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U.S Base Operational Support Services Market Challenged But Year 2020 Brings Recovery Says Frost & Sullivan - Changes to base structure, organic support functions, and spending alter market fortunes, offering opportunities for key players and beyond - Defense.Frost.com
U.S Base Operational Support Services Market Challenged But Year 2020 Brings Recovery Says Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2014/10/09 - Changes to base structure, organic support functions, and spending alter market fortunes, offering opportunities for key players and beyond - Defense.Frost.com.

   
 
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Short-term growth prospects in the United States base operational support services (BOSS) market are bleak, with funding having absorbed the impact of increased spending on other areas, especially during sequestration. However, BOSS providers should stay tuned as analysis proves a hopeful future.

Uncertainty surrounding continued presence of U.S. troops in conflict zones provides particular negative impact to the BOSS market. Cost concerns are secondary to the immediacy of the need for BOSS in these areas unlike U.S. bases, where cost is the overriding concern. With some personnel returned from conflict zones, there has been a reduction in overall spending on BOSS in the continental U.S. (CONUS) and a consequent loss of market momentum.

New analysis from Frost & Sullivan’s US Base Operational Support Services projects market revenues to fall from $27.09 billion in 2013 to $22.29 billion in 2018. The analysis covers organic support as well as technical, multiple, logistics, and support services.

“The divestment of many organic support functions by the U.S. military will contribute to the residual demand for BOSS,” said Frost & Sullivan Aerospace & Defense Director Wayne Plucker. “Traditionally, uniformed personnel such as soldiers and sailors would provide BOS. However, in more recent years, support has been extended by civilian employees and today, these services are generally offered by either civilian employees or service contractors due to continued troop redeployments and drawdowns.”

Besides opening up the market to external service providers, these new dynamics allow the military to focus on deploying warfighters rather than a huge service element and avoid military end-strength issues when obtaining Congressional approval.

To take advantage of the improvement in market conditions, leading BOSS providers are offering a wide range of services across geographies while other players are concentrating on specific market segments and locations. Exemplifying the latter strategy is the significant number of contracts that are essentially programmed set-asides for small businesses, veteran- or woman-owned businesses, disadvantaged groups and non-profit organizations in CONUS. The multiple contracts with companies representing the native population outside CONUS (Hawaii, Alaska and U.S. territories) also reflect the segment-specific strategy. While contracts in both CONUS and OCONUS are usually small in value, they add up to a significant amount in some locations.

“By 2020, the U.S. BOSS market will regain momentum as changes to the force and base structure as well as most readjustments to spending will have taken effect,” stated Plucker. “In preparation for this, BOSS providers should boost the reliability of their services and stay on top of technology trends.”

US Base Operational Support Services is part of the Defense (defense.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Military Unmanned Maritime Systems Market, US Department of Defense Command and Control, Communications, Computers, Intelligence, and Surveillance and Reconnaissance, US Department of Defense 2015 Budget Assessment, and Global Military Unmanned Aerial Vehicles Systems and Sensors Market Assessment. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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US Base Operational Support Services / ND59-16

 
 
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U.S Base Operational Support Services Market Challenged But Year 2020 Brings Recovery Says Frost & Sullivan

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Frost & Sullivan | U.S. BOSS Market
Contact: Jennifer Carson - Frost.com 
210-247-2450 jennifer.carson[.]frost.com
 
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