DoD Budget Cuts Stall New Purchases of Helicopters

New analysis from Frost & Sullivan, Analysis of the DoD Helicopter Market, finds that the helicopter segment will obtain $15.59 billion from the DoD’s 2013 budget with the Army forecasted to account for nearly half of this spending.

Testing unmanned rotary-winged platforms for resupply in Afghanistan, as well as for other dull, dangerous and dirty missions, will offer an estimate of the number of manned platforms needed for similar missions in the future. A greater focus on part of the U.S. Armed Forces on Asia Pacific will also enhance the need for maritime helicopters. Conventional combat operations will give way to more irregular warfare that involves no state enemy.

“DoD forces will become more involved with COIN and counterterrorism operations in tactical environments because well-funded, non-state actors will gain access to advanced technologies and capabilities,” said Frost & Sullivan Senior Industry Analyst Michael Blades. “In such a scenario, there will be a steady demand for rotary-winged aviation for the next several decades.”

The constant use of helicopters for combat and humanitarian operations is compelling the DoD to upgrade its existing fleet. There will be fewer ‘new start’ military helicopter projects due to an estimated $1 trillion spending cut over the next 10 years, as proposed by the Budget Control Act (BCA) of 2011.

The DoD must make a decision on platform replacement by the end of this decade to prevent a severe loss of U.S. combat mission capabilities.

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