Top 5 Markets for U.S. Defense, Emergency & Security Vehicles

Top 5 Markets for U.S. Defense, Emergency & Security Vehiclesdefense vehicles

While U.S. trade in defense, emergency and security vehicles has seen a slowdown in recent years due to the end or drawdowns of overseas conflicts, the fact remains that these products enjoy substantial demand overseas, even in peace time.  Friendly nations continue to be buyers of U.S. defense and security vehicles in support of their domestic defense and law enforcement activities.  Additionally, emergency vehicles, such as ambulances manufactured in the United States, continue to enjoy strong demand overseas due to their capabilities and durability.  Lastly, despite drawdowns and withdrawals from conflicts in the past few years, the United States maintains a significant overseas defense presence that requires ongoing servicing and replenishment in the form of new vehicles and parts thereof.  The data on this market, sourced from the U.S. Census Bureau, requires some careful consideration as certain manufacturers may fall into categories that refer to their general defense business which often include categories aside from vehicles.  Meanwhile, a great number of exporters in this segment simply fall under the same classification of conventional heavy vehicles such as trucks.  At Crescent Air Freight, our expertise in the logistics of vehicles and parts thereof for defense, emergency and security vehicles gives us a unique perspective into the handling of these products as well as keen insight into the export markets and trade data that are truly relevant to this sector.  Based on NAICS code 336992, here’s a look at the top five markets for U.S. exporters of defense, emergency and security vehicles:

5. Australia – 2014 U.S. Defense, Emergency & Security Vehicle Exports – US $49MM

Signed in 2007, the Australia-US Defense Trade Cooperation Treaty has opened the door to expanded cooperation between the United States and Australia in the trade of defense and security related goods.  The treaty came into effect in May 2013, and a subsequent increase in shipments of U.S. made military vehicles has ensued.  U.S. exporters of such goods and related components will find easier trade and export control compliance procedures in dealing with Australia, which incidentally has also been a hot market for U.S. exports over the past decade.

4. South Korea – 2014 U.S. Defense, Emergency & Security Vehicle Exports – US $63MM

The United States has maintained a significant military presence in South Korea since the Korean War.  Export data will certainly reflect a bias towards the U.S. military business in the country, however, support for Korean defenses does offer significant opportunity for U.S. manufacturers of such vehicles as well as their components, spares and accessories.

3. Afghanistan – 2014 U.S. Defense, Emergency & Security Vehicle Exports – US $66MM

While combat operations in Afghanistan officially ceased at the end of 2014, the United States continues to be involved in training, equipping and generally supporting Afghan defense and domestic security forces.  Aside from vehicles themselves, we continue to see strong activity in the export of emergency and security vehicle parts such as engines, armor, body kits and affiliated products and believe this will continue for some years to come.

2. Israel – 2014 U.S. Defense, Emergency & Security Vehicle Exports – US $106MM

Like Australia and Saudi Arabia, Israel is neither a recent nor current “war zone” country, nor a place where U.S. combat operations take place.  As a beneficiary of U.S. military aid and cooperation, however, it is a market that is extremely friendly to U.S. exporters of defense vehicles and related components.

1.Saudi Arabia – 2014 U.S. Defense, Export & Security Vehicle Exports – US $253MM

Saudi Arabia is an excellent market for U.S. vehicles and related components in the commercial and defense sectors.  At Crescent Air Freight we have seen continuous and sustained demand for U.S. manufactured components of security vehicles ranging from sirens and light bars to engines, ambulances and armored vehicles for several years.  While there are some concerns about future growth in this market as a result of declining oil prices, it is clear that Saudi government expenditure on its defense and security sector will continue to be a high priority for many years to come.

While we’ve only highlighted the top five markets for U.S. defense, emergency and security vehicles there is significant opportunity for American companies in this sector to export to high demand markets including Canada, Colombia, Egypt, Iraq and Tunisia to name but a few.

At Crescent Air Freight we have developed a range of services in support of our clients who export security vehicles and parts thereof.  We provide U.S. shippers a complete package of services including trade and finance compliance, consolidation and proper shipping procedures and even final delivery solutions.  If you have any questions regarding these overseas markets, or procedures for shipping these goods internationally, please visit our website at www.crescent1.com or contact us at cargo@crescent1.com.

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