Western Arms Companies Struggle to Meet Demand Amid Ukraine Conflict
Many Western arms companies struggled to increase production capacity 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, according to the Stockholm International Peace Research Institute (SIPRI). The revenues of the world's largest arms-producing and military services companies dropped by 3.5% to $597 billion, with U.S. companies experiencing a 7.9% decline. However, new orders related to the war in Ukraine are expected to contribute to future revenue, and companies in Asia and the Middle East demonstrated their ability to respond to increased demand more quickly.
