The global arms industry saw a significant increase in production in 2018, according to a study by the Stockholm International Peace Research Institute (SIPRI). The 100 largest arms companies in the world increased their revenues by 4.6% last year, compared to 2.5% in 2017. This marks the fourth consecutive year of growth in the arms industry. The largest US arms companies, including Lockheed Martin, Boeing, Northrop Grumman, Raytheon, and General Dynamics, benefited the most from this growth, as they were able to acquire smaller arms producers. This was triggered by the US President Trump’s weapons modernization program, according to Aude Fleurant, a weapons expert at SIPRI.
China’s imprecise data on arms production meant that the country was not included in the study. However, outside of China, the arms industry generated $420 billion in revenue in 2018, with the US leading the way. The top five US arms companies accounted for a third of the global revenue, with a total estimated revenue of $148 billion. US arms producers were responsible for 59% of the global revenue, with a growth rate of 7.2% compared to 2017. Meanwhile, 27 of the 100 largest arms producers were based in Europe, accounting for 24% of the global revenue. The four largest German arms producers, Rheinmetall, Krauss-Maffei Wegmann, ThyssenKrupp, and Hensoldt, experienced a 3.8% decline in revenue, while Airbus, a trans-European company, ranked seventh in the global revenue ranking.
Since SIPRI began its annual study in 2002, the arms industry has increased its revenue by 47%. However, this growth has raised concerns about the role of arms exports in fueling global conflicts. Cornelia Füllkrug-Weitzel, President of the aid organization Brot für die Welt, called on Germany to “finally adhere to its own principles and unequivocally ban arms exports to crisis regions, including states in the Saudi-led Yemen war coalition.”
