The world’s arms-producing companies benefit from the wars in Ukraine and Gaza, and also benefit from other countries increasing their military spending.
Fueled by the wars in Gaza and Ukraine, the revenues of the 100 largest arms manufacturers grew to a record $679 billion last year.
The 5.9 percent increase in revenues from the sale of arms and military services in 2024 was also due to countries increasing their military spending.
According to the Stockholm International Peace Research Institute (SIPRI) report, released on Monday, the $1 trillion turnover was the highest figure ever.
Most of the increase came from companies in Europe and the United States, but there were increases around the world – except in Asia and Oceania, where problems in China’s arms industry led to a slight decline.
Thirty of the 39 U.S. companies in the top 100 – including Lockheed Martin, Northrop Grumman and General Dynamics – posted increases.
Their combined sales rose 3.8 percent to US$334 billion ($512 billion).
But SIPRI noted that “widespread delays and budget overruns continue to plague the development and production” of major US-led programs, including the F-35 fighter jet.
Twenty-three of Europe’s 26 companies, excluding Russia, saw their arms revenues rise as the continent boosted spending.
Their total income rose 13 percent to US$151 billion ($232 billion), fueled by demand related to the war in Ukraine and the perceived threat from Russia.
There were particularly big gains for the Czech Czechoslovak Group, whose revenues rose 193 percent, partly thanks to a government-led project to source artillery shells for Ukraine, and for Ukraine’s JSC Ukrainian Defense Industry, which posted a 41 percent gain.
Arms revenues also grew in the Middle East, with the three Israeli companies in the rankings seeing a 16 percent increase to US$16.2 billion ($24.9 billion).
In 2024, the response to Israeli actions in Gaza appears to have had “little impact on interest in Israeli weapons,” said SIPRI researcher Zubaida Karim, and many countries continued to place new orders.
— Associated Press reporting via the Australian Associated Press.
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