(MENAFN- AzerNews) Revenues from sales by the world's top 100 arms producers
dropped by 3.5% to $597 billion in 2022, compared to a year
earlier, despite the sharp rise in demand, an international think
tank report showed on Monday, Azernews reports,
citing Anadolu Agency.
The decline was mainly led by falling arms revenues among major
companies in the US, the Stockholm International Peace Research
Institute (SIPRI) said in its report.
Global arms revenues are expected to surge in the next few years
due to“outstanding orders and a rise in new contracts,” the report
said.
Despite the growing demand for weapons and military equipment
which was fueled by the Russia-Ukraine war and geopolitical
tensions in 2022, companies struggled to boost their production
capacity due to labor shortages, soaring costs and supply chain
disruptions.
"Many arms companies faced obstacles in adjusting to production
for high-intensity warfare," said Lucie Beraud-Sudreau, director of
SIPRI's Military Expenditure and Arms Production Program.
Sudreau stressed that that newly signed contracts, notably for
ammunition, are expected to translate into higher revenue in 2023
and beyond.
Dominating the top 100 with a 51% share, the arms revenues of
the 42 US companies dropped by 7.9% year-on-year to $302 billion in
2022.
The figure for 22 companies from Asia and Oceania listed in the
ranking grew 3.1% to $134 billion in 2022.
"Domestic demand and reliance on local suppliers shielded Asian
arms companies from supply chain disruptions in 2022," said Xiao
Liang, a researcher with the SIPRI Military Expenditure and Arms
Production Program.
The 4 Turkish companies' total arms revenues amounted to $5.5
billion in 2022, marking a 22% hike from 2021.
Diego Lopes da Silva, a SIPRI senior researcher, said: "A case
in point is Türkiye's Baykar, producer of the Bayraktar TB-2 drone.
Baykar entered the Top 100 for the first time after its arms
revenue rose by 94%, the fastest growth rate of any company in the
ranking."
China accounted for the second largest share of combined Top 100
arms revenues by country, at 18%. The eight Chinese arms companies
saw a 2.7% rise in revenues to $108 billion in 2022.
Due to a lack of data, only two Russian companies were included
in the list, the report said. Their combined arms revenues fell by
12% to $20.8 billion.
The sole Ukrainian company in the Top 100, UkrOboronProm, posted
a 10% decline in its arms revenue to $1.3 billion.
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