Mary-Louise Hoffman
Frost & Sullivan predicts that worldwide revenues of the military systems support-in-service industry will grow from $16.36 billion in 2013 to $21.10 billion by 2022.
The market research and analysis firm said Wednesday that defense budget constraints worldwide is driving use of performance-based contracts for support work for maritime, ground and aerial military platforms.
Arun Kumar Sampathkumar, a Frost & Sullivan aerospace and defence research analyst, said the U.S. Defense Department spent more than $80 million in performance-based maintenance contracts last year.
“The advent of data-driven, IT-infrastructure-guided maintenance programs that continuously monitor military platforms has added momentum to the implementation of performance-based logistic processes,” Sampathkumar added.
Contractors should weigh factors such as platform fleet size, maintenance infrastructure and supply chain mechanics when pursuing in-service support contracts, according to Frost & Sullivan.
Sampathkumar recommended that international service providers find local partners to reduce expenses on maintenance facilities.
“Partnering with local suppliers is also welcomed by governments that are otherwise conservative in choosing international service providers for military support,” he stated.
