The top 100 defence companies worldwide boosted arms sales by 4% in 2023, reports SIPRI

The top 100 defence contractors worldwide experienced a 4.2% increase in arms sales in 2023, reaching $632 billion, driven by ongoing conflicts and regional tensions, according to a prominent think tank’s report released on Monday.

The Stockholm International Peace Research Institute (SIPRI) noted that U.S. companies on the list saw a total sales increase of 2.5% compared to the previous year, totaling $317 billion. However, leading firms such as Lockheed Martin and RTX reported a slight decline in their arms sales.

This growth follows a 3.5% decrease in arms sales in 2022, which SIPRI attributed to labor shortages, supply chain issues, and rising costs that hindered many companies from meeting the heightened demand spurred by Russia’s invasion of Ukraine.

European firms on the list, excluding those from Russia, maintained relatively stable combined sales at $133 billion in 2023, but experienced a significant increase in order intake, with some companies reporting heightened demand related to the conflict in Ukraine.

Earlier this year, SIPRI indicated a 7% rise in global military expenditure for 2023, marking the largest annual increase since 2009.

SIPRI highlighted that smaller manufacturers were more adept at responding to the new demand arising from the conflicts in Gaza and Ukraine, escalating tensions in East Asia, and rearmament initiatives in various regions.

Russian companies on the list, including the state-owned Rostec, recorded the most substantial combined growth, with a 40% increase to $26 billion.

SIPRI researcher Lorenzo Scarazzato remarked that the revenues of the top 100 arms producers do not fully capture the extent of demand, and many companies have initiated recruitment efforts, indicating optimism about future sales.