The world cannot satisfy the demand for weapons: what problems have manufacturers encountered?

The demand for weapons continues to grow / Collage 24 Channel (illustrative photo)

Due to the full-scale war in Ukraine and other international conflicts, the demand for weapons is growing. Global manufacturers are experiencing some tension.

The war in Ukraine has created demand for weapons for many global manufacturers. However, manufacturing revenues are falling.

Why the US and Europe cannot cope with the armed challenge

Many US and European companies have been unable to increase production capacity due to labor shortages, rising costs and weapons in supply chains.

Many weapons companies have faced obstacles in adapting to production for high-intensity warfare, said Lucie Béraud-Sudreau, director of SIPRI's Military Expenditure and Weapons Production Programme.

In particular, income from arms sales is falling in the United States. Thus, in 2022, the income of 42 American companies decreased by 7.9 percent. They, in turn, accounted for 51 percent of total income from gun sales. The reason for this decline is also due to the challenges associated with the COVID-19 pandemic.

What is the situation in Asian countries

Unlike Europe and the United States, Asia has certain advantages in the military sphere. Thus, revenues from weapons of 22 companies in Asia and Oceania grew by 3.1 percent in 2022. Last year was identified as the second year that the top 100 arms revenues in Asia and Oceania exceeded those in Europe.

“Domestic demand and dependence on local suppliers have insulated Asian arms companies from supply chain disruptions in 2022,” said Xiao Liang, a researcher at the SIPRI Military Expenditure and Weapons Programme.

Help for Ukraine continues

• The Biden administration has sent a request to Congress to allocate money for military and financial assistance to Ukraine.
• The White House emphasized that the allocated funds may run out before the end of the year. And if this happens, it will “bring Kyiv to its knees on the battlefield.”
• In addition, the Ministry of Defense of Ukraine announced the creation of a new modification of the missile for the Neptune complex. But the details have not yet been revealed.