A report issued by the Stockholm International Peace Research Institute (SIPRI), on Tuesday, showed that the total revenues from arms sales and military services for the 100 largest companies reached $597 billion in 2022. This was stated in an annual report issued by the institute specialized in industries. Military.
The report indicated that the sales figure during 2022 was 3.5% lower than in 2021.
This decline was mainly the result of a decline in arms revenues among major companies in the United States; Revenues increased significantly in Asia, Oceania and the Middle East.
However, pending orders and an increase in new contracts indicate that global arms revenues could rise significantly in the next few years.
“The war in Ukraine and geopolitical tensions around the world led to a strong increase in demand for weapons and military equipment in 2022,” the report said.
However, “despite receiving new orders, many US and European arms companies have not been able to significantly increase their production capacity due to labor, rising costs and supply chain disruptions.”
Also, countries placed new orders late last year, and the time lag between orders and production meant that the increase in demand was not reflected in these companies’ 2022 revenues.
New contracts
Commenting on the report, Director of SIPRI’s Military Expenditure and Arms Production Program, Lucie Pirro Sodro, said, “Many arms companies have faced obstacles in adapting to production for high-intensity warfare, yet new contracts have been signed that are expected to translate To higher revenues in 2023 and beyond.”
In contrast to major suppliers in the United States and Europe, companies in Asia, Oceania and the Middle East saw significant growth in arms revenues in 2022, demonstrating their ability to respond to increased demand within a shorter time frame.
The revenues of the 42 American companies on the list of the top 100 companies decreased by 7.9% to reach $302 billion in 2022, which represents 51% of the total arms revenues on the list of the top 100 companies.
Of the 42 US companies, 32 recorded a decline in arms revenues year-on-year, mostly due to ongoing supply chain issues and labor shortages caused by the Corona pandemic.
Arms revenues for the 22 companies from Asia and Oceania included in the ranking rose by 3.1% to reach $134 billion in 2022.
Arms revenues for 26 companies among the top 100 companies based in Europe also increased by 0.9% to reach $121 billion in 2022.
