Analysts’ views are clouded by the hazy future of FCS

Dec 01, 2008 | 07:51 AM |

Analysts don't anticipate major ramifications for the steel market if the U.S. Army shifts billions of funding dollars out of heavy military ground vehicle programs, although a lot of things aren't yet known about how such an initiative could unfold.

There is still a lot of negotiating taking place at the government level and it is far from decided how money will be divvied up between existing and Future Combat Systems (FCS) ground vehicles in coming years, according to Dean Lockwood, weapons systems analyst at Newtown, Conn.-based research firm Forecast International Inc.

"What you end up with, regardless of which way the budget goes, is that raw material requirements are basically going to be a wash," Lockwood said. "Whether it is going to FCS or existing programs, you are probably going to end up with the same dollar amount going either way and buying the same amount of raw material."....