Production Woes Hamper Arms Sales Amid Ukraine War

Western arms companies struggled to increase production in 2022 despite a rise in demand for weapons and military equipment due to labor shortages, rising costs, and supply chain disruptions worsened by Russia's invasion of Ukraine. The Stockholm International Peace Research Institute (SIPRI) reported a 3.5% drop in arms revenue for the world's largest arms-producing companies, with the revenues of 42 U.S. companies falling by 7.9%. However, new orders linked to the war in Ukraine are expected to contribute to future revenue, and countries placing late orders could see increased revenue in 2023 and beyond.