The World Spent 1.5 Trillion in Military Spending

**Lambo** · 06-08-2009 12:36 PM

Military spending sets new record
By Jorn Madslien
Business reporter, BBC News

Apache Helicopter
The value of military hardware manufacturers has soared.

Global military spending rose 4% in 2008 to a record $1,464bn (£914bn) - up 45% since 1999, according to the Stockholm-based peace institute Sipri.

In contrast with civilian aerospace and airlines, the defence industry remains healthy.

"The global financial crisis has yet to have an impact on major arms companies' revenues, profits and order backlogs," Sipri said.

Peace-keeping operations - which also benefit defence firms - rose 11%.

Missions were launched in trouble spots such as Darfur and the Democratic Republic of the Congo.

"Another record was set, with the total of international peace operation personnel reaching 187,586," said Sipri, or Stockholm International Peace Research Institute.

Growth industry

As the world's aerospace and defence industry prepares for next week's Paris air show centenary, it seems much of the focus is set to shift away from troubled civilian aircraft makers, which are struggling with reduced orders from recession-hit airlines, towards the companies that make fighter jets and other military hardware.

The top 10 global arms producers
Eurofighter Typhoon
Boeing $30.5bn
BAE Systems $29.9bn
Lockheed Martin $29.4bn
Northrop Grumman$24.6bn
General Dynamics $21.5bn
Raytheon $19.5bn
EADS (West Europe) $13.1bn
L-3 Communications $11.2bn
Finmeccanica $9.9bn
Thales $9.4bn
Source: Sipri

The purchasing power of peace
Source: Sipri. All figures from 2007.

In total, the 100 leading defence manufacturers sold arms worth $347bn during 2007, the most recent year for which reliable data are available.

Almost all the companies were American or European. Some 61% of the total was accounted for by 44 US companies, with 32 West European companies accounting for a further 31%. Other companies were Russian, Japanese, Israeli and Indian.

"Since 2002, the value of the top 100 arms sales has increased by 37% in real terms," Sipri said. "The US presidency of George W Bush... was a period of continuity in the arms industry. This followed a period of consolidation in the 1990s and early 2000s."

The US aerospace and defence giant Boeing remains the world's largest, with arms sales of $30.5bn during 2007. The UK's BAE Systems ranked a close second, with arms sales of $29.9bn, while Lockheed Martin was third with $29.4bn in sales.

BBC NEWS | Business | Military spending sets new record

**The Stealthy One** · 06-08-2009 12:50 PM

Don't look for this trend to continue. The defense sector's revenue is under intense downward pressure in consideration of the U.S. government's planned pullback in spending. I am very bearish on defense right now.

**Lambo** · 06-09-2009 05:51 AM

hmmm maybe for the u.s. which drives roughly about 600 bn of the total, but what about other countries who will slowly increase their spending?

**PsiPro** · 06-09-2009 08:59 AM

Originally Posted by Lambo

hmmm maybe for the u.s. which drives roughly about 600 bn of the total, but what about other countries who will slowly increase their spending?

Everyone will slowly increase there spending, the question is will be beat inflation and be a good investment.

If your in it for the short term(1-5years or so) I would head for another market that has taken a hard hit. If you are in it for the long term, countries are never going to stop spending money on bullets.