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The world’s weapons-producing companies are cashing in on the wars in Ukraine and Gaza, as well as benefiting from other countries ramping up military spending.
Stoked by the wars in Gaza and Ukraine, the revenues of the 100 largest arms-makers grew to a record US$679 billion ($1 trillion) last year.
The 5.9 per cent increase in revenue from sales of arms and military services in 2024 was also due to countries boosting their military spending.
The Stockholm International Peace Research Institute (SIPRI) report released on Monday said the $1 trillion revenue was the highest figure it has recorded.
The rise in arms sales was primarily driven by companies located in Europe and the United States, while increases were also observed globally. However, the trend did not extend to Asia and Oceania, where challenges in China’s defense sector resulted in a minor decline.
Thirty of the 39 US companies in the top 100 — including Lockheed Martin, Northrop Grumman and General Dynamics — posted increases.
Their combined revenue was up 3.8 per cent at US$334 billion ($512 billion).
But SIPRI noted that “widespread delays and budget overruns continue to plague development and production” in major US-led programs, including the F-35 fighter jet.
Twenty-three of the 26 companies in Europe, excluding Russia, saw their arms revenue increase as the continent boosted spending.
Collectively, these companies saw their revenues climb by 13 percent, reaching a total of $151 billion USD (approximately $232 billion AUD). This surge was largely propelled by the heightened demand stemming from the conflict in Ukraine and growing concerns over Russian aggression.
There were notably big gains for the Czech Republic’s Czechoslovak Group, whose revenue soared by 193 per cent, thanks in part to a government-led project to source artillery shells for Ukraine, and for Ukraine’s JSC Ukrainian Defense Industry, which had a 41 per cent gain.
Arms revenue also grew in the Middle East, and the three Israeli companies in the ranking had a 16 per cent increase to US$16.2 billion ($24.9 billion).
In 2024, the backlash over Israeli actions in Gaza “seems to have had little impact on interest in Israeli weapons”, SIPRI researcher Zubaida Karim said, and many countries continued to place new orders.
— Reporting by the Associated Press via the Australian Associated Press.
