Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Sunday, Jan 29, 2023

Growth in arms trade stunted by supply issues: report

Growth in arms trade stunted by supply issues: report

Sales of arms and military services grew in 2021, researchers said Monday, but were limited by worldwide supply issues related to the pandemic, with the war in Ukraine increasing demand while worsening supply difficulties.
The top 100 arms companies sold weapons and related services totalling $592 billion in 2021, 1.9-percent more than the year before, said the latest report from the Stockholm International Peace Research Institute (SIPRI).

However the growth was severely impacted by widespread supply chain issues.

“The lasting impact of the pandemic is really starting to show in arms companies,” Nan Tian, a senior researcher at SIPRI, told AFP.

Disruptions from both labor shortages and difficulties in sourcing raw materials were “slowing down the companies’ ability to produce weapons systems and deliver them on time.

“So what we see really is a potentially slower increase to what many would have expected in arms sales in 2021,” Tian said.

Russia’s invasion of Ukraine is also expected to worsen supply chain issues, in part “because Russia is a major supplier of raw materials used in arms production,” said the report’s authors.

But the war has at the same time increased demand.

“Definitely demand will increase in the coming years,” Tian said.

By how much was at the same time harder to gauge, Tian said pointing to two factors that would impact demand.

Firstly, countries that have sent weapons to Ukraine to the tune of hundreds of millions of dollars will be looking to replenish stockpiles.

Secondly, the worsening security environment means “countries are looking to procure more weapons.”

With the supply crunch expected to worsen, it could hamper these efforts, the authors noted.

Companies in the US continue to dominate global arms production, accounting for over half, $299 billion, of global sales and 40 of the top companies.

At the same time, the region was the only one to see a drop in sales: 0.9 percent down on the 2020 figures.

Among the top five companies — Lockheed Martin, Raytheon Technologies, Boeing, Northrop Grumman and General Dynamics — only Raytheon recorded an increase in sales.

Meanwhile, sales from the eight largest Chinese arms companies rose 6.3 percent to $109 billion in 2021.

European companies took 27 of the spots on the top 100, with combined sales of $123 billion, up 4.2 percent compared to 2020.

The report also noted a trend of private equity firms buying up arms companies, something the authors said had become increasingly apparent over the last three or four years.

This trend threatens to make the arms industry more opaque and therefore harder to track, Tian said, “because private equity firms will buy these companies and then essentially not produce any more financial records.”
Newsletter

Related Articles

Hong Kong News
Close
0:00
0:00
China is opening up for foreign investors.
Tesla reported record profits and record revenues for 2022
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
China relaxes 'red lines' on property sector borrowing in policy pivot
Tesla slashes prices globally by as much as 20 percent
Japan prosecutors indict man for ex-PM Shinzo Abe murder
Vietnam removes two deputy PMs amid anti-corruption campaign
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
China’s recovery could add 1% to Australia’s GDP: JPMorgan 
Saudi Arabia set to overtake India as fastest-growing major economy this year 
China vows to strengthen financial support for enterprises: official
International medical experts speak out against COVID-19 restrictions on China
2 Billion People To Travel In China's "Great Migration" Over Next 40 Days
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
Flight constraints expected to weigh on China travel rebound
Billionaire Jack Ma relinquishes control of Ant Group
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
Teslas now over 40% cheaper in China than US
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
China seeks course correction in US ties but will fight ‘all forms of hegemony’, top diplomat Wang Yi says
China will boost spending in 2023
African traders welcome end of China’s Covid travel curbs
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
Preparations begin for Spring Festival travel rush
Domestic COVID-19 drug effective in trial
HK to see a full recovery, John Lee says in New Year message
Bargain hunters flock to last day of Hong Kong brands and products expo
Hong Kong aims for January 8 reopening of border with mainland China
Chinese Revenge Travelers Will Steer Clear of a Hostile US
FTX assets worth $3.5bn held by Bahamas securities regulator
2023 Will Be the Year of the Electric SUV
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
×