In 2022, revenues from the sale of weapons and military services by the 100 largest companies in the industry amounted to $597 billion, which is 3.5% less than in 2021. And this despite a sharp increase in demand.
This is evidenced by new data released on December 4 by the analytical company Stockholm International Peace Research. Stockholm International Peace Research (SIPRI).
The trend of rising demand for weapons while lagging production is driven by labor shortages, skyrocketing production costs and disruptions in supply chains that have worsened due to the war in Ukraine.
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- USA
Analysts note that US gun sales are falling due to manufacturing challenges.
The arms sales revenues of the 42 US companies in SIPRI's top 100 fell 7.9% to $302 billion in 2022.
“We are starting to see an influx of new orders related to the war in Ukraine, and as a result, some large US companies, including Lockheed Martin and Raytheon Technologies, have received new orders. However, due to delays in fulfilling existing orders from these companies and difficulties in ramping up production capacity, revenue from new orders will likely take two to three years to be reflected, says Nan Tian, a senior researcher at SIPRI.
- Asian countries
The arms revenues of the 22 companies from Asia and Oceania listed in the ranking grew by 3.1% to $134 billion in 2022.
— Domestic demand and dependence on local suppliers have protected Asian arms manufacturers from supply chain disruptions in 2022. Companies in China, India, Japan and Taiwan have benefited from continued government investment in military modernization, says SIPRI Military Expenditure and Weapons Program researcher Xiao Liang.
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- Europe
Weapons revenues for the 26 European companies in SIPRI's top 100 rose 0.9% to $121 billion in 2022.
— The war in Ukraine has created a demand for equipment suitable for a war of attrition, such as ammunition and armored vehicles. The income of many European manufacturers of these weapons has increased. We are talking about companies in Germany, Norway and Poland. For example, Poland's PGZ increased its arms sales revenue by 14%, taking advantage of the country's accelerated military modernization program, says SIPRI Military Expenditure and Arms Production Program researcher Lorenzo Scarazzato.
- Ukraine
The only Ukrainian company in the SIPRI top 100, Ukroboronprom, recorded a 10% drop in income from arms sales to $1.3 billion. Although sales of military equipment increased in nominal terms, this was depreciated by high inflation in the country.
- Russia
Due to a lack of data, only two Russian companies made it into the SIPRI top 100 for 2022. Their revenues from general arms fell by 12% to $20.8 billion. Transparency among Russian companies continues to decline.
