August 4, 2005

 epipeline's Eye on "Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing," NAICS 334511

 

As the Business Development Manager responsible for creating the business plan for your company, it can be very challenging to gain a perspective of opportunities over the several years; and from that, determine the specific opportunities to pursue.

This week we are going to look at the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' industry, as represented under NAICS 334511. Specifically, comparisons between Fiscal Year 2004 versus Fiscal Year 2003, asking:
 

  1. Who issues the contracts?
  2. Who wins the contracts?

NAICS 334511 is used when the contract requires manufacturing search, detection, navigation, guidance, aeronautical, and nautical systems and instruments. Examples of products made for these contracts are aircraft instruments (except engine), flight recorders, navigational instruments and systems, radar systems and equipment, and sonar systems and equipment.

This NAICS was previously represented by the Standard Industrial Classification (SIC) codes, 3812. This code covered several specific topics, as listed below:

Who issues the contracts?

 

The Department of Defense and its branches is the largest buyer of services under NAICS 334511. The Navy, Air Force, and Army taking the top market shares during Fiscal Year 2004, as well as the period of FY01 through FY03.

 

The Air Force and the Navy contracts' were valued at over $4.77 Billion in FY04, which equates a combined market share of almost 75% (according to Federal Procurement Data System -- our FPDS source is epipeline's strategic partner, Eagle Eye).  During the period of FY01 through FY03, their combined contract spending was valued at over $12.68 Billion for those three years. Ranking a close third is the United States Army, with about $1.3 Billion contract spending in FY04 and over $800 Million in FY03 for NAICS 334511.

 

The pie charts below illustrate spending for the top 5 agencies under NAICS 334511 for FY04 and the period of FY01 through FY03. These top five agencies combined comprise over 97% of the market share, compared to spending of all other agencies for these periods.

 

Market Share of Top 5 Agencies Under NAICS 334511

 

      FY2004 (only)                                                           FY01 through FY03

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

Who wins the contracts?

 

The table below lists the top 25 Parent companies, including their FY04 contract dollars as well as their market share. For comparison, a column is included to show the change from the previous fiscal year. Several companies changed their rank from one year to the next or were not even ranked in FY03.

 

The top four companies shuffled around from their FY03 ranking to FY04. Raytheon, Northrop Grumman, Boeing, and Lockheed Martin's combined market share exceeded 65% of the total market share under this NAICS. The FY04 contract value for these four companies was over $4.15 Billion, which is higher than FY03's total of over $4.09 Billion.

 

Raytheon holds the largest FY04 market share, with over 22%, which translates to over $1.45 Billion in contract spending. Boeing held the top rank in FY03, with almost $1.25 Billion, compared to Raytheon's approximate contract value of $1.13 Million.

 

Market Share

FY04 Rank

Top 25 Companies  For NAICS 334511

FY03 Rank

Company

FY2004 Spending

Market Share FY04

1

2

Raytheon Co.

 $ 1,451,079,816

22.70%

2

4

Northrop Grumman Corp.

 $ 1,061,231,960

16.60%

3

1

Boeing Company, The

 $    961,077,581

15.04%

4

3

Lockheed Martin Corp

 $    685,792,561

10.73%

5

6

ITT Industries

 $    369,279,012

5.78%

6

7

BAE Systems Spectral Solutions

 $    295,474,091

4.62%

7

8

Rockwell Automation

 $    157,410,315

2.46%

8

10

Thales-Raytheon Systems Company

 $    114,688,620

1.79%

9

9

Honeywell, Inc.

 $      82,295,653

1.29%

10

11

EDO Corp.

 $      65,053,724

1.02%

11

5

D Systems

 $      63,570,355

0.99%

12

28

Smiths Group PLC

 $      58,598,334

0.92%

13

**

CEI Inc

 $      51,209,235

0.80%

14

**

DRS Technologies, Inc

 $      41,849,894

0.65%

15

12

Mobile Datacom Corporation

 $      39,691,216

0.62%

16

**

TCOM LP

 $      37,995,500

0.59%

17

29

Motorola, Inc.

 $      32,053,194

0.50%

18

34

Undersea Sensor Systems Inc.

 $      31,491,580

0.49%

19

13

Goodrich Corporation

 $      30,659,203

0.48%

20

25

Alliant Techsystems, Inc.

 $      27,620,318

0.43%

21

17

Science Applications Intl Corp

 $      23,861,891

0.37%

22

30

Teledyne Technologies, Inc.

 $      22,815,519

0.36%

23

18

Digital System Resources Inc

 $      22,322,274

0.35%

24

19

Sparton Corporation

 $      21,033,022

0.33%

25

21

Astronautics Corp. Of America

 $      20,529,874

0.32%

 

Source: FPDS information from epipeline's strategic partner, Eagle Eye.

 

**These firms' rank in FY03 was either over 100 or not listed.

 

epipeline's application contains a significant number of opportunities which are identified by this NAICS code. To learn more about the NAICS 334511 opportunities or other opportunities that epipeline is tracking today; try the following search in the epipeline application:

 

Find "NAICS 334511, Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing" Opportunities

 

1. Status - Select Pre-RFP;

2. NAICS Code(s) - Type 334511 (or, try using the SIC field, with 3812);

3. Click the Search Button (or hit the enter key on your keyboard).

 

 

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