Helicopter Buyers Will Focus More on Cost, Says Analyst

 - February 11, 2012, 4:45 PM

Analyst Brian Foley predicts new and used helicopter sales will continue their upward trend. But he also said the purchase justification process will require more detailed research as various market segments exercise increasing cost scrutiny.

Foley predicts that this will lengthen the traditional sales cycle, forcing smart sellers and buyers to “plan further ahead.” Foley sees an increased focus on value including the ability to demonstrate decreased costs, increased revenue and additional utility. Maintaining future sales growth will hinge on “the manufacturers’ ability to help customers with all the necessary information and justification needed to make their numbers work,” Foley said.

Foley sees numerous factors driving this increased cost scrutiny including tighter local, state and federal budgets, sharper focus on bottom lines by the private sector and the specter of a massive $600 billion reduction in U.S. military spending over the next decade. “Value will remain the future quest and mantra guiding helicopter purchases,” Foley concluded.