World's Top Military Contractors

For 2008, countries around the world spent $1.5 trillion on weapons, vehicles and intelligence and reconnaissance services, according to a Monday report from the Stockholm International Peace Research Institute, or Sipri. The amount represented a 4% increase from 2007.

The year “saw increasing threats to security, stability and peace in nearly every corner of the globe,” the Swedish group said in a statement. “The effects of the global financial crisis will be likely to exacerbate these challenges as governments and nongovernmental organizations struggle to respond effectively.”

The United States accounted for about 58% of the global increase between 1999 and 2008, with spending up about $219 billion in constant 2005 prices over the period, Sipri said. At a far distance followed China and Russia, with absolute increases of $42 billion and $24 billion, respectively.

A look at the top 10 arms spenders and top 10 arms producers in the world, according to estimates by the Stockholm International Peace Research Institute:

Top 10 military spenders 2008 (US$, billions)

• 1. United States 607
• 2. China 84.9
• 3. France 65.7
• 4. United Kingdom 65.3
• 5. Russia 58.6
• 6. Germany 46.8
• 7. Japan 46.3
• 8. Italy 40.6
• 9. Saudi Arabia 38.2
• 10. India 30.0

Top 10 arms producers 2007, according to sales (US$, billions)

• 1. Boeing (US) 30.5
• 2. BAE Systems (UK) 29.9
• 3. Lockheed Martin (US) 29.4
• 4. Northrop Grumman (US) 24.6
• 5. General Dynamics (US) 21.5
• 6. Raytheon (US) 19.5
• 7. EADS (West Europe) 13.1
• 8. L-3 Communications (US) 11.2
• 9. Finmeccanica (Italy) 9.9
• 10. Thales (France) 9.4

It’s an environment that’s been benefiting U.S. and European military contractors alike, particularly those that supply manned and unmanned aircraft, armored vehicles and surveillance and support services.

The same five companies have appeared at the top of Sipri’s Top 100 list since 2002.

With the U.S. wars in Iraq and Afghanistan, sales of armored vehicles have soared, particularly for mine resistant ambush-protected vehicles, or MRAPs, that help protect soldiers against roadside bombs.

Source: Global Military Spending Hits a Record in 2008

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