Where Does Money From Weapons Sales Go

There was a 1.ane percent increase in global military spending in 2017, co-ordinate to the Stockholm International Peace Inquiry Institute.

The global rise was driven partially by a $nine.vi billion hike in U.S. arms expenditure – the United states of america is the world's largest defence spender by a wide margin. Though it is yet unclear what the growing arms investments volition hateful for international relations, major defense contractors around the globe stand to benefit.

Total arms sales among the world's 100 largest defence force contractors topped $398 billion in 2017 later climbing for the tertiary consecutive year. Notably, Russia, 1 of the countries with the fastest growing militaries over the terminal decade, became the 2nd largest arms-producing country, overtaking the United kingdom of great britain and northern ireland for the first time since 2002. The United States' position as the acme arms-producing nation in the world remains unchanged, and for now unchallenged.

The Usa is abode to five of the world's x largest defense contractors, and American companies account for 57 percent of total arms sales by the world'southward 100 largest defense contractors, based on SIPRI data.

Maryland-based Lockheed Martin, the largest defence force contractor in the globe, is estimated to take had $44.9 billion in arms sales in 2017 through deals with governments all over the globe. The company drew public scrutiny after a bomb it sold to Kingdom of saudi arabia was dropped on a school bus in Republic of yemen, killing 40 boys and 11 adults. Lockheed'southward revenue from the U.S. government lonely is well more than the full annual budgets of the IRS and the Environmental Protection Agency, combined.

24/7 Wall St. reviewed data provided past the Stockholm International Peace Research Institute to identify the companies profiting most from war. Companies were ranked based on arms auction revenue. Chinese companies were not considered due to lack of sufficient data. Total 2017 acquirement and artillery sales were provided by SIPRI. Profits and total sales came from financial year 2017 almanac financial disclosures filed with the U.South. Securities and Exchange Commission or published independently. Employee counts are the most recent available estimates, and are in some cases from corporations' 2018 financial disclosures.

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20. Textron

• Land: United states
• Arms sales: $four.1 billion
• Total sales: $fourteen.2 billion
• Profit: $1.2 billion
• Employees: 35,000

Textron, based in Providence, Rhode Island, is one of 11 American companies to rank among the world's largest defence force contractors. The company ranks 20th amid companies profiting the most from state of war in 2017 with $4 billion in arms sales through its subsidiaries, which include Bell Helicopter and Textron Systems.Though the majority of Textron's revenue comes from deals in the United States and Canada, the visitor also does business in the Eye E, Asia, and Europe. Textron defence force products include armored vehicles, unmanned aircraft, and attack helicopters.

While it is 1 of the largest defence companies in the globe, over 70 percent of Textron's revenue comes from commercial deals. The company's not-military subsidiary shipping brands include Cessna and Beechcraft.

19. Naval Group

• Land: French republic
• Arms sales: $iv.1 billion
• Total sales: $4.ii billion
• Profit: $36.5 million
• Employees: 13,429

French industrial conglomerate Naval Group sold $4.1 billion worth of arms in 2017, among the most of whatsoever company worldwide. One of the oldest companies on this list, Naval Group'due south concern activities date back to the early 17th century, when the group built the French Navy'southward Mediterranean and Atlantic fleets. Today, Naval Group is the leading provider of naval defense systems in Europe.

Some of the major innovations throughout the company'south history include the launch of La Gloire, the beginning ironclad steam frigate, in 1858, and the launch of Le Redoutable, the first ballistic nuclear submarine, in 1967. In contempo years, some of the company'due south well-nigh lucrative contract work has included the commitment of the FREMM Tahya Misr frigate to the Egyptian Navy, completed in 2015, and a commitment to build 12 submarines for the Royal Australian Navy, awarded in 2016.

xviii. Leidos

• Country: United States
• Arms sales: $4.4 billion
• Total sales: $x.2 billion
• Turn a profit: $242.0 1000000
• Employees: 31,000

Nearly half of the $10.2 billion in acquirement of Virginia-based technology visitor Leidos in 2017 came from its defence and intelligence sectionalisation. The company's services include IT infrastructure, data analytics, cyber security, logistics, surveillance vehicle and equipment development and maintenance, and consulting. Its defense clients include the U.Due south. Air Force, Regular army, Navy, and NATO.

Though the majority of the company'south revenue comes from contracts outside of the defense industry, the visitor'southward history with the federal authorities goes back nigh to its founding in 1969. The following year, Leidos won a contract with the Defense force Nuclear Agency, at present known as the Defence force Threat Reduction Agency.

17. Rolls-Royce

• Country: United Kingdom
• Arms sales: $4.4 billion
• Total sales: $19.3 billion
• Turn a profit: $v.3 billion
• Employees: 50,000

Rolls-Royce Holdings is separate from Rolls-Royce Motor Cars, the luxury automobile manufacturer, having sold the Rolls-Royce make name and logo to German group BMW in 1998. While Rolls-Royce Holdings sold $4.iv billion worth of armed services products and services in 2017 – making information technology the 17th largest defense force contractor in the earth – weapons manufacturing accounts for a relatively small share of the visitor's full revenue. Today, the largest share Rolls-Royce Holdings' acquirement comes from civil aerospace, followed by power systems, defense aerospace, marine, and nuclear engineering science.

Some of Rolls-Royce'southward major defense contracts in 2017 included renewals with the U.S. Department of Defence force for supporting approximately iii,000 engines on shipping such as the C-130 Hercules and T-45 Goshawk, and engine orders from the Japanese Self-Defense Forcefulness for its new V-22 Osprey fleet.

xvi. Honeywell International

• Country: United States
• Arms sales: $4.five billion
• Total sales: $40.5 billion
• Profit: $1.7 billion
• Employees: 114,000

New Jersey-based Honeywell International sells its software and consulting services in a range of industries, including wellness care, oil and gas, manufacturing, and industrials. In add-on, defense contracts accounted for virtually 11 per centum of the company's 2017 revenue. For decades, Honeywell has had a contract with the U.Southward. Ground forces to develop longer range weapons systems, operating systems for unmanned aeriform vehicles, and missile navigation systems. The company has as well manufactured over vi,000 T55 engines, which the Army uses in its iconic heavy-lift Chinook helicopter. The company has an ongoing partnership with the Army for maintaining and overhauling the engines.

Honeywell has defense contracts with foreign governments as well, inking a bargain with the U.Thousand. in 2016 to install navigation systems in the British Army's AJAX armored fighting vehicles.

fifteen. United Shipbuilding Corp.

• Country: Russia
• Arms sales: $5.0 billion
• Total sales: $5.half dozen billion
• Profit: $101.0 million
• Employees: 80,000

The United Shipbuilding Corporation was established in March 2007 in accord with a decree from Russian President Vladimir Putin. The state-endemic defence contractor sold $5.0 billion worth of artillery in 2017, the 3rd most of whatsoever Russian visitor and amongst the well-nigh of any worldwide. Artillery sales deemed for 89 percent of USC'southward total acquirement for the twelvemonth.

In July 2014, USC was added to a list of companies banned from doing business concern in the Us past the U.S. Department of the Treasury. The sanctions were imposed in response to Russia'southward continued support for separatists in eastern Ukraine.

14. United Shipping Corp.

• Country: Russia
• Arms sales: $six.4 billion
• Total sales: $7.7 billion
• Profit: $325.3 million
• Employees: 98,000

Since the breakup of the Soviet Wedlock in 1991, Russia has been transitioning to a privatized economic system. The defense industry, however, remains almost entirely state-endemic. The United Aircraft Corporation was established past decree of Russian President Vladimir Putin in early on 2006. While the company manufactures ceremonious and special purpose aircraft, over lxxx percent of its $7.7 billion in revenue in 2017 came from artillery sales. UAC's military shipping include MiG, Sukhoi, and Yak fighter jets. Though based in Russia, UAC has partners in India and Italia.

13. Huntington Ingalls Industries

• Country: U.s.a.
• Arms sales: $6.5 billion
• Total sales: $seven.4 billion
• Turn a profit: $479.0 million
• Employees: 38,000

Shipbuilder Huntington Ingalls Industries of Newport News, Virginia, is the sole manufacturer of nuclear-powered aircraft carriers in the United states and is responsible for 70 percent of the U.S. Navy'due south current marine fleet. According to SIPRI, HII brought in $vi.5 billion in defence revenue in 2017, the eighth most of whatsoever U.S. visitor and 13th nigh worldwide. Some of the major contracts awarded to HII in 2017 included upgrades the Arleigh Burke-class guided missile destroyer Jack H. Lucas, development on the U.S. Navy's new Columbia-grade submarines, and providing radioactive waste cleanup services at the Los Alamos National Laboratory in New Mexico.

In addition to manufacturing nuclear-powered shipping carriers and submarines, surface combatants, amphibious set on and transport vehicles, and Coast Guard Cutters, HII offers technical solutions services in such fields as information technology and oil and gas engineering. Non-defence related activities accounted for 13 pct of HII revenue in 2017.

12. Fifty-three Technologies

• Country: United States
• Artillery sales: $vii.8 billion
• Total sales: $9.eight billion
• Profit: $693.0 meg
• Employees: 31,000

Fifty-3 Communications inverse its proper name to L-three Technologies on December. 31, 2016. The $7.viii billion in artillery sales the company fabricated in 2017, co-ordinate to SIPRI estimates, was effectively unchanged from the previous year. The company's operations include intelligence, surveillance, and reconnaissance products and services in the Us, Canada, Europe, and Australia. The visitor'due south communication technology is integrated to the Predator and Global Hawk drones and is used in U.South. Army communication infrastructure. 50-three too designs power distribution systems and communication technology used by the U.S. Navy's Virginia-grade submarine.

in 2017, contracts with foreign governments totaled $1.4 billion in sales, a fraction of the $half-dozen.3 billion in contracts L-3 had with the Department of Defence.

11. United Technologies Corp.

• Country: United States
• Artillery sales: $7.viii billion
• Total sales: $59.8 billion
• Profit: $4.nine billion
• Employees: 240,000

Largely through its subsidiary brands Collins Aerospace and Pratt & Whitney, United Technologies is one of the largest defense contractors in the world. Collins Aerospace designs and sells advanced systems for military helicopters, including rescue hoists, autopilot systems, and light amplification by stimulated emission of radiation guided weapon warning systems. Pratt & Whitney designs and articles engines currently in employ by 34 militaries worldwide. In the U.S. war machine, the F-22 Raptor, F-16, and F-xv fighter jets, too as the C-17 Globemaster 3, are just a few of examples of military aircraft powered by Pratt & Whitney engines.

In late 2018, United Technologies appear plans to split up into three independent companies. The visitor's defense division volition remain under the United Technologies proper name, while the Otis Elevator Visitor and Carrier HVAC visitor will interruption off as independent entities.

x. Almaz-Antey

• State: Russia
• Arms sales: $viii.6 billion
• Total sales: $9.one billion
• Profit: $422.6 million
• Employees: 129,000

Established in 2002 nether the direction of Russian President Vladimir Putin, Almaz-Antey is the largest known country-owned defense contractor, equally measured past revenue, in the world. Almaz-Antey primarily articles surface-to-air missile systems for use by the Russian military. Due to increasing domestic and foreign demand, Almaz-Antey'southward arm sales rose 17 percent from 2016 to 2017, i of the largest increases of any defense company. The Moscow-based contractor had $viii.half dozen billion in artillery sales in 2017, co-ordinate to SIPRI. This was the nearly of whatever Russian visitor and the tenth about worldwide – the highest position occupied by a Russian visitor since SIPRI began tracking international arms sales.

In July 2014, Almaz-Antey was added to a listing of companies banned from doing business with the The states by the U.Southward. Department of the Treasury. The sanctions were imposed against the visitor for its involvement in Russia's continued back up for separatists in eastern Ukraine and occupation of Crimea.

ix. Leonardo

• Country: Italy
• Artillery sales: $viii.nine billion
• Full sales: $thirteen.0 billion
• Profit: $310.three meg
• Employees: 45,134

Named after the Tuscany-built-in Renaissance man, Leonardo is the but Italian company to rank amongst the world's largest defense force contractors. The visitor has products and services in multiple branches of defense, including land and naval electronics, information systems, helicopters, jet aircraft, and unmanned aeriform vehicles. Leonardo as well articles weapons systems, torpedoes, and ammunition for naval and land artillery. Leonardo products and services are used in 150 countries. After Italia, the visitor's largest customers are the U.K., U.Southward., and Poland.

8. Thales

• Country: French republic
• Arms sales: $9.0 billion
• Total sales: $17.8 billion
• Profit: $931.1 million
• Employees: 65,000

This Paris-based contractor, which offers products and services in land, air, ocean, and cyber defence, went from the globe's ninth largest defense contractor in 2016 to 8th largest in 2017 after its total arms sales jumped 7 per centum from $8.4 billion to $9.0 billion. Late terminal year, the company announced a deal with the French Navy to install 7 new radar systems on frigates for missile burn control. When released, 2018's figures may prove even more than growth for the company. Equally of the first quarter of 2018, the value of all orders increased 34 percent from the beginning quarter of 2017.

7. Airbus Group

• Country: Trans-European
• Arms sales: $11.3 billion
• Total sales: $75.ii billion
• Turn a profit: $iii.3 billion
• Employees: 133,671

Though the company's primary business is in commercial and individual aircraft, Airbus is the second largest defence force contractor in Europe. Airbus has taken orders for over 600 of its Eurofighter Draft jet from a number of countries, including Austria, Saudi arabia, Kuwait, and Qatar. The company has too taken hundreds of orders for its A400M and C295 transport aircraft. Airbus makes secure communication devices for a client list that includes NATO and the French Navy. Like many other companies on this listing, Airbus is involved in cybersecurity and has worked with defense force departments of countries beyond Europe to protect vulnerable systems from cyber threats.

six. General Dynamics Corp.

• Land: United States
• Arms sales: $nineteen.5 billion
• Total sales: $31.0 billion
• Profit: $2.ix billion
• Employees:105,600

Incorporated in 1952, General Dynamics has sold a broad range of armaments, including missiles, warships, submarines, and rockets to all branches of the U.S. war machine since its beginning. In 2017, the Falls Church, Virginia, contractor sold $nineteen.five billion worth of arms, the 5th nearly of any U.S. company and the sixth most of any company worldwide. In 2017, the company received a $5.1 billion contract to blueprint and develop a prototype of the Columbia-class submarine and delivered the latest iteration of the Abrams tank to the U.S. Army. GD is also the visitor behind the new Arleigh Burke-grade Destroyer and Zumwalt-class guided-missile destroyer, adult and built at its plant in Bath, Maine. Like a number of other companies on this list, GD likewise provides communications, IT, and cyber security products and services.

5. Northrop Grumman Corp.

• Country: U.s.a.
• Artillery sales: $22.four billion
• Full sales: $25.eight billion
• Profit: $two.0 billion
• Employees: 85,000

The visitor now known as Northrop Grumman was founded in Hawthorne, California, in 1939. The visitor built its outset aircraft, the N-3PB patrol bomber, for the Norwegian Air Force in 1940, and it has since expanded into four primary business organisation sectors: aerospace systems, innovation systems, mission systems, and engineering services. Northrop Grumman pioneered the Flight Wing concept – an shipping with no tail or definitive fuselage in which nigh of the crew, payload, and equipment is situated in the main fly structure – and incorporated the technology in its B-ii stealth bomber line.

Co-ordinate to SIPRI, Northrop Grumman made $22.4 billion in arms sales in 2017, the fourth well-nigh of whatsoever company in the Us and the fifth most of any company worldwide. Some of the major contracts won by Northrop Grumman in 2017 include a $750 1000000 bargain to provide maintenance services for the U.S. Army's Special Electronic Mission Aircraft fleet and a $265 million deal to provide maintenance and logistics support for the U.S. Air Forcefulness'south Battlefield Airborne Communications Node organization.

four. BAE Systems

• Land: United kingdom
• Arms sales: $22.nine billion
• Full sales: $23.5 billion
• Profit: $one.1 billion
• Employees: 83,200

BAE Systems is the largest defence force contractor based in the United Kingdom, and the fourth largest in the earth. The company builds footing combat vehicles – including the Challenger ii, the main battle tank for both the British Ground forces and Majestic Army of Sultanate of oman – for different situations and clients. The company is likewise in the early years of a decade-long contract with the U.K.'s Imperial Air Force to back up its fleet of Typhoon fighter jets, and it is assisting in the continued development of the F-35 fighter jet in a partnership with U.Southward. companies Northrop Grumman and Lockheed Martin.

While many other companies on this list too accept a lucrative deals with private and commercial clients, 98 pct of BAE Systems' 2017 revenue came from arms deals.

3. Raytheon

• Country: United States
• Arms sales: $23.nine billion
• Total sales: $25.3 billion
• Turn a profit: $2.0 billion
• Employees: 67,000

The third largest defense contractor in the world, Raytheon is a missile defense and long-range precision weapons maker headquartered in Waltham, Massachusetts. Through customers in over 80 countries, the company reported $25.3 billion in revenue in 2017, 94 percentage of which came from arms sales and defense contracts. The United States and many of its allies rely on the company'due south radars and ballistic missile interceptors as part of their defense strategy. Raytheon also makes a wide range of air-to-surface, surface-to-air, air-to-air, and surface-to-surface precision guided missiles, in addition to bombs, torpedoes, and tactical small-scale-arms sights.

ii. Boeing

• Land: United States
• Arms sales: $26.nine billion
• Total sales: $93.4 billion
• Profit: $8.2 billion
• Employees: 153,000

Boeing made $26.ix billion in artillery sales in 2017, co-ordinate to SIPRI, the second most of any company worldwide. Defense contracts accounted for 29 per centum of Boeing'due south revenue, a far smaller share than most companies amongst world'southward ten largest military contractors. A bulk of Boeing's revenue comes from commercial aircraft such as the 737, 747, 767, 777, and 787 families. In 2017, Boeing completed 763 commercial aircraft deliveries – an industry record – and won over 900 orders to grow its society backlog to a total of 5,864 airplanes.

Boeing won in 2017 the start international order, from Nihon, of a KC-46 aerial refueling aircraft, whose design is based on the commercial 767 airplane. Other major defense contracts and continuations of previous contracts won past Boeing in 2017 include the manufacturing of 27 P-8 Poseidon aircraft, 36 advanced F-15 fighters, and 268 Apache helicopters.

1. Lockheed Martin Corp.

• Country: U.s.
• Arms sales: $44.9 billion
• Total sales: $51.0 billion
• Profit: $two.0 billion
• Employees: 105,000

Lockheed Martin is past far the largest defence contractor in the world. In 2017, the Bethesda, Maryland, company made $44.nine billion in artillery and defense force contracts, nearly twice the amount of arms sales at Boeing, the second largest defense contractor. The visitor makes a wide range of military shipping, including the F-16, F-22, and F-35 fighter jets, as well as sonar technologies, ships, missile defense systems, and missiles used by the Navy. More than than $35 billion of Lockheed Martin'south arm sales in 2017 came from the U.S. government, more than the unabridged upkeep of the Internal Revenue Service and Environmental Protection Agency combined.

Net sales are expected to take climbed fifty-fifty higher in fiscal 2018. In late 2018, the company was awarded a $22.7 billion contract for 106 F-35 fighter jets for the U.S. armed forces and another 89 for marry nations.

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Source: https://www.usatoday.com/story/money/2019/02/21/military-spending-defense-contractors-profiting-from-war-weapons-sales/39092315/

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