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L3Harris Technologies (LHX) Wins $28M Contract for HMPT

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L3Harris Technologies, Inc. (LHX - Free Report) recently secured a modification contract for hydro-mechanically propelled transmissions (HMPT) and its related hardware. The deal has been awarded by the U.S. Army Contracting Command, Detroit Arsenal, MI.
 
Valued at $28.1 million, the contract is expected toconclude by Oct 7, 2022. Work related to the deal will be carried out in Muskegon, MN.

Role of HMPT in Combat Vehicles & LHX

The United States and other countries have been strengthening their defense system worldwide due to geo-political tensions and intensified terrorist attacks. In this context, a robust HMPT plays a crucial role for effective working of combat vehicles of the army. The effective HMPT provides ample benefits to the military including allthe power needed for the vehicle and providing support for any transmission clutched faced by the army.
 
In this context, it is imperative to mention that L3Harris Technologyis a pioneer when it comes totechnological innovation. Itis capable of responding to challenges with agile technology across all domains of defense. In the land domain, apart from providing an enhanced night vision goggle technology to robots, the company supplies a proven HMPT to the U.S army, which is amplified with power suitable for combat vehicles.
 
Bradley family of vehicles of the U.S Army, manufactured by BAE Systems (BAESY - Free Report) , is equipped with HMPT 800 procured from L3Harris Technologies.

Budget Supporting Growth Prospects

Combat Vehicles and related investments play a very significant role in the U.S Army. Quite obviously,the U.S fiscal 2022 budget plan included $12.3 billion for ground combat systems. This would spur demand for combat vehicles and thus, an effective HMPT that can power them. Without a doubt, this implies strong inflow of orders for L3Harris going forward, considering its expertise in technologically proven HMPT.

Combat Vehicles Growth Outlook

As the threats across the globe rise, emerging economies have increased their defense budget spending. Consequently, the combat vehicle arena is poised to grow and open up favorable avenues for the combat vehicle makers. Per a report by the Markets and Markets research firm, the global armored vehicles market is projected to grow at 5.8% from $11.6 billion over the period of 2020 to 2025.
 
This should bode well for prominent combat vehicles makers like Textron (TXT - Free Report) and General Dynamic (GD - Free Report) .
 
Textron’s product portfolio includes the Commando family of armored vehicles along with M5 RIPSAW. General Dynamic’s family of military vehicles include The Abrams main battle tank, the family of Stryker and LAV wheeled combat vehicles and the AJAX armoured fighting vehicles.