A few days ago, the Stockholm International Peace Research Institute (SIPRI) announced the completion of work on the analysis of the arms market in 2011. The result of this research was a list of more than 100 companies and organizations in the military-industrial sector, distributed by sales volume. At the same time, the list includes companies from all over the world, with the exception of China. The fact is that this country classifies almost all data on the construction of equipment and weapons for itself, as well as on sales to third countries. Naturally, in this case, the successes of Chinese manufacturers of defense products simply cannot be objectively presented in the ranking. In addition to the Top-100 rating itself, general conclusions on the state of the international arms and military equipment market were also published.
First of all, SIPRI employees have noted a slight decline in the market. Although the total volume of the military-technical market has grown by one and a half times since 2002, in 2011 arms sales in monetary terms decreased by about 5% compared to 2010. There are several reasons for this. These are the financial problems of various countries, which do not allow increasing or even maintaining current defense spending, this is the revision of defense doctrines, etc. In addition, the change in the situation in Afghanistan and Iraq affected the reduction in the production and sale of weapons. In recent years, despite regular clashes and fighting, the situation in these countries is slowly but surely returning to normal. As a result, the consumption of ammunition and the loss of weapons or equipment are reduced. Finally, several billion dollars were stolen from the market by sanctions against some countries, for example, Libya.
The distribution of market shares between companies from different countries has undergone changes, but generally remained the same. For example, 44 companies from the United States, included in the rating, produce about 60% of the total amount of weapons sold by all companies participating in the Top 100. Another 29% is accounted for by three dozen Western European organizations. It is noteworthy that in addition to the hundred most successful companies, 19 more companies were included in the “out of competition” rating. The fact is that they are structural subdivisions of larger concerns and corporations, but at the same time they themselves have rather large incomes. They do not have their own places in the rating, and their location in the pivot table is determined in accordance with the level of income.
The first three "Top 100" from SIPRI have not undergone major changes for several years. In 2011, the American corporation Lockheed Martin earned the most, selling military products worth 36, 27 billion US dollars. It is worth noting that military products account for 78% of all Lockheed-Martin revenues. In 2011, the American company Boeing rose to second place with revenue of 31.83 billion ("military" revenues - 46% of the total). The three leaders are closed by the British from BAE Systems. This concern in 2011 earned more than three billion less than in 2010, and as a result, revenue of $ 29, 15 billion did not allow it to retain its second place. The most successful business unit of the larger firm in 2011 turned out to be BAE Systems Inc. - the British branch of the international giant in third place in the overall list. With revenue of 13.56 billion, this organization could take ninth place in the "Top 100".
Only eight Russian companies were included in the top 100 defense enterprises and their structural subdivisions. The best of them - United Aircraft Corporation - rose from 21st (2010) to 18th place, having sold products for 4.44 billion dollars in 2011. The Almaz-Antey Air Defense Concern is almost a billion dollars behind: with an annual income of 3.66 billion, it dropped two places and stopped at 22nd position. Russian Helicopters, in turn, increased sales and, with revenues of 2.56 billion, climbed to 40th place. The United Engine Corporation, having earned 1.33 billion, firmly occupies 60th place, slightly improving its position. The largest growth of all Russian companies in 2011 was shown by the Nizhny Tagil Uralvagonzavod. Over the year, his income increased from $ 730 to $ 1200 million. Such a leap helped to rise from 91st to 64th (!) Place in the overall rating. The list of Russian independent organizations in the "Top 100" from SIPRI is closed by the concern "Radio Engineering and Information Systems". His $ 1.05 billion in revenue earned him 69th place in the rankings. It should be noted that for the first time the concern was included in the list of the best manufacturers of military products.
The most successful of the Russian companies that are part of larger organizations turned out to be Sukhoi. Thanks to the sale of aircraft with a total value of 2.63 billion dollars, this company could be in 39th place in the ranking. Irkut Corporation, like Sukhoi, which is part of the United Aircraft Corporation, earned 1,070 billion in 2011 and could move the Radio Engineering and Information Systems concern from 69th place.
In total, Russian companies in the Top 100 sold arms and military equipment worth $ 12.94 billion in 2011, which is $ 1.7 billion more than in the previous year. As you can see, last year's success in the field of arms sales was due to a gradual increase in both government purchases and export contracts. The current trend will be further revealed in the next Top 100 Arms Manufacturers report, which will describe the market situation in the past 2012. However, this report will appear only in a year, since the quality of the analysis is directly related to the time spent.
Probably, Russian companies will improve their positions in the Top 100 for 2012, but there is no need to talk about entering the top ten so far. First of all, because all the revenues of Russian organizations in 2011 are at the level of companies ranked ninth to tenth in the rating. It is unlikely that any of the Russian merged corporations will be able to achieve the same indicators as almost the entire industry within a couple of years. At the same time, it should be noted that almost all companies from the first 10-20 places in the rating have contracts with the armed forces of the United States and NATO countries. Despite all the cuts, these states still continue to pour big money into their defense, which is why the supply companies maintain consistently high incomes. As a result, seven of the top ten companies are based in the United States, the country with the largest military budget in the world.
Unfortunately, the SIPRI Top 100 does not include the achievements of the Chinese defense industry. According to various estimates, the same Norinco corporation could claim a place not lower than twentieth. However, China has traditionally kept secret all the details of its rearmament, including financial ones. Therefore, Norinco, Shenyang Aircraft Corporation or China Shipbuilding Industry Corporation, with all their high potential, do not participate in the overall ranking. In addition to China, other countries are noted in the notes to the overall ranking, examples of which are Kazakhstan and Ukraine. According to SIPRI analysts, these states have large defense enterprises with good income. However, these companies do not publish enough data and, like the Chinese, cannot be included in the top 100 firms ranking.
In general, the results of the arms trade in 2011 continue the trend with no major changes. The total sales figures are growing or falling insignificantly, and only two companies can boast of a big jump up the rating by several dozen places: the Russian Uralvagonzavod and the Japanese Kawasaki Heavy Industries. As for the new players on the market, only eight companies entered the top 100 in 2011, including one Russian. So with a reduction in total volumes, the market for weapons and military equipment in 2011 remained almost unchanged. Under certain circumstances, this phenomenon can turn into a serious trend, which, in turn, is quite capable of helping manufacturers in a given country to increase their market share and income.
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