The upstart British manufacturer BAE is no longer the world’s largest producer of killing machines, killing machine-accessories and killing-related services. That great honor, once again, belongs to an American company, Lockheed Martin.
This is according to SIPRI, a Swedish organization that researches something called “peace” (peas? appeasement?). Today, SIPRI releases its latest annual “top 100” list of arms producers. War Is Business obtained an advance copy of some of the findings, which I’ll present below.
Contrary to some other recent reports on the “health” of the arms trade, SIPRI identifies the weapons business as somewhat recession-proof—at least through 2009.
According to SIPRI researcher Susan Jackson, “US government spending on military goods and services is a key factor in arms sales increases.”
“Despite the continuing global economic recession in 2009, the total arms sales of the SIPRI Top 100…increased by $14.8 billion from 2008 to reach $401 billion in 2009, a real increase of 8 per cent,” Jackson says in the press release.
Of course, a different methodology could produce a different result. SIPRI defines arms sales “as sales of military goods and services to military customers, including both sales for domestic procurement and sales for export.” The inclusion of domestic procurement figures makes SIPRI’s numbers somewhat higher than other measures, but probably more reflective of actual military spending trends around the world.
Unfortunately, SIPRI’s arms industry database omits a rising player, China, which is beginning to export firearms and explosives like they’re cheap plastic toys.
That, and the exclusion of private armies, mercenary firms, militias and other non-state customers, mean that SIPRI’s totals are, on balance, significantly lowballed.
Regardless of those limitations, this is valuable research.
Top 10 Global Arms Producers (SIPRI 2009)
Company
Country
Arms sales
Lockheed Martin
USA
$33,430,000,000
BAE Systems
UK
$33,250,000,000
Boeing
USA
$32,300,000,000
Northrop Grumman
USA
$27,000,000,000
General Dynamics
USA
$25,590,000,000
Raytheon
USA
$23,080,000,000
EADS
Trans-Eur.
$15,930,000,000
Finmeccanica
Italy
$13,280,000,000
L-3 Communications
USA
$13,010,000,000
United Technologies
USA
$11,110,000,000
About the top 10, SIPRI notes the following:
- If BAE Systems’ US-based subsidiary (BAE Systems, Inc.) were a parent company, its arms sales would place it at 7th in the Top 100 for 2009. Its 2009 arms sales were $19 280 m.
** EADS’ shareholder structure is: 22.46% Sogeade (Lagadere and French state holding company); 22.46% Daimler (% represents voting rights); 5.48% SEPI (Spanish state holding company); 0.06% the French state (shares held out of contractual partnership); 49.12% institutional, retail and employee ownership; and 0.39% Treasury shares (without economic or voting rights). EADS is headquartered in the Netherlands.
Here’s another table SIPRI released in advance of the full report. It’s interesting how heavily invested many of these companies are in the war business. Most would be financially crippled in the event of some lasting peace.
Top Western European Arms Producers (SIPRI 2009)
Company
Arms sales
Arms sales as percentage of revenue
BAE Systems
$33,250,000,000
95
EADS
$1,593,000,000
27
Finmeccanica
$1,328,000,000
53
Thales
$1,020,000,000
57
SAFRAN
$4,740,000,000
33
Rolls-Royce
$4,140,000,000
26
DCNS
$3,340,000,000
100
Saab
$2,640,000,000
82
Rheinmetall
$2,640,000,000
55
Cobham
$2,260,000,000
77
CEA
$2,160,000,000
39
Serco
$2,110,000,000
34
Babcock International Group
$2,010,000,000
68
Navantia
$1,980,000,000
90
QinetiQ
$1,770,000,000
70
Krauss-Maffei Wegmann
$1,630,000,000
95
ThyssenKrupp
$1,550,000,000
3
Groupe Dassault
$1,360,000,000
29
VT Group
$1,240,000,000
64
Nexter
$1,230,000,000
100
GKN
$1,110,000,000
17
Kongsberg Gruppen
$1,090,000,000
50
Diehl
$1,070,000,000
35
Indra
$940,000,000
27
Fincantieri
$860,000,000
19
Ultra Electronics
$810,000,000
80
Meggitt
$810,000,000
45
Chemring Group
$750,000,000
96
MTU Aero Engines
$740,000,000
20
RUAG
$730,000,000
47
Avio (Cinven, UK)
$670,000,000
28
Patria
$660,000,000
88
Fiat
$650,000,000
1
Of the full top 100:
• 45 companies are based in the US
• 33 in Western Europe
• 10 in Asia, and
• 7 in the Middle East
Notably, all of those top Asian and Middle Eastern producers are in countries allied with the US: Japan (4), Israel and India (3 apiece), South Korea (2), Kuwait, Singapore and Turkey (1 apiece).