The arms industry, also known as the defense industry or the arms trade, is a global industry which manufactures and sells weapons and military technology. It consists of a commercial industry involved in the research and development, engineering, production, and servicing of military material, equipment, and facilities. Arms-producing companies, also referred to as arms dealers, defence contractors, or as the military industry, produce arms for the armed forces of states and for civilians. Departments of government also operate in the arms industry, buying and selling weapons, munitions and other military items. An arsenal is a place where arms and ammunition - whether privately or publicly owned - are made, maintained and repaired, stored, or issued, in any combination. Products of the arms industry include guns, artillery, ammunition, missiles, military aircraft, military vehicles, ships, electronic systems, night-vision devices, holographic weapon sights, laser rangefinders, laser sights, hand grenades, landmines and more. The arms industry also provides other logistical and operational support.
The Stockholm International Peace Research Institute (SIPRI) estimated military expenditures as of 2012 at roughly $1.8 trillion. This represented a relative decline from 1990, when military expenditures made up 4% of world GDP. Part of the money goes to the procurement of military hardware and services from the military industry. The combined arms-sales of the top 100 largest arms-producing companies amounted to an estimated $395 billion in 2012 according to SIPRI. In 2004 over $30 billion were spent in the international arms-trade (a figure that excludes domestic sales of arms). According to SIPRI, the volume of international transfers of major weapons in 2010–14 was 16 per cent higher than in 2005–2009. The five biggest exporters in 2010–2014 were the United States, Russia, China, Germany and France, and the five biggest importers were India, Saudi Arabia, China, the United Arab Emirates and Pakistan.
Many industrialized countries have a domestic arms-industry to supply their own military forces. Some countries also have a substantial legal or illegal domestic trade in weapons for use by their own citizens, primarily for self-defence, hunting or sporting purposes. Illegal trade in small arms occurs in many countries and regions affected by political instability. The Small Arms Survey estimates that 875 million small arms circulate worldwide, produced by more than 1,000 companies from nearly 100 countries.
Governments award contracts to supply their country's military; such arms contracts can become of substantial political importance. The link between politics and the arms trade can result in the development of what U.S. President Dwight D. Eisenhower described in 1961 as a military-industrial complex, where the armed forces, commerce, and politics become closely linked, similarly to the European multilateral defence procurement. Various corporations, some publicly held, others private, bid for these contracts, which are often worth many billions of dollars. Sometimes, as with the contract for the international Joint Strike Fighter, a competitive tendering process takes place, with the decision made on the merits of the designs submitted by the companies involved. Other times, no bidding or competition takes place.
During the early modern period, France, United Kingdom, Netherlands and some states in Germany became self-sufficient in arms production, with diffusion and migration of skilled workers to more peripheral countries such as Portugal and Russia.
The modern arms industry emerged in the second half of the nineteenth century as a product of the creation and expansion of the first large military-industrial companies. As smaller countries (and even newly industrializing countries like Russia and Japan) could no longer produce cutting-edge military equipment with their indigenous resources and capacity, they increasingly began to contract the manufacture of military equipment, such as battleships, artillery pieces and rifles to foreign firms.
In 1854, the British government awarded a contract to the Elswick Ordnance Company of industrialist William Armstrong for the supply of his latest breech loading rifled artillery pieces. This galvanised the private sector into weapons production, with the surplus being increasingly exported to foreign countries. Armstrong became one of the first international arms dealers, selling his weapon systems to governments across the world from Brazil to Japan. In 1884, he opened a shipyard at Elswick to specialise in warship production—at the time, it was the only factory in the world that could build a battleship and arm it completely. The factory produced warships for many navies, including the Imperial Japanese Navy. Several Armstrong cruisers played an important role in defeating the Russian fleet at the Battle of Tsushima in 1905.
In the American Civil War in 1861 the North had a distinct advantage over the south as it relied on using the breech-loading rifle against the muskets of the south. This began the transition to industrially produced mechanised weapons such as the Gatling gun.
This industrial innovation in the defence industry was adopted by Prussia in 1866 & 1870-71 in its defeat of Austria and France respectively. By this time the machine gun had begun entering into the militaries. The first example of its effectiveness was in 1899 during the Boer War and in 1905 during the Russo-Japanese War. However, Germany were leaders in innovation of weapons and used this innovation nearly defeating the allies in World War I.
In 1885, France decided to capitalize on this increasingly lucrative form of trade and repealed its ban on weapon exports. The regulatory framework for the period up to the First World War was characterized by a laissez-faire policy that placed little obstruction in the way of weapons exports. Due to the carnage of World War I, arms traders began to be regarded with odium as "merchants of death" and were accused of having instigated and perpetuated the war in order to maximise their profits from arms sales. An inquiry into these allegations in Britain failed to find evidence to support them. However, the sea change in attitude about war more generally meant that governments began to control and regulate the trade themselves.
The volume of the arms trade greatly increased during the 20th century, and it began to be used as a political tool, especially during the Cold War where the United States and the USSR supplied weapons to their proxies across the world, particularly third world countries (see Nixon Doctrine).
This category includes everything from light arms to heavy artillery, and the majority of producers are small. Many are located in third world countries. International trade in handguns, machine guns, tanks, armored personnel carriers, and other relatively inexpensive weapons is substantial. There is relatively little regulation at the international level, and as a result, many weapons fall into the hands of organized crime, rebel forces, terrorists, or regimes under sanctions.
The Control Arms Campaign, founded by Amnesty International, Oxfam, and the International Action Network on Small Arms, estimated in 2003 that there are over 639 million small arms in circulation, and that over 1,135 companies based in more than 98 different countries manufacture small arms as well as their various components and ammunition.
Encompassing military aircraft (both land-based and naval aviation), conventional missiles, and military satellites, this is the most technologically advanced sector of the market. It is also the least competitive from an economic standpoint, with a handful of companies dominating the entire market. The top clients and major producers are virtually all located in the western world and Russia, with the United States easily in first place. Prominent aerospace firms include Rolls Royce, BAE, Dassault Aviation, Sukhoi, Mikoyan, EADS, Leonardo, Thales Group, Lockheed Martin, Northrop Grumman and Boeing. There are also several multinational consortia mostly involved in the manufacturing of fighter jets, such as the Eurofighter. The largest military contract in history, signed in October 2001, involved the development of the Joint Strike Fighter.
Some of the world's great powers maintain substantial naval forces to provide a global presence, with the largest nations possessing aircraft carriers, nuclear submarines and advanced anti-air defense systems. The vast majority of military ships are conventionally powered, but some are nuclear-powered. There is also a large global market in second-hand naval vessels, generally purchased by developing countries from Western governments.
The cybersecurity industry is becoming the most important defence industry as cyber attacks are being deemed as one of the greatest risk to defence in the next ten years as cited by the NATO review in 2013. Therefore, high levels of investment has been placed in the cybersecurity industry to produce new software to protect the ever-growing transition to digitally run hardware. For the military industry it is vital that protections are used for systems used for reconnaissance, surveillance and intelligence gathering. However, to protect the cyber world from attacks there are advanced cyber protection strategies used such as content, cloud and wireless security. These can be intertwined to form several secure layers.
Nevertheless, cyber attacks and cyber attackers have become more advanced in their field using techniques such as Dynamic Trojan Horse Network (DTHN) Internet Worm, Zero-Day Attack, and Stealth Bot. As a result, the cybersecurity industry has had to improve the defence technologies to remove any vulnerability to cyber attacks using systems such as the Security of Information (SIM), Next-Generation Firewalls (NGFWs) and DDoS techniques.
As the threat to computers grows, the demand for cyber protection will rise, resulting in the growth of the cybersecurity industry. It is expected that the industry will be dominated by the defence and homeland security agencies that will make up 40% of the industry.
According to research institute, SIPRI, the volume of international transfers of major weapons in 2010–14 was 16 per cent higher than in 2005–2009. The five biggest exporters in 2010–14 were the United States, the United Kingdom, Russia, China and France, and the five biggest importers were India, Saudi Arabia, China, the United Arab Emirates (UAE) and Pakistan. The flow of arms to Africa, the Americas, Asia and Oceania, and the Middle East increased significantly between 2005–2009 and 2010–14, while there was a notable decrease in the flow to Europe.
SIPRI has identified 60 countries as exporters of major weapons in 2010–14. The top 5 exporters during the period were responsible for almost 74 per cent of all arms exports. The composition of the five largest exporters of arms changed between 2005–2009 and 2010–14: while the United States and Russia remained by far the largest exporters, China narrowly, but notably, replaced Germany as the third largest exporter as Germany slid down to 6th place. The top 5 exported 14 per cent more arms in 2010–14 than the top 5 in 2005–2009.
In 2010–14, 153 countries (about three-quarters of all countries) imported major weapons. The top 5 recipients accounted for 33 per cent of the total arms imports during the period (see table 2). India, China and the UAE were among the top 5 importers in both 2005–2009 and 2010–14. Asia and Oceania accounted for nearly half of imports in 2010–14, followed by the Middle East, Europe, the Americas and Africa (see figure 3). SIPRI also identified seven groups of rebel forces as importers of major weapons in 2010–14, but none of them accounted for more than 0.02 per cent of total deliveries.
Units are in Trend Indicator Values expressed as millions of U.S. dollars at 1990s prices. These numbers may not represent real financial flows as prices for the underlying arms can be as low as zero in the case of military aid. The following are estimates from Stockholm International Peace Research Institute.
Note that rankings for exporters below a billion dollars are less meaningful, as they can be swayed by single contracts. A much more accurate picture of export volume, free from yearly fluctuations, is presented by 5-year moving averages.
Next to SIPRI there are several other sources that provide data on international transfers of arms. These include national reports by national governments about arms exports, the UN register on conventional arms and an annual publication by the U.S. Congressional Research Service that includes data on arms exports to developing countries as compiled by U.S. intelligence agencies. A list of such sources can be found at the SIPRI website. Due to the different methodologies and definitions used different sources often provide significantly different data.
SIPRI uses the "trend-indicator values" (TIV). These are based on the known unit production costs of weapons and represent the transfer of military resources rather than the financial value of the transfer.
(in billion TIV)
Units are in Trend Indicator Values expressed as millions of U.S. dollars at 1990s prices. These numbers may not represent real financial flows as prices for the underlying arms can be as low as zero in the case of military aid.
|3||United Arab Emirates||6,593|
Please note that arms import rankings fluctuate heavily as countries enter and exit wars. Export data tend to be less volatile as exporters tend to be more technologically advanced and have stable production flows. 5-year moving averages present a much more accurate picture of import volume, free from yearly fluctuations.
This is a list of the world's largest arms manufacturers and other military service companies who profit the most from the War economy, their origin is shown as well. The information is based on a list published by the Stockholm International Peace Research Institute for 2015. The list provided by the SIPRI excludes companies based in China.
|Rank||Company||Country||Arms sales (US$ m.)||Total sales (US$ m.)||Arms sales as a % of total sales||Total profit (US$ m.)||Total employment|
|1||Lockheed Martin||United States||36,440||46,132||79||3,605||126,000|
|3||BAE Systems||United Kingdom||25,510||27,355||93||1,456||82,500|
|5||Northrop Grumman||United States||20,060||23,256||86||1,990||65,000|
|6||General Dynamics||United States||19,240||31,469||61||2,965||99,900|
|8||United Technologies Corporation||United States||9,500||61,047||16||4,356||197,200|
|10||L3 Technologies||United States||8,770||10,466||84||282||38,000|
Arms control refers to international restrictions upon the development, production, stockpiling, proliferation and usage of small arms, conventional weapons, and weapons of mass destruction. It is typically exercised through the use of diplomacy, which seeks to persuade governments to accept such limitations through agreements and treaties, although it may also be forced upon non-consenting governments.
Six referendums were held in Switzerland during 1938. The first four were held on 20 February; the first on amending articles 107 and 116 of the constitution to make Romansch an official language, which was approved by over 90% of voters and all cantons. The second was on a popular initiative "on urgent federal resolutions and the protection of people's rights" and was rejected by 85% of voters. The third was on a popular initiative on the private arms industry, and was also rejected by a wide margin, whilst the fourth was on a counter-proposal to the arms industry question, and was approved by voters. The fifth referendum was held on 3 July on the penal code, and was approved. The sixth and final referendum of the year was held on 27 November on a federal resolution on the transient order of the federal budget, and was approved by 72% of voters.Arms industry in Romania
Before 1989, Romania was among the top ten arms exporters in the world, however its arms industry declined considerably during the 1990s. Exports fell from roughly $1 billion before 1989 to about $43 million in 2006, and the number of employees also fell from 220,000 in 1990 to 20,000 in 2009. Sales to the Romanian Armed Forces have plunged after Romania's accession to NATO in 2004, as factories continue to produce Warsaw Pact-caliber weapons and ammunition, which are incompatible with their Western counterparts. There have also been criticisms related to the quality of Romania's military products, due to the obsolescence of factory equipment and production methods. The Cugir weapons plant, for example, still uses some machinery dated from 1890.As of 2009, sales are roughly evenly divided between the Romanian state and foreign customers such as European Union and Arab countries such as Egypt, Algeria and Iraq. Other countries which have shown interest in Romanian equipment include Afghanistan, Israel, Switzerland, the United States, the United Arab Emirates, India, Georgia and a slew of African countries. There have been some signs of slight recovery, with exports reaching €141 million in 2009. However, the arms industry in Romania still lags behind neighboring countries such as Ukraine, Bulgaria and Serbia.In recent years, the Romanian government has called, unsuccessfully, for the lifting of the European Union arms embargo on the People's Republic of China.Arms trade
Arms trade may refer to:
the global markets for any product of the arms industry
Small arms trade
Illegal arms trade (arms trafficking)Bombardier Inc.
Bombardier Inc. (French pronunciation: [bɔ̃baʁdje]) is a multinational manufacturer of regional airliners, business jets, and equipment for public transport. Its aerospace division, Bombardier Aerospace, is headquartered in Montreal and its public transport division, Bombardier Transportation, is headquartered in Berlin.
The company manufactures the Bombardier CRJ700 series regional airliners as well as the Bombardier Global Express, the Bombardier Challenger 300, and the Bombardier Challenger 600 series business jets. Learjet is a subsidiary of Bombardier.
The company was founded as a manufacturer of snowmobiles; however, it sold that line of business in 2003.Cyber-arms industry
The cyber-arms industry is the markets and associated events surrounding the sale of software exploits, zero-days, cyberweaponry, surveillance technologies and related tools. The term may extend to both grey and black markets online and offline.For many years, the burgeoning dark web market remained niche, available only to those in-the-know or well funded. Since at least 2005, western governments including the U.S., United Kingdom, Russia, France, and Israel have been buying exploits from defence contractors and individual hackers. This 'legitimate' market for zero day exploits exists but is not well advertised or immediately accessible.
Attempts to openly sell zero day exploits to governments and security vendors to keep them off the black market have so far been unsuccessful.Defence industry of Pakistan
The defence industry of Pakistan, under the Ministry of Defence Production, was created in September 1951 to promote and coordinate the patchwork of military production facilities that have developed since independence. The ministry also includes seven other specialized organizations devoted to research and development, production, and administration.Pakistan Navy is supported mainly by a facility at the Karachi Shipyard, which has limited production capacity. In 1987 development of a submarine repair and rebuild facility at Port Qasim was begun. By early 2000, in a joint project with China led to the development of the JF-17 Thunder fighter and the Al-Khalid Tank. Pakistan also has taken major steps to becoming self-sufficient in aircraft overhaul, modernization and tank and helicopter sales and a transfer of technology with France led to the construction of the Agosta B-90 Submarine in the late 1990s and early 2000s and is currently participating in many joint production projects such as Al Khalid 2, advance trainer aircraft, combat aircraft, navy ships and submarines.Defense industry of Iran
Iran's military industry manufactures various types of arms and military equipment. According to Iranian officials, the country sold $100 million worth of military equipment in 2003. and as of 2006 had exported weapons to 57 countries. Iran's military industry, under the command of Iran's Ministry of Defense, is composed of the following main components:
Security of Telecommunication and Information Technology (STI) is also part of the Iranian defense industry.Defense industry of North Korea
North Korea's defense industry predates the Korean War, but has emerged as major a supplier to the North Korean armed forces beginning in the 1970s, but increasingly so after the fall of the Soviet Union and to supplement those purchased from China. Most equipment produced are copies of Soviet and Chinese built military hardware.Defense industry of Russia
The defense industry of Russia is a strategically important sector and a large employer in Russia. It is also a significant player in the global arms market, with Russian Federation being the second largest military products exported after the USA. Russia is the second largest conventional arms exporter after the United States, with $13.5 billion worth of exports in 2012. Combined, the US and Russia account for 58% of all major weapons exports.President Vladimir Putin considers the Syrian Civil War to be a good advertisement of the capabilities of Russian weapons capable of boosting Russia's military sales.Defense industry of Serbia
The defense industry of Serbia is the largest in the Western Balkans. For the 2016 calendar year, Serbia's export of weapons and military equipment was valued at $483 million (€435 million). It consist of around 200 companies working in many different fields but usual joined on larger projects under Yugoimport SDPR or Military Technical Institute Belgrade.
Defense companies in Serbia often use Technical Testing Center services for testing and developing new defense products. Universities and schools in Serbia also participate through various contract and education to Serbia defense industries.Hellenic Arms Industry
The Hellenic Arms Industry (Greek: Ελληνική Βιομηχανία Όπλων, Elliniki Viomichania Oplon, abbreviated EBO) has been the main arms manufacturer of Greece. Its creation is linked to a desire of Greek governments for "complete self-sufficiency" of Greece in the areas of personal and other weapons (in contrast to past experience when local manufacturers could only partially cover the needs of the Greek Armed Forces).Li Qiang (minister)
Li Qiang (Chinese: 李强; Wade–Giles: Li Ch'iang; 26 September 1905 – 29 September 1996) was a Chinese Communist revolutionary, telecommunications expert, military engineer, secret agent, and politician. He served as Minister of Foreign Trade from November 1973 to September 1981 and was an academician of the Chinese Academy of Sciences.
Born into a prominent family in Changshu, as a student in Shanghai he joined the Communist Party of China (CPC) during the May Thirtieth Movement in 1925, and became a key technical specialist in the early history of the CPC. After Chiang Kai-shek's Kuomintang (KMT) massacred the Communists in 1927, Li was recruited by Zhou Enlai as the communications head of Teke, the CPC's intelligence agency, and created the CPC's first underground radio station. After his close friend and colleague Gu Shunzhang defected to the KMT in 1931, Li was forced into exile in the Soviet Union, where he studied to become a radio expert and published a book on rhombic antenna.
During the Second Sino-Japanese War, Li established an arms industry in the CPC's rural base in Yan'an and headed the Yan'an Natural Science Institute. During the ensuing Chinese Civil War, he continued to oversee the CPC's arms industry and established a shortwave radio station for the Xinhua News Agency. After the founding of the People's Republic of China in 1949, Li served for three decades in the Ministry of Foreign Trade. As Vice-Minister, he played a major role in providing aid to North Vietnam during the Vietnam War and secretly visited the Ho Chi Minh trail. After becoming Minister of Foreign Trade in 1973, he signed hundreds of major deals to import Western technology and machinery and helped modernize China's economy.List of major arms industry corporations by country
This is an incomplete list of modern armament manufacturers
Santa Barbara EP
Astinave EPLord of War
Lord of War is a 2005 crime drama written, produced, and directed by Andrew Niccol, and co-produced by and starring Nicolas Cage. It was released in the United States on September 16, 2005, with the DVD following on January 17, 2006 and the Blu-ray Disc on July 27, 2006. Cage plays an illegal arms dealer, inspired by the stories of several real-life arms dealers and smugglers. The film was officially endorsed by the human rights group Amnesty International for highlighting the arms trafficking by the international arms industry.Państwowe Zakłady Inżynierii
The Państwowe Zakłady Inżynierii (National Engineering Works, PZInż) was a Polish pre-World War II arms industry holding and the main Polish manufacturer of vehicles, both military and civilian.STC Delta
The State Military Scientific-Technical Center “Delta” (SMSTC Delta) is a Georgian government-owned, autonomous R&D and production center for military and civilian hardware. Headquartered in Tbilisi, Delta was formed on the basis of six scientific research centers and production facilities, histories of which go back to the early 1940s under the former Georgian SSR.
Employing several thousand people, Delta is focused on research and development of new military projects, as well as the modernization and production of already established Soviet military hardware. Delta fell under the jurisdiction of the Georgian Ministry of Defense until March 2014, when the government passed the control over the enterprise to the Ministry of Economy and Sustainable Development of Georgia. However the centre was reinstituted to the Ministry of Defence soon afterwards.Tecmash
Tecmash (Russian: Техмаш) is a Russian arms industry company within the state-owned Rostec group producing and developing weapons, munitions, and ammunition for Armed Forces.TheRealDeal
TheRealDeal was a darknet website and a part of the cyber-arms industry reported to be selling code and zero-day software exploits.The creators claimed in an interview with DeepDotWeb that the site was founded in direct response to the number of dark websites which have emerged during the past few years which do not actually have anything of value to sell and are just scams. The site relied on Tor and bitcoin similar to other darknet markets but requires multi-signature transactions. There was speculation in the computer security community as to whether the site is a law enforcement sting operation due to apparent listing of exploits at many times below their potential market value.In July 2015 the website was down for 24 hours at the same time as cyber crime forum Darkode was seized by the FBI and various members arrested in 'Operation Shrouded Horizon'. On 13 August in 2015 the site went offline for unknown reasons. On December 1 it announced its reopening on DeepDotWeb. The Real Deal was shut down on November 2016.Weapon
A weapon, arm or armament is any device that can be used with intent to inflict damage or harm. Weapons are used to increase the efficacy and efficiency of activities such as hunting, crime, law enforcement, self-defense, and warfare. In broader context, weapons may be construed to include anything used to gain a tactical, strategic, material or mental advantage over an adversary or enemy target.
While ordinary objects – sticks, rocks, bottles, chairs, vehicles – can be used as weapons, many are expressly designed for the purpose; these range from simple implements such as clubs, axes and swords, to complicated modern firearms, tanks, intercontinental ballistic missiles, biological weapons, and cyberweapons. Something that has been re-purposed, converted, or enhanced to become a weapon of war is termed weaponized, such as a weaponized virus or weaponized laser.