Global arms industry: USA remains dominant despite decline

The sales of arms and military services companies in the SIPRI Top 100 have fallen for the fifth consecutive year. However, at only a 0.6 per cent decline, the slight decrease may signal a possible reversal of the downward sales trend observed since 2011. US companies still way ahead despite falling revenues Companies based in the United States continue to dominate the Top 100 with total arms sales amounting to USD 209.7 billion for 2015. Arms sales by US companies in the Top 100 decreased by 2.9 per cent compared with 2014 – the fifth consecutive year of decline. ‘Lockheed Martin remains the largest arms producer in the world,’ says Aude Fleurant, Director of SIPRI’s Arms and Military Expenditure Programme. ‘However, US companies’ arms sales are constrained by caps on US military spending, delays in deliveries of major weapon systems and the strength of the US dollar, which has negatively affected export sales.’ Many of the larger US arms-producing companies divested their military services activities after 2010 due to falling demand. A number of the new, smaller companies created by this process have consolidated and have built up sufficient revenue to rank in the Top 100 for 2015; three such companies are CSRA, Engility and Pacific Architects and Engineers. List of the US companies

1	Lockheed Martin Corp	41	CSRA
2	Boeing		Bell Helicopter Textron
4	Raytheon	42	Hewlett–Packard
5	Northrop Grumman Corp.	44	General Atomics
6	General Dynamics Corp.	56	Orbital ATK
	BAE Systems Inc.	57	ManTech International Corp.
8	United Technologies Corp.	59	GenCorp
10	L-3 Communications	61	Vectrus
12	Huntington Ingalls Industries	62	Jacobs Engineering Group
15	Harris Corp.	64	Engility
18	Bechtel Corp.	70	DynCorp International
	Pratt & Whitney	74	Oshkosh Corp.
20	Booz Allen Hamilton	77	Triumph Group
21	Textron	82	Cubic Corp.
23	Honeywell International	83	Moog
26	Leidos	84	Fluor Corp.
	Sikorsky Aircraft Corp.	86	The Aerospace Corp.
27	General Electric	89	Teledyne Technologies
31	Science Applications International Corp.	90	MIT
34	CACI International	91	Alion Science & Technology
38	Rockwell Collins	99	Pacific Architects and Engineers
40	AECOM

West European arms sales up in 2015 after falls in 2014 Arms sales by companies in Western Europe listed in the SIPRI Top 100 for 2015 rose by 6.6 per cent in real terms compared with 2014, with total combined revenues from arms sales amounting to USD 95.7 billion. This increase contrasts with the notable drop in West European companies’ revenues from arms sales recorded between 2013 and 2014. The combined arms sales of the six French companies listed in the Top 100 totalled USD 21.4 billion in 2015, a rise of 13.1 per cent compared with 2014, when most of those companies recorded a fall in arms sales. ‘Major arms export deals in 2015, such as those to Egypt and Qatar, have increased French arms companies’ sales,’ says Fleurant. ‘A 67.5 per cent surge in arms sales by Dassault Aviation Group seems to be mainly the result of such exports.’ The three German companies listed in the Top 100 continued to increase their combined sales (by 7.4 per cent) in 2015. Companies in the Top 100 based in the United Kingdom reversed the downward trend recorded in 2014 with a 2.8 per cent rise in their combined arms sales in 2015. List of the European companies

3	BAE Systems		Alenia Aermacchi
7	Airbus Group	55	Serco
9	Finmeccanica	58	Fincantieri
11	Thales	60	Polish Armaments Group
14	Safran	63	Nexter
16	Rolls-Royce	73	GKN
22	Babcock International Group	75	QinetiQ
24	DCNS	79	Pilatus Aircraft
	MBDA	80	Meggitt
	AgustaWestland	85	Krauss-Maffei
30	Rheinmetall	87	RUAG
33	Saab	93	Kongsberg Gruppen
45	CEA	94	AirTanker
46	ThyssenKrupp	95	Ultra Electronics
47	Dassault Aviation Group	97	CMI Groupe
	Selex ES	3

Continued growth in sales by the Russian arms industry The combined arms sales of the 11 Russian companies in the 2015 Top 100 reached USD 30.1 billion, representing 8.1 per cent of the total Top 100 arms sales for 2015 and an increase of 6.2 per cent compared with 2014. Ten out of the 11 companies listed have increased their arms sales in 2015.

13	Almaz-Antey	50	United Engine Corp.
17	United Aircraft Corp.	51	KRET
19	United Shipbuilding Corp.		UMPO
24	Russian Helicopters	66	Uralvagonzavod
35	Tactical Missiles Corp.		Admirality Shipyards
48	United Instrument Manufacturing	98	RTI Group
49	High Precision Systems

South Korea leading the rise of emerging producers in the Top 100 The significant growth in emerging producers’ arms sales is mostly attributable to South Korean companies, which increased sales by 31.7 per cent in 2015.

28	Mitsubishi Heavy Industries (Japan)	69	ASELSAN (Turkey)
29	Elbit Systems (Israel)	71	Hanwha Corp. (South Korea)
32	Israel Aerospace Industries (Israel)	72	Austal (Australia)
36	Hindustan Aeronautics (India)	76	Mitsubishi Electric Corp. (Japan)
37	Kawasaki Heavy Industries (Japan)	78	Turkish Aerospace Industries (Turkey)
39	Indian Ordnance Factories (India)	81	UkrOboronProm (Ukraine)
52	LIG Nex1 (South Korea)	88	Embraer (Brazil)
53	ST Engineering (Singapore)	92	CAE (Canada)
54	Korea Aerospace Industries (South Korea)	96	Poongsan Corp. (South Korea)
65	Hanwha Techwin (South Korea)	100	Hanwha Thales (South Korea)
67	DSME (South Korea)
68	Bharat Electronics (India)