The C-17, once a near-dead program that exemplified cost overruns and bad contracting, turned into a remarkable success story. Not only did costs come down to a level that represents good value even by civil aviation standards, it actually scored the first export sales of any Western strategic transport.
As of September, Boeing had delivered 257 C-17s (223 to the USAF, 34 to international customers. Of the 22 remaining C-17s, seven will go to India (which has already taken three) and two are for an unnamed customer, probably Kuwait.
Teal Group's overall, cumulative forecasts indicate the military electronics market available to U.S. manufacturers will continue to rise slowly, while platform hardware procurements will decline. The shrinkage of new-platform hardware procurements began as long ago as the 1990s (remember the Cold War? The Peace Dividend? Backfire bombers, SS-20 MIRVs and Nuclear Winter?), and have declined again recently after a hardware procurement surge for Iraq and Afghanistan war buys and then after-action refits (ground systems, especially, such as armored vehicles, MRAPS, base security, etc.)..
The MLRS program is widely viewed as one of the sterling successes of Army acquisition in the 1980s, having resulted in a highly respected and novel weapon system in minimal time with minimal difficulty. The MLRS performed extremely well in Operation Desert Storm, and forced the Marine Corps to acquire it in spite of shrinking budgets. The Army is now procuring the GMLRS guided rocket and may reopen a smart rocket program. However, the year 2006 saw a substantial cutback in Army plans to acquire the GMLRS, with the total objective substantially cut, and out-year acquisition falling from an anticipated level of about 7,000 annually to only about 2,000-3,000 annually. Likewise, the planned acquisition of the HIMARS truck launcher was cut.
Strategy: Embraer is continuing to broaden its portfolio, with the successful launch of the E2 family second generation of the E-jets being the latest step. Embraer is also introducing new business jets in the very light and light categories. It is also seeking to grow in homeland security and defense.
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