Economy: The arms giants sell more and more
The turnover of the 100 most important groups in the defense sector in 2020 reached a new peak of 531,000 million dollars (about 470,000 million euros), of which more than 50% corresponded to US companies, according to the International Institute of Studies for the Peace of Stockholm (SIPRI).
This amount means an increase of 1.3% in one year in its sales of arms and services linked to the military field.
In that same period, the world economy fell by more than 3%, says this Sweden-based organization, whose work is considered a global benchmark.
The turnover of these hundred arms groups has increased steadily since 2015, accumulating a total of 17%, according to SIPRI.
With the exception of Russian and French companies, which reduced their sales by 6.5% and 7.7%, respectively, the other powers noted an increase in the income of their groups in this sector during the past year.
The US offers more than 50% of the market
For SIPRI, the strength of these large companies in 2020 is explained by the government's budget support policies in the face of the pandemic.
The arms market is characterized by staggered orders over several years, making it less vulnerable to economic fluctuations.
"In many cases, the measures adopted to try to stop the coronavirus interrupted supply chains and delayed deliveries," highlights SIPRI.
Five American giants once again took the top positions worldwide: Lockheed-Martin (F-35 fighter jets, missiles) ranked first with sales of 58.2 billion dollars, followed by Raytheon Technologies -new number two after a merger--, Boeing, Northrop Grumman and General Dynamics.
The Chinese companies Norinco (7th), Avic (8th) and CETC (9th) and the American L3Harris (10) complete the podium.
The British BAE Systems is the first European group, occupying the 6th position, while Airbus was 11th.
As for China, "its progress as a major arms manufacturer has been driven by its determination to become less dependent on its production and by ambitious programs to modernize" its armed forces, SIPRI notes.
2021 could be different
However, the defense sector has not been completely immune to covid-19.
This report cites the case of Thales, the main French company --excluding Airbus--, 14th in the classification, which attributed the 6% drop in its turnover during 2020 to confinement.
Problems in supply logistics have increased in 2021.
"It is possible that these difficulties will be reflected in its sales" this year, as Lockheed Martin predicts, for example, Lucie Béraud-Sudreau, in charge of monitoring military spending at SIPRI, told AFP.
In addition, another fifteen countries have companies that make up the Top 100 of world arms manufacturing: Japan, with 5, Germany and South Korea 4, Israel and India 3, Italy, 2, while Canada, Singapore, Turkey, Sweden, Poland, Spain, Ukraine and the United Arab Emirates one each.
Several groups also have civil activities, such as Boeing or Airbus, although SIPRI only records their military sales.
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