Military sales of the largest groups in the sector increased by 1.3% in 2020, while at the same time the global economy dropped by more than 3%.
Le Monde with AFP
Global armaments giants have been widely spared last year by the effects of the economic crisis caused by COVID-19, with a new record of their sales up for the sixth consecutive year.
The turnover of the one hundred largest groups in the defense sector reached a new $ 531 billion (€ 470 billion) in 2020, including more than half by US companies, according to a report of the International Research Institute of Peace of Stockholm (Sipri) published Monday 6 December.
This represents a 1.3% year-over-year rise in sales of arms and military services, while at the same time the global economy has dropped by more than 3%, underlines the research organization based. In Sweden, whose work refers to the subject.
The turnover of the hundred larger weapons groups has been continuing continues since 2015, with a total increase of 17%, according to the SIPRI. However, growth was lower in 2020 than in 2019, where the Top 100 had seen its sales jump from 6.7%.
Lockheed Martin consolidates its first place
With the exception of Russian companies (-6.5% sales) and French (-7.7%), the other major nations have seen their large companies progress last year. Five American giants monopolize the top of the world rankings: Lockheed Martin (F-35 combat aircraft, missiles …) Consolidated its first place with weapons sales of $ 58.2 billion, in front of Raytheon Technologies New Number Two after a great merge, then Boeing, Northrop Grumman and General Dynamics. The British Bae Systems is the first European (6 e ) with Airbus (11 e ). The Chinese Norinco (7 e ) AVIC (8 e ) and CETC (9 e ) and the American L3Harris (10 e ) Complete the top 10.
According to the Institute, the good resistance of large companies to the difficult economy in 2020 can be explained in particular by budget support policies against the pandemic and the effects of confines. The sector “has been widely protected by maintaining the demand of governments for military equipment,” says SIPRI. The arming market, characterized by multi-year commands is also less sensitive to cyclical hazards.
But the defense industry has not been totally immune to the health crisis, particularly on the industrial aspect. “In many cases, the measures taken to curb the virus disrupted supply chains and delayed deliveries”, note the SIPRI. The report quotes the case of Thales, the first French company – outside Airbus – the ranking (14 e ), which has attributed the confinement the decrease of 6% of its turnover 2020.
The supply logistics problems having multiplied in 2021, “it is possible that these difficulties are reflected in their sales” this year, as foreseen for example Lockheed Martin, points out to the France-Presse agency (AFP ) Lucie Bereud-Sudreau, Responsible for Monitoring Military Expenditures at SIPRI.
Progression on the part of China
Behind the top 100 US companies and their share of 54%, 26 European companies accapped 21% of total sales. Follow China (13% of the total, with five companies) and Russia (5%, nine companies). By counting separately European countries, China is the second country and the United Kingdom third (seven companies, 7.1%), in front of Russia (nine companies, 5%) and France (six companies, 4.7% ).
“China’s progress as a major arming producer was driven by his desire to become more self-dependent in his production and the fact of ambitious modernization programs” of his armies, underlines SIPRI.
About fifteen other countries are home to companies in the world top 100: Japan (5), Germany and South Korea (4), Israel and India (3), Italy ( 2) as well as Canada, Singapore, Turkey, Sweden, Poland, Spain, Ukraine and the United Arab Emirates (1).
Many groups also with civilian activities, such as Boeing or Airbus, only their military sales are counted by the SIPRI.