In the age of counterinsurgency, counterterrorism, and small wars, the rotary-wing is king. More than ever before in the history of the US military, rotary-wing assets are taking a central role in combat operations. In modern battlespaces, helicopters play a diverse set of roles including transporting VIPs, escorting troops, and evacuating casualties. This makes them fundamental to Department of Defense (DoD) battleplans in the coming decade. Motivated by this trend, the business and consulting firm Frost & Sullivan just released a new report of the procurement side of the DoD’s future rotary wing planning. The report, titled “Analysis of the DoD Helicopter Market,” examines DoD spending on rotary wing assets in 2013 and beyond, reveals at least one impact of the DoD’s budget woes.
According to the report, the helicopter segment of the Defense Department’s 2013 budget will be $15.59 billion. More interestingly, the report claims that the U.S. Army will comprise half of all DoD spending on rotary wing assets in that period. This makes sense, more than any other service; it is the Army that benefits from the increased availability of rotary wing assets — e.g. medical evacuations, air support, and troop transportation.
However, the most interesting conclusion of the report is this: the Budget Control Act (BCA) of 2011 will have a real and significant impact on the nature of the DoD rotary-wing collection of assets. The report claims that the high demand for rotary-wing assets over the last decade has made it imperative that the DoD upgrades its existing fleet. According to Frost & Sullivan Senior Industry Analyst Michael Blades, the budget cuts “will necessitate continuous remanufacturing and upgrading of current rotary-winged aircraft rather than purchasing new, technologically advanced platforms.” In other words, the DoD will spend its money keeping its current fleet flying, rather then investing in the next generation of rotary-wing technologies. In response, according to Frost & Sullivan, the helicopter industry should focus more on developing affordable upgrade technologies rather than new airframes.
What does this mean for cleared job seekers? Expect better job markets in industries with experience developing rotary-wing sub-systems, even if the companies are not one of the large helicopter manufacturers. In the current rotary-wing market, it will be those companies that see the largest percent of business, and therefore available positions.
Mike Jones is a researcher, writer, and analyst on national and international security. He lives in the DC area.
