I. Key developments in the main arms-producing countries, 2011–12

Chapter:

4. Arms production and military services

Source:

SIPRI Yearbook 2013

Author(s):

Susan T. Jackson

The economic downturn following the 2008 global financial crisis and the subsequent austerity measures imposed in North America and Western Europe began to have an impact on sales in the world's arms industry in 2011–12. However, the impact on the industry was not uniform, with varied results for individual company.¹ For example, the withdrawal of United States forces from Iraq has had different impacts on sales in different sectors of the arms and military services industry; the largest impact has been in the armoured vehicles and logistics sectors. While the USA remains the largest market for arms and military services, ongoing debates about budget cuts continue to generate uncertainty in that market as well as elsewhere as many of the top arms-producing and military services companies rely on and look to the US market for sales.² In the context of decreasing military spending—despite the continuing high levels of US military spending on weapons—governments and arms-producing and military services companies in North America and Western Europe are pushing for export markets in Asia, Latin America and the Middle East.