How to Research Major Arms Manufacturers and Their Profits

Global conflicts and the 'silver' of arms manufacturers: Companies that earned $632 billion in just one year

 How to Research Major Arms Manufacturers and Their Profits

Shakeel Akhtar

Ahda, BBC Urdu.com, Delhi

December, 06/2024

Pros and Cons of Global Conflicts Driving Arms Industry Revenue:

Pros:

1. Economic Growth in Defense Sector:

   Boosts economic activity and employment in the defense manufacturing industry.  

2. Technological Advancements:  

   Funds for research and innovation often lead to technological breakthroughs in both military and civilian sectors.  

3. National Security Strengthening:  

   Increased defense spending enhances military capabilities, ensuring stronger national security.  

Cons:

1. Humanitarian Crisis:  

   Escalation of global conflicts often results in devastating human suffering and displacement.  

2. Exacerbation of Conflicts: 

   Profit-driven arms trade can prolong wars or ignite new conflicts for monetary gain.  

3. Global Instability: 

   Arms proliferation destabilizes regions and increases the risk of large-scale warfare.  

                                                   

The ongoing conflicts around the world, Ukraine, Russia and the wars between Israel and Hamas, have benefited the most from American arms companies.

According to a recent report by the Stockholm International Peace Research Institute (SIPRI), 50% of the military equipment sold worldwide in 2023 was made by American companies alone.

According to this report, American companies sold weapons worth $317 billion last year.

According to SIPRI, China is second on the list after the United States, whose companies sold weapons worth $130 billion worldwide last year.

The report states that in 2023, the world's top 100 arms companies sold military equipment worth $632 billion, which is four points two percent more than in 2022.

Small companies based in Russia and Israel have recorded the highest increase in profits due to ongoing conflicts around the world.

Lorenzo Scerizzetto, a researcher closely monitoring military spending and weapons production associated with SPR, predicted in the report that “weapons revenue has seen a significant increase in 2023 and this increase is expected to continue in 2024.”

It should be noted that the list of 100 companies released by SPR includes two Indian companies, but there is no company from Pakistan.

Figures from the top 100 companies

He further said that ‘the figures released by the world’s 100 largest companies do not give a true picture of the huge global demand for weapons. Many companies have started recruiting technicians and engineers, which shows that they are hoping for a further increase in weapons sales in the future.’

Lorenzo’s organization has also released a separate report that lists the names of the world’s 100 largest arms manufacturers.

According to Spry, five American companies have been on the top of the world’s 100 largest arms manufacturers since 2018, while the total number of American companies among these companies is 41.

Last year, these companies sold a total of $317 billion in weapons.

After Russia’s invasion of Ukraine, the US Department of Defense also recorded an increase in military equipment sales last year in a report.

According to the US Department of Defense, most military equipment was sold to European and allied countries in 2023.

The report of the Department of Defense states that one of the reasons for the increase in arms sales is that many countries are equipping their armies with new weapons and equipment, which is why the demand for modern weapons is constantly increasing.

American companies manufacture warships, rockets, missiles, tanks and drones, etc. Defense analyst Rahul Bedi says, “Warfare equipment is now very expensive compared to the past.”

He says, “Take the example of the US Javelin missile, it is a very good anti-tank missile. The price of just one missile in Pakistani rupees is about 50 million.”

“The actual profit of the US companies, which is shown as $317 billion, will be much higher because the arms business is not in black and white but in a gray area. "Many deals are kept secret, the details of which are not revealed."

Last year, US companies sold $317 billion worth of weapons.

Rahul Bedi says that the defense arms industry in the US is in the hands of the private sector and that ‘there is an arms lobby that many experts believe is actually run by the US government.’

The top 10 arms manufacturers in the world include three from China and one each from Russia and the UK. There are 27 companies from Europe on this list, with a combined revenue of $133 billion in 2023.

The SPR report says that ‘Russian companies that manufacture military equipment have benefited greatly from the war in Ukraine.’ According to the organization’s estimates, the revenue of Russian companies has increased by 40 percent in 2023 and they have sold weapons worth more than $25 billion.

Regarding China, the report says that since the economy there is tending to slow down, the lowest increase in arms revenues in 2023 was 7.0 percent.

The list of 100 companies includes nine Chinese companies, with a combined revenue estimated at $103 billion in 2023.

Rahul Bedi says that “China and Russia have come very close due to political reasons. Russia’s defense technology is very advanced and is ahead of the US and Europe in many areas such as missile and submarine technology.

“This is now being supported by China’s industrial capacity and it is emerging as a very dangerous combination.”

The world's top 100 arms companies sold $632 billion worth of military equipment in 2023

Three Israeli companies are among the world's largest arms companies. Since the start of the Gaza war in 2023, these companies have sold a total of $13.6 billion, their highest sales in history.

Dr. Lopez da Silva, a senior researcher at SPR, believes that these companies' sales reached an unprecedented high in 2023 and this trend is expected to continue.

He says, "If we take into account the record of 2023 and the way the war in Gaza is still raging, it can be expected that Israeli arms companies will receive orders for military equipment this year even more than before."

Three Turkish companies also recorded a 24% increase in arms sales in 2023.

According to Rahul Bedi, "Turkey is a NATO member country. It gets technology from NATO countries and has been rapidly emerging in the technology sector in recent years. Turkey’s arms industry is very modern.

India is among the smallest countries in the list of countries that manufacture and sell arms. In 2023, the combined revenue of its three companies was $6.7 billion.

Analyst Rahul Bedi says, “There are only ten countries in the world that have a monopoly on the arms business. These include the United States, China, Russia, France, Germany, Italy, the United Kingdom, Israel, South Korea and Spain.”

According to SIPRI, companies from these countries control 90% of the global arms market.

Rahul Bedi believes that arms sales will increase further this year and next year due to conflicts, wars and increasing tensions and political uncertainty in many regions of the world.

“Defense experts are waiting for the presidency of the newly elected US President Donald Trump to begin. The volatility of the arms market and much more will depend on what kind of policy they adopt.

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#China #Russia #Israel #America #War