Wednesday, February 29, 2012

Despite Weak Economies, Global Military Industrial Complex Sales Still Rising

Nations around the world are still buying anti-aircraft missiles and fighter plans, no matter the social turmoil or declining economic output their country’s are facing.

The total arms sales including sales of military services of the Stockholm International Peace Research Institute’s annual top 100 international defense contractors maintained their upward trend in 2010, although at just a 1% gain in real terms. The increase was much slower than in 2009. Since 2002, the increase in military sales has been 60% in real terms, said the Institute, or SIPRI, on Monday.

Arms-producing and military services companies from the U.S., namely Lockheed Martin (LMT), as well as major defense contractors of Western Europe dominated the list of global military sales. Sales by the 44 U.S. companies accounted for over 60% of all arms sales by the top 100 arms-producing companies in 2010. The 30 companies based in Western Europe accounted for a further 29%. The global arms industry continues to be highly concentrated, with the top 10 arms-producing companies accounting for 56% of all top 100 sales, or $230 billion.

‘The data for 2010 shows that war and security, despite the financial crises currently affecting other industries, has a lot of upside. Read More