As the global arms industry enjoys unprecedented financial gains fuelled by rising geopolitical tensions and increased military spending, ethical concerns and calls for accountability are also intensifying.
The weapons industry is benefitting from a steep rise in military spending, as governments increase their budgets in response to escalating tensions in the Middle East and Asia and Russia’s invasion of Ukraine.
Analysis by Vertical Research Partners for the Financial Times reveals how, in benefiting from a surge in government orders for new weapons and amid increasing geopolitical tensions, the largest aerospace and defence companies in the world are set to rake in record levels of cash over the next three years.
With new contracts for missiles and ammunition, Europe’s BAE Systems, Rheinmetall and Sweden’s Saab, are forecast to see a combined cash flow jump of more than 40 percent.
The top 15 defence contractors are set to log free cash flow of $52bn in 2026, almost double their combined cash flow at the end of 2021. The five top US defence contractors, excluding Boeing, are projected to generate cash flow of $26bn by the end of 2026, more than double the amount in 2021.
In the US, recent aid bills for Israel, Ukraine, and Taiwan, allocated nearly $13bn for weapons production at America’s five biggest defence groups – RTX, Lockheed Martin, Northrop Grumman, Boeing and General Dynamics – and their suppliers. In Britain, the Ministry of Defence has assigned £7.6bn in military aid to Ukraine over the past three years.
The FT notes how large repurchases effectively using taxpayers’ money by US contractors, have prompted criticism among some lawmakers who have questioned whether firms are investing enough in new facilities and production. Bosses have insisted they are boosting capital spending even as they return money to investors.
As arms firms cash in on war, and UN human rights experts and the International Court of Justice concluded in January that Israel’s actions may plausibly amount to genocide, calls are mounting in Britain for the government to stop arming Israel.
On August 26, a demonstration took place at the Elbit Arms Factory in Shenstone, with pro-Palestine and anti-war campaigners, demanding that Elbit facilities are shut down.
As the global arms industry enjoys unprecedented financial gains fuelled by rising geopolitical tensions and increased military spending, ethical concerns and calls for accountability are also intensifying.
Petitions to stop arming oppressive regimes and campaigns urging people to email their MPs are gaining momentum. Oxfam UK’s Stop Arming Israel petition has attracted over 25,000 signatures. In a message to the new trade secretary and foreign secretary, Oxfam UK states:
“We are urging you to immediately stop arms licences and exports to the Government of Israel. This is just one crucial step towards an immediate and permanent ceasefire for all Palestinians and Israelis.”
Others shared their disgust with companies profiting from war. “War is good for business for the “defence” contractors who the Financial Times report are “set to rake in record cash after orders soar”. Profiting from death, displacement. And genocide,” wrote the Irish peace activist Shannon Watch.
To reach hundreds of thousands of new readers and to make the biggest impact we can in the next general election, we need to grow our donor base substantially.
That’s why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward’s work.
We still need another 117 people to donate to hit the target. You can help. Donate today.
