Stockholm —
Sales by major arms suppliers were boosted last year by the wars in Ukraine and Gaza and tensions in Asia, with marked increases for manufacturers based in Russia and the Middle East, according to a report published Monday.
Sales of arms and military services by the world's 100 largest arms companies totaled $632 billion last year, up 4.2%, the Stockholm International Peace Research Institute (SIPRI) said.
They had declined in 2022 due to the inability of these global giants to meet the increase in demand, but many of them managed to restart their production in 2023, according to the report.
As a sign of this strong surge in demand, these 100 companies, for the first time, all individually achieved a turnover of more than a billion dollars last year.
Sales of the world's top 100 groups "do not yet fully reflect the scale of demand and many companies have launched recruitment campaigns, showing their optimism for the future, . ."
Smaller producers have been more efficient in meeting this new demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programs in other regions, SIPRI points out.
"Many of them specialize in one component or build systems that require a single supply chain," allowing them to react more quickly, Nan Tian, director of the military spending program, told AFP.
As the world's leading producers, American groups recorded a 2.5% increase in their sales in 2023 and still represent half of global arms revenues, with 41 American companies among the top 100 in the world.
- Lockheed Martin and RTX (formerly Raytheon Technologies), the two largest arms groups in the world, recorded a drop in their sales.
- They often rely on complex, multi-tiered supply chains, making them vulnerable to the supply chain challenges that have persisted into 2023,” Nan Tian says.
Europe, with 27 groups, only posted a 0.2% increase in sales last year, which masks a dual reality.
- European groups manufacturing complex weapons systems were still working on old contracts last year, which does not reflect the influx of orders recorded since then.
The figures for Russia, although incomplete, show the effects of an economy largely geared toward war.
- Sales of the two Russian groups in the ranking showed a 40% increase, mainly due to the 49% increase in sales of the state conglomerate Rostec, according to SIPRI.
Manufacturers in the Middle East were buoyed by the war in Ukraine and the first months of the Israeli offensive on Gaza in October 2023.
The three Israeli manufacturers in the ranking posted record sales of $13.6 billion, while the three groups based in Turkey, such as drone producer Baykar, saw their sales jump by 24%, supported by the war in Ukraine and Turkey's desire to develop its defense.
The general rearmament in Asia is particularly evident in the sales increases of the four South Korean manufacturers and the five Japanese weapons’ makers, with the nine Chinese producers marking time against a backdrop of a "slow economy.”
US companies recorded a 2.5% increase in their sales in 2023 and still accounted for half of the world’s arms revenues
Dec 02, 2024, 01:50 PM
PHOTO: REUTERS
STOCKHOLM - Sales by major arms makers were boosted in 2023 by wars in Ukraine and Gaza and tensions in Asia, with marked increases for manufacturers based in Russia and the Middle East, a report said on Dec 2.
Sales of arms and military services by the world’s 100 largest arms companies totalled US$632 billion (S$850 billion) in 2023, up 4.2 per cent, according to a report by the Stockholm International Peace Research Institute (Sipri).
Revenues dipped in 2022 as global weapons makers struggled to meet the increase in demand, but many of them managed to increase production in 2023, the report noted.
In a sign of this surge in demand, all 100 companies tracked achieved sales in excess of US$1 billion in 2023 for the first time.
“There was a marked rise in arms revenues in 2023, and this is likely to continue in 2024,” Mr Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production, said in a statement.
Sales from the world’s top 100 arms companies “still did not fully reflect the scale of demand, and many companies have launched recruitment drives, suggesting they are optimistic about future sales”, Mr Scarazzato added.
Smaller producers have been more effective in meeting the demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programmes in other regions, the institute said.
“A lot of them specialise in either a component of something or build systems that require one set of supply chains,” allowing them to react more quickly, Dr Nan Tian, Director of Sipri’s Military Expenditure and Arms Production Programme, told AFP.
Among the leading producers, US companies recorded a 2.5 per cent increase in their sales in 2023 and still accounted for half of the world’s arms revenues, with 41 US weapons producers in the world’s top 100.
Lockheed Martin and RTX (formerly Raytheon Technologies), the world’s two largest arms makers, on the other hand, reported a fall in revenue of 1.6 per cent and 1.3 per cent respectively.
Such behemoths “often depend on complex, multi-tiered supply chains, which made them vulnerable to lingering supply chain challenges in 2023”, Dr Tian said
STOCKHOLM - Sales by major arms makers were boosted in 2023 by wars in Ukraine and Gaza and tensions in Asia, with marked increases for manufacturers based in Russia and the Middle East, a report said on Dec 2.
Sales of arms and military services by the world’s 100 largest arms companies totalled US$632 billion (S$850 billion) in 2023, up 4.2 per cent, according to a report by the Stockholm International Peace Research Institute (Sipri).
Revenues dipped in 2022 as global weapons makers struggled to meet the increase in demand, but many of them managed to increase production in 2023, the report noted.
In a sign of this surge in demand, all 100 companies tracked achieved sales in excess of US$1 billion in 2023 for the first time.
“There was a marked rise in arms revenues in 2023, and this is likely to continue in 2024,” Mr Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production, said in a statement.
Sales from the world’s top 100 arms companies “still did not fully reflect the scale of demand, and many companies have launched recruitment drives, suggesting they are optimistic about future sales”, Mr Scarazzato added.
Smaller producers have been more effective in meeting the demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programmes in other regions, the institute said.
“A lot of them specialise in either a component of something or build systems that require one set of supply chains,” allowing them to react more quickly, Dr Nan Tian, Director of Sipri’s Military Expenditure and Arms Production Programme, told AFP.
Among the leading producers, US companies recorded a 2.5 per cent increase in their sales in 2023 and still accounted for half of the world’s arms revenues, with 41 US weapons producers in the world’s top 100.
Lockheed Martin and RTX (formerly Raytheon Technologies), the world’s two largest arms makers, on the other hand, reported a fall in revenue of 1.6 per cent and 1.3 per cent respectively.
Such behemoths “often depend on complex, multi-tiered supply chains, which made them vulnerable to lingering supply chain challenges in 2023”, Dr Tian said
Russia’s Rostec surges
In Europe, home to 27 of the top 100 arms makers on average saw an increase of just 0.2 per cent.
The figures for Russia, though incomplete, give a clear signal of an economy increasingly geared toward war.
Sales by the two Russian groups in the ranking rose by 40%, mainly thanks to a 49% increase in sales for state-owned conglomerate Rostec, according to the report.
Manufacturers in the Middle East were buoyed by the war in Ukraine and by the first months of the Israeli offensive in Gaza after Hamas’s Oct 7, 2023, attack – and saw on average an 18% lift in sales.
- But European groups manufacturing complex weapons systems were still in the process of honouring old contracts in 2023, so the revenues do not reflect the influx of orders since then.
The figures for Russia, though incomplete, give a clear signal of an economy increasingly geared toward war.
Sales by the two Russian groups in the ranking rose by 40%, mainly thanks to a 49% increase in sales for state-owned conglomerate Rostec, according to the report.
Manufacturers in the Middle East were buoyed by the war in Ukraine and by the first months of the Israeli offensive in Gaza after Hamas’s Oct 7, 2023, attack – and saw on average an 18% lift in sales.
- The three Israeli manufacturers in the ranking posted record sales of US$13.6 billion, up 15% from the year before, while
- The three groups based in Turkey, such as drone producer Baykar, saw their sales jump by 24% – boosted by Ukraine and Turkey’s investments in its defense.
- The nine Chinese producers, meanwhile, saw revenue increase by only 0.7% “amid a slowing economy”, but their sales still totaled US$103 billion. AFP
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World's top 100 defense groups boost arms sales by 4% in 2023, think tank SIPRI says
STOCKHOLM, Dec 2 (Reuters) - The world's 100 biggest defense equipment makers increased their arms sales by 4.2% in 2023 to $632 billion, fueled by wars and regional tensions, a leading think-tank said on Monday.
The Stockholm International Peace Research Institute (SIPRI) said in a report U.S. groups on the list grew sales by 2.5% in total compared to the year before to $317 billion. Market leaders Lockheed Martin (LMT.N), opens new tab and RTX (RTX.N), opens new tabhowever saw slightly lower arms sales.
The rise followed a 3.5% dip in arms sales in 2022, which SIPRI has blamed on labor shortages, supply-chain disruptions and rising costs, which made it hard for many companies to meet increased demand driven by Russia's invasion of Ukraine.
- European companies on the list - excluding Russian - had roughly unchanged combined sales in 2023 at $133 billion, but order intake surged, and some groups saw a surge in demand linked to the war in Ukraine.
Earlier this year, SIPRI reported a 7% increase in global military spending in 2023, the steepest annual increase since 2009.
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