. Products include tactical body armor, concealable armor, plates, shields, helmets and padding.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310 866 5042, [email protected]
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