Global Arms Sales Hindered by Production Challenges, Despite Rising Demand
Revenues from arms sales by the top 100 companies in the industry decreased by 3.5% in 2022, despite a rise in demand, due to production challenges faced by major US companies. However, revenues increased in Asia and Oceania and the Middle East. The surge in new contracts and outstanding orders suggests that global arms revenues could rise significantly in the coming years. The war in Ukraine and geopolitical tensions fueled the demand for weapons, but labor shortages, soaring costs, and supply chain disruptions hindered production capacity. Asian and Middle Eastern companies demonstrated their ability to respond to increased demand more effectively.