STOCKHOLM: Sales by major arms makers were boosted last year by wars in Ukraine and Gaza and tensions in Asia, with marked increases for manufacturers based in Russia and the Middle East, a report said Monday.

Sales of arms and military services by the world’s 100 largest arms companies totalled $632 billion in 2023, up 4.2 percent, according to a report by the Stockholm International Peace Research Institute (SIPRI).

Revenues had dipped in 2022 as global weapons makers struggled to meet the increase in demand, but many of them managed to increase production last year, the authors of the report noted.

In a sign of this surge in demand, all 100 companies tracked achieved sales in excess of $1 billion last year for the first time.

“There was a marked rise in arms revenues in 2023, and this is likely to continue in 2024,” Lorenzo Scarazzato, a researcher with the SIPRI Military Expenditure and Arms Production, said in a statement.

Sales from the world’s top 100 arms companies “still did not fully reflect the scale of demand, and many companies have launched recruitment drives, suggesting they are optimistic about future sales,” Scarazzato added.

Smaller producers have been more effective in meeting the demand linked to the wars in Gaza and Ukraine, growing tensions in East Asia and rearmament programmes in other regions, the institute said.

“A lot of them specialise in either a component of something or build systems that require one set of supply chains,” allowing them to react more quickly, Nan Tian, Director of SIPRI’s Military Expenditure and Arms Production Programme, told AFP.

Among the leading producers, US companies recorded a 2.5 percent increase in their sales last year and still account for half the world’s arms revenues, with 41 US weapons producers in the world’s top 100.

Lockheed Martin and RTX (formerly Raytheon Technologies), the world’s two largest arms makers, on the other hand, reported a fall in revenue of 1.6 percent and 1.3 percent respectively.Such behemoths “often depend on complex, multi-tiered supply chains, which made them vulnerable to lingering supply chain challenges in 2023,” Tian said.