2004 World Armor Market

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2004 World Armor Market

• A Worldwide Review of History, Trends and Issues
  affecting manufacturers, suppliers and customers

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2001 World Armor Market Survey

• For the first time, a comprehensive, first-hand
  look at the industry
• Every factory had been personally visited
• The Production numbers were verified- not taken
  as given
• Myths were replaced by physics, logic and
  ballistics for end-users to obtain value rather
  than a pitch'

3
2001 Survey

• Major players and their strengths were identified
  and listed
• Minor players and their markets were reviewed
• Suppliers were categorized by type and volumes
• Major trends by armor level and geography were
  detailed

4
2001 Survey

• Forecasts were made by armor level and volume
• Industry fragmentation and consolidation trends
  were examined
• End users were given guide how to buy and build
  an armored vehicle and get what you paid for
  from the bid to the inspection process.

5
2001 Survey

• This was a first of its kind effort and to our
  knowledge, has never had a competitor because it
  required 1000s of man hours of travel, industry
  expertise and access.
• The industry was mature and change was slow
  growth was steady but not dramatic.
• Then 9/11/01

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Transitioning

• 9/11 confused everyone in the industry
• Many who were considering armored vehicles now
  focused on their physical plant security
• Some OEMs stalled any major armor investment-
  others hedged
• Trends were interrupted and continuity was not
  important

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Transitioning

• Now Afghanistan and Osama bin Laden are in our
  board and living rooms
• Major military push for armor- both personal and
  vehicular systems
• Security directors of high profile firms now
  faced an unprecedented major threat- Middle
  Eastern terrorism in the US

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Transitioning

• Then Iraq and all the aftermath coupled with
  Hammas, the Chechnyan revolution and other
  worldwide anti-American threats and backlash
• What happened to the armor market?
• Introducing the Market Update for 2004
• Winners, losers, pretenders and outlook

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FWCG 2004 SurveyTable of Contents

• 1)Market Overview
• 2) Technology Issues
• 3) Supplier Issues
• 4) The Key Armorers
• 5) Market Segment Analysis

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2004 Update

• Never before seen demand
• Suppliers and manufacturers unable to fill demand
• MANY new players without expertise
• Confusion by end-users accentuated
• Some OEMs jumped in, some opted out and some
  were left behind

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2004 Update

• Change in demand volume priority to B6 level
• Overwhelmed technology laggards
• Changed supply lines
• Clogged output of finished product labor hours
  required increased 2.5X at minimum
• Limited vehicle choices

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2004 Update

• Private and public threat analysis had to be
  revamped entirely
• High-rifle and I.E.D.s required all new plans
  and materials
• Military demand preempted the private sector and
  the substitutions some armorers made to address
  demand are dangerous

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2004 Update

• Certification is critical for all levels but is
  crucial for high rifle B6 and above
• The gap in end-user knowledge is closing but we
  still see unacceptable practices
• Whats the future- we put on our robes and break
  out the crystal ball

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• Contact Far West Consulting Group Inc for more
  information
• EST- 954-428-8228
• PST 619-420-2990
• Email doug_at_autosafety.com