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The Industry.

US companies increase their share of total Top 100 arms sales

With 42 companies listed in 2017, companies based in the United States continued to dominate the Top 100 in 2017. Taken together, the arms sales of US companies grew by 2.0 per cent in 2017, to $226.6 billion, which accounted for 57 per cent of total Top 100 arms sales. Five US companies were listed in the top 10 in 2017. 'US companies directly benefit from the US Department of Defense's ongoing demand for weapons,' says Aude Fleurant, Director of SIPRI's Arms and Military Expenditure Programme.

Lockheed Martin remained the world's largest arms producer in 2017, with arms sales of $44.9 billion. The gap between Lockheed Martin and Boeing--the two largest arms producers in the world--increased from $11 billion in 2016 to $18 billion in 2017,' says Fleurant.

Source: Sipri

https://www.sipri.org/media/press-release/2018/global-arms-industry-us-companies-dominate-top-100-russian-arms-industry-moves-second-place

DSCA - Fiscal Year 2017 Sales Total $41.93B - 28/11/2017

WASHINGTON, November 28, 2017 - The Defense Security Cooperation Agency (DSCA) announces sales of $41.93 billion for Fiscal Year 2017. The total sales include $6.04 billion of cases funded by the State Department's Foreign Military Financing; $3.87 billion in cases funded under Defense Department authorities; and $32.02 billion funded by partner nations through the Foreign Military Sales (FMS) system.

These figures demonstrate a strong demand for U.S. products and services, particularly through FMS. For the past few years, DSCA has been working with the Department of State's Bureau of Political-Military Affairs, the Office of the Secretary of Defense for Policy, and other stakeholders throughout the U.S. Government, defense industry, and foreign partner communities to streamline processes to ensure even more responsiveness when delivering capabilities to U.S. partners.

"This positive sales trend isn't surprising as the United States is the global provider of choice for Security Cooperation," said LTG Charles W. Hooper, who became DSCA's Director in August. "We deliver not only the most effective defense systems to our partners, but we also ensure a Total Package' approach that includes the provision of training, maintenance, and sustainment, to support full spectrum capability for our partners."

FMS is a security assistance program authorized by the Arms Export Control Act under the direction of the Secretary of State. The United States uses FMS to further U.S. foreign policy and national security objectives by sales of defense articles, defense services, and military training to foreign countries and international organizations. FMS is one of DSCA's most well-known Security Cooperation programs and has served as a key tool of U.S. diplomacy and defense for the past 70 years.

http://www.dsca.mil/news-media/news-archive/fiscal-year-2017-sales-total-4193b

AIA : FOURTH QUARTER & YEAR-END 2016

The U.S. Aerospace and Defense (A&D) industry posted its fifth consecutive trade record in 2016, shipping $146 billion of exports, and generating its largest positive trade balance to date of $90.3 billion. A&D also continued its second year of outperforming the national trade average, growing by 2.2% year-over-year (YoY) compared to -3.3% for exports of all other U.S. goods.

Despite posting new records, A&D export gains continued to level off in 2016 as a result of lower export volumes from the industry's civil aerospace sector. Exports of civil aerospace products including aircraft, engines and parts totaled

$123.7 billion-a 1.6% YoY increase over 2015. Although a net positive, 2016 is lower than YoY gains for 2015 and 2014, which were 6.7% and 7.7%, respectively. On the other hand, shipments of military systems continued to post strong growth in 2016 and generated $22.3 billion in exports for a YoY increase of 6%.

On a geographic basis, U.S. A&D exports experienced the largest YoY gains in Europe and the Middle East (13.6% and 22.3% respectively), while the Americas and the Asia-Pacific region experienced the largest YoY losses (-14.3% and -6.4%, respectively). In 2016, Europe edged-out the Asia-Pacific region as the industry's largest export destination, posting $49.9 billion in U.S. exports, compared to the Asia-Pacific's $49.5 billion. Exports to the Americas followed with $25.4 billion, the Middle East with $16.7 billion and Africa with $3.7 billion.

Highlights :

** ln 2016, the U.S. A&D industry shipped a record $146 billion of exports, which is an increase of 52% over the past five years.

** A&D accounted for 10% of all U.S. exports in goods and is the nation's second largest gross exporter.

** A&D generated the largest trade surplus of any U.S. industry - $90 billion in 2016 - a distinction the industry has enjoyed for several decades.

** Civil aerospace exports accounted for 85% of total A&D exports in 2016 while defense accounted for the remaining

15%.

** Europe was the A&D industry's largest export destination, accounting for 34% of total U.S. A&D exports in 2016. Exports to the region have grown by 39% since 2011.

http://www.aia-aerospace.org/research-center/quarterly-update/

AIA : AEROSPACE AND DEFENSE: AN ECONOMIC IMPACT ANALYSIS - 20/04/2016

In January 2016, the Aerospace Industries Association commissioned business information firm IHS, Inc. to quantify the economic contributions of the U.S. Aerospace and Defense (A&D) industry to the U.S. economy and provide enhanced understanding of the industry's extensive supply chain, by economic sector at the national and state level. The key findings of this study measure the economic contribution the A&D industry makes in terms of employment, value added (contribution to GDP), sales (output), labor income and taxes within the broader economy.

In the study, IHS estimates that in 2015 the U.S. aerospace and defense industry fueled the following contributions to the U.S. economy:

** Supported 1.7 million jobs within businesses producing end-user goods and services and within the industry's supply chain, with about 531,000 jobs in the industry's commercial aerospace segment (e.g. civil and general aviation aircraft, helicopters and space systems) and 511,000 jobs in the defense and national security segment of the industry (e.g. military aircraft, ground and sea systems, armaments and space systems).

** Represented approximately two percent of the nation's employment base and 13 percent of the nation's manufacturing employment base.

** Generated $300 billion in economic value, representing 1.8 percent of total nominal Gross Domestic Product in the U.S., and 10 percent of manufacturing output.

** Produced labor income approximately 44 percent above the national average - $93,000 average labor income per job - reflecting the highly skilled nature of the workforce.

** Provided tax receipts to federal, state and local governments from companies and their employees of $63 billion, or about 1.7 percent of total tax revenues.

http://www.aia-aerospace.org/research_reports/aerospace_and_defense_an_economic_impact_analysis/

The complete report is here :

http://www.aia-aerospace.org/assets/AD_lndustry_Economic_lmpact_Analysis_Final.pdf

SIPRI

Global arms industry: First rise in arms sales since 2010, says SIPRI

Sales of arms and military services by the world's largest arms-producing and military services companies--the SIPRI Top 100--totalled $374.8 billion in 2016, according to new international arms industry data released today by the Stockholm International Peace Research Institute (SIPRI).

The total for the SIPRI Top 100 in 2016 is 1.9 percent higher compared with 2015 and represents an increase of 38 per cent since 2002 (when SIPRI began reporting corporate arms sales). This is the first year of growth in SIPRI Top 100 arms sales after five consecutive years of decline.

US companies increase their share of total arms sales in 2016

At a combined total of $217.2 billion, arms sales of US companies listed in the SIPRI Top 100 grew by 4.0 per cent in 2016. US military operations overseas as well as acquisitions of large weapon systems by other countries have driven this rise. Arms sales by Lockheed Martin--the world's largest arms producer--rose by 10.7 per cent in 2016, which was decisive to the increase in the USA's share of overall SIPRI Top 100 sales to 57.9 percent. 'With the acquisition of helicopter producer Sikorsky in late 2015 and higher delivery volumes of the F-35 combat aircraft, Lockheed Martin reported significant growth in its arms sales in 2016,' says Aude Fleurant, Director of SIPRI's Arms and Military Expenditure Programme.

The rise in sales and the number of US military services companies ranked in the SIPRI Top 100 are noticeable trends in 2016. Some of these companies have increased their sales through the acquisition of the military services divisions of larger arms producers. This was the case for Leidos, for example, which acquired Lockheed Martin's information technology and technical services businesses in 2016.

Arms sales by companies in Western Europe remain stable, but trends diverge

The combined arms sales of companies in Western Europe listed in the SIPRI Top 100 remained stable in 2016 ata total of $91.6 billion--an increase of 0.2 per cent compared with 2015. However, the trends for arms sales in the largest arms-producing countries--namely the United Kingdom, France, Italy and Germany--displayed clear divergences. There were overall decreases in the arms sales of Trans-European, French and Italian companies, while companies in the UK and Germany recorded overall increases.

'Germany's 6.6 percent increase in arms sales for 2016 is mainly due to the growth in sales of armoured vehicle producer Krauss-Maffei Wegmann (12.8 per cent) and land systems producer Rheinmetall (13.3 per cent),' says SIPRI Senior Researcher Pieter Wezeman. 'Both companies have benefited from demand for arms in Europe, the Middle East and South East Asia.'

The UK's decision to withdraw from the European Union did not seem to have an impact on the arms sales of British companies, which rose by 2.0 per cent in 2016. The arms sales of BAE Systems, the fourth largest arms producer globally, remained stable (up by 0.4 per cent). The highest growth in arms sales by a British company (43.2 per cent) was recorded by GKN, an aerospace components manufacturer.

Russian arms sales grow, but pace of increase slows

The combined arms sales of Russian companies listed in the SIPRI Top 100 increased by 3.8 per cent, amounting to $26.6 billion in 2016. Russian companies accounted for 7.1 per cent of the overall total. The major economic difficulties experienced by Russia in 2016 have contributed to a slowdown in the rate of increase in the arms sales of Russian companies,' says SIPRI Senior Researcher Siemon Wezeman.

Among the 10 Russian companies listed in the SIPRI Top 100, the trends in arms sales are mixed: five companies recorded sales growth, while the other five showed decreases. The highest ranked Russian company in the SIPRI Top 100 for 2016 is United Aircraft Corporation, which is placed 13th. Its arms sales grew by 15.6 percent compared with 2015 due to increased deliveries to the Russian armed forces and higher export volumes.

South Korea dominates arms sales by emerging producers

SIPRI's 'emerging producers' category covers companies based in Brazil, India, South Korea and Turkey. The trend in this category for 2016 is dominated by the 20.6 per cent overall increase in the arms sales of South Korean companies, with total sales amounting to 8.4 billion. 'Continuing and rising threat perceptions drive South Korea's acquisitions of military equipment, and it is increasingly turning to its own arms industry to supply its demand for weapons,' says Siemon Wezeman. 'At the same time, South Korea is aiming to realize its goal of becoming a major arms exporter.'

Falling Japanese arms sales drive decline in other established producers' total

SIPRI's 'other established producers' category covers companies based in Australia, Israel, Japan, Poland, Singapore and Ukraine. The combined arms sales of companies in these countries fell by 1.2 percent in 2016, largely driven by an overall decrease in the arms sales of Japanese companies (-6.4 per cent). Japan's largest arms companies experienced sharp falls in 2016: Mitsubishi Heavy Industries' arms sales decreased by 4.8 per cent, while those of Kawasaki Heavy Industries and Mitsubishi Electric Corporation declined by 16.3 and 29.2 per cent respectively.

The SIPRI Arms Industry Database

The SIPRI Arms Industry Database was created in 1989. It contains financial and employment data on arms-producing companies worldwide. Since 1990, SIPRI has published data on the arms sales and employment of the 100 largest of these arms-producing companies in the SIPRI Yearbook.

'Arms sales' are defined by SIPRI as sales of military goods and services to military customers, including sales for domestic procurement and sales for export. Changes are calculated in real terms and country comparisons are only for the same companies over different years.

For information and interview requests contact SIPRI Communications Officer Alexandra Manolache (alexandra.manolache@sipri.org, +46 766 286 133) or SIPRI Communications Director Stephanie Blenckner (blenckner@sipri.org, +46 8 655 97 47).

This is the first of three major data set pre-launches in the lead-up to the publication of the 2018 edition of the SIPRI Yearbook. In the first half of 2018, SIPRI will release its international arms transfers data (details of all international sales, transfers and gifts of major weapons in 2017) as well as its world military expenditure data (comprehensive information on global, regional and national trends in military spending). All data will feature in the SIPRI flagship publication SIPRI Yearbook 2018 to be published in mid 2018.

https://www.sipri.org/media/2017/global-arms-industry-first-rise-arms-sales-2010-says-sipri
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Publication:US Armaments
Geographic Code:4E0WE
Date:May 28, 2019
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