SIPRI: Ukraine war is not all good news for arms industry - DW (English)

The world's apical 100 arms producers continued to summation income successful 2021, but proviso concatenation issues person slowed maturation successful the sector, according to a caller study from the Stockholm International Peace Research Institute (SIPRI).

Shortages caused by the COVID-19 pandemic played a relation successful stifling maturation to 1.9% successful 2021 compared to 2020, the study published connected Monday noted. SIPRI predicted that the war successful Ukraine could origin akin problems for the manufacture successful the adjacent to mean term.

What the study predicted connected Ukraine

While some Russia's invasion and Ukraine and the West's response person driven up request for weapons, they besides person near producers facing challenges successful sourcing earthy materials and components. 

SIPRI, an planetary institute that focuses connected probe into conflict, armaments, arms power and disarmament, noted that Russia is simply a large supplier of earthy materials utilized successful arms production.

"This could hamper ongoing efforts successful the United States and Europe to fortify their equipped forces and to replenish their stockpiles aft sending billions of dollars worth of ammunition and different instrumentality to Ukraine," the study said.

Although Russian companies are expanding accumulation due to the fact that of the war, the SIPRI study noted that they person had trouble accessing semiconductors. Companies are besides being impacted by war-related sanctions, for lawsuit erstwhile it comes to receiving payments.

"Increasing output takes time," said Diego Lopes da Silva, SIPRI elder researcher. "If proviso concatenation disruptions continue, it whitethorn instrumentality respective years for immoderate of the main arms producers to conscionable the caller request created by the Ukraine war."

What happened successful 2021

The report's main absorption was connected manufacture patterns successful 2021, erstwhile it recovered proviso concatenation issues related to the pandemic appeared to dilatory growth. 

"We mightiness person expected adjacent greater maturation successful arms income successful 2021 without persistent proviso concatenation issues," said Lucie Beraud-Sudreau, manager of the SIPRI subject expenditure and arms accumulation program. "Both larger and smaller arms companies said that their income had been affected during the year. Some companies, specified arsenic Airbus and General Dynamics, besides reported labour shortages."

North America

Companies successful the United States dominated the database of apical 100 arms suppliers, with 40 of the firms being based there. They besides took much than fractional of sales, $299 cardinal (€284 billion) retired of a  global full of $592 billion. Since 2018, the apical 5 companies successful the apical 100 person been based successful the United States.

North America was the lone portion to spot a driblet successful arms income compared to 2020. The 0.8% real-terms diminution was partially owed to precocious ostentation successful the US system during 2021. 

Europe

For 2021, 27 of the apical 100 arms suppliers were headquartered successful Europe. The portion saw combined arms income summation by 4.2% compared to 2020, totaling $123 billion.

While it was a profitable twelvemonth for shipbuilders, craft manufacturers successful the portion did not fare truthful well. 

"Most of the European companies that specialize successful subject aerospace reported losses for 2021, which they blamed connected proviso concatenation disruptions," said Lorenzo Scarazzato, a researcher with SIPRI. "In contrast, European shipbuilders look to person been little affected by the pandemic fallout and were capable to summation their income successful 2021."

With arms income of $4.5 billion, Rheinmetall (ranked 31st) remained the largest arms institution successful Germany. However, its arms income fell by 1.7% in 2021 owed to the pandemic and proviso concatenation disruptions.

Asia

Combined arms income of the 21 companies successful Asia and Oceania included successful the apical 100 reached $136 cardinal successful 2021 — a 5.8% summation implicit 2020. The 8 Chinese arms companies successful the listing had full arms income of $109 billion, a 6.3% increase. 

These see China's CSSC, present the biggest subject shipbuilder successful the world, with arms income of $11.1 billion, aft a merger betwixt 2 existing companies.

Combined arms income of the 4 South Korean companies successful the apical 100 grew by 3.6% compared with 2020, reaching $7.2 billion. They included a 7.6% emergence successful income for the cross-sector conglomerate Hanwha, which is expected to spot further maturation aft a large arms woody with Poland that followed Russia's penetration of Ukraine.

It was the archetypal twelvemonth successful which a Taiwanese firm, NCSIST, which specializes successful missiles and subject electronics, has appeared connected the database — with arms income of $2 billion.

Russia and the Middle East

Six Russian companies were included successful the apical 100 for 2021 with income that totaled $17.8 cardinal — an summation of 0.4% implicit 2020. SIPRI noted that, up of the Russian penetration of Ukraine, determination were signs that stagnation was wide crossed the Russian arms industry.

The 5 companies based successful the Middle East generated $15.0 cardinal successful arms income successful 2021. This was a 6.5% summation compared with 2020, the fastest gait of maturation of each regions represented successful the Top 100.

Edited by: Sean Sinico