Nearly $600 billion in arms sales worldwide by 2021 French Republicans elect new president

The world’s 100 largest defense companies sold nearly $600 billion worth of heavy weapons and military services in the year leading up to the war in Ukraine. Despite pandemic supply chain disruptions with delays and bottlenecks, global arms sales are up 1.9 percent in 2021 to $592 billion, according to the Stockholm peace research institute Sipri in a report published Monday. The renewed increase was higher than last year, but below the average increase of the four years before Corona.

“Without the ongoing supply chain issues, we would have expected even greater growth in arms sales for 2021,” summarizes Sipri expert Lucie Béraud-Sudreau. Both larger and smaller companies reported write-downs during the year and some, such as aircraft maker Airbus, also reported labor shortages.

According to the report, global arms sales have risen steadily since at least 2015 – the year Sipri was first able to include Chinese companies on its annual list. Between 2015 and 2021, the sales figures of the 100 largest arms companies increased by a total of 19 percent, adjusted for currency effects. The value for 2021 is the highest the peace researchers have recorded since the database was set up some 20 years ago. Sipri covers all sales of heavy weapons and military services to military customers at home and abroad.

After a growth of 1.1 percent in the first Corona year 2020, sales figures rose somewhat more strongly. Against the trend, US companies saw a slight decline of 0.9 percent to $299 billion, which Sipri attributed last year to high inflation in the United States. The 40 publicly traded U.S. companies — including the top five — now collectively account for 51 percent of all sales of the top 100 companies. China follows in second place with a strongly increased share of 18 percent, followed at some distance by Great Britain (6.8 percent) and France (4.9 percent). Germany has a share of 1.6 percent.

With a minimal increase of 0.4 percent, Russia had a share of 3.0 percent before invading Ukraine. While reports indicated that Russian defense companies are ramping up arms production in response to the war in Ukraine, they have struggled to get their hands on semiconductors, Sipri wrote. They are also affected by war-related sanctions.

It is unlikely that we will see how the war in Ukraine will affect global numbers until next year. But the peace researchers wrote: “Russian invasion of Ukraine in February 2022 has increased supply chain challenges for defense companies, not least because Russia is a major supplier of raw materials for weapons production.” According to the report, these include aluminum, copper, steel and titanium.

Ultimately, this could also complicate efforts in the US and Europe to strengthen the military and replenish supplies after sending billions in ammunition and other equipment to Ukraine. “If supply chain disruptions continue, it could take several years for some of the largest arms manufacturers to meet the new demand created by the war in Ukraine,” said Sipri researcher Diego Lopes da Silva.

In Europe, Sipri sees two trends: while sales in military aviation fell, sales rose in shipbuilding. European arms sales increased compared to last year by 4.2 percent to $ 123 billion, those of the four listed German companies Rheinmetall, ThyssenKrupp, Hensoldt and Diehl by a total of 5.6 percent to $ 9.3 billion. Airbus, number 15 after a 15 percent drop in arms sales, considers Sipri a trans-European group.

Greenpeace assumes that arms sales will literally explode in the aftermath of the war in Ukraine. Greenpeace security expert Alexander Lurz warned that countries would then not have this money for social issues, climate protection and education. Germany in particular needs initiatives for international arms restrictions. “The armament companies are making a lot of money from the fact that states are increasingly relying on military strength,” Lurz explains. “The risk of further conflicts and wars increases because the rearmament of one threatens the other.” (sda/dpa)