On December 4, the Stockholm International Peace Research Institute (SIPRI) said that the arms sales revenue of the top 12 largest arms manufacturing and military service companies in the world last year only reached 100 billion USD, down 597% compared to 3,5.
Ukrainian soldiers fire NLAW anti-tank weapons in the Donetsk region, Ukraine. Photo: AP
“Many arms companies face obstacles in increasing production for a period of high-intensity war,” explains Ms. Lucie Béraud-Sudreau, director of SIPRI's Arms Production and Military Expenditure Program.
According to SIPRI data, the 2022 revenue of the 42 US companies on the list (accounting for 51% of total arms sales) decreased by 7,9% to $302 billion. Of these, 32 companies recorded a decrease in arms revenue compared to the same period last year, mostly due to supply chain problems and labor shortages after the COVID-19 pandemic.
“We are starting to see a wave of new orders related to the conflict in Ukraine,” said Nan Tian, senior researcher at SIPRI.
Accordingly, several large US companies, including Lockheed Martin and Raytheon Technologies, have received a sharp increase in orders. However, due to the backlog of orders and difficulties in ramping up production, revenue from these orders will only show up in the company's financial statements in the next 2 to 3 years.
Meanwhile, arms revenues of companies in Asia and the Middle East increased significantly in 2022. This demonstrates "the ability to meet strong increases in demand in a short period of time".
Despite a year-on-year decline, total arms revenue of the Top 100 in 2022 is still 14% higher than in 2015 - the first year SIPRI included Chinese companies in the rankings.
“However, new contracts have been signed, especially for ammunition, which are expected to result in higher revenues in 2023 and beyond,” Ms. Béraud-Sudreau said.
Hoai Phuong (according to AP)
