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WASHINGTON, Feb. 28 (UPI) -- U.S. defense manufacturers and exporters maintained their global lead in the latest tally of international arms market deals recorded by the Stockholm International Peace Research Institute. The SIPRI report, however, doesn't include Chinese arms supplies worldwide and has only partial data on Russian arms manufacturers who are seeking to replace U.S. firms in Latin American and other regional arms markets.
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SIPRI arms market data also indicated that Brazilian defense manufacturer Embraer had a long way to go to challenge U.S. and European dominance of the markets.
Despite those figures, however, Embraer and Brazil's government are pouring billions of dollars of investment into developing the Latin American nation's aviation and defense manufacturing and export potential.
The Swedish state, which funds nearly half of SIPRI's research and data compilation activities, is itself in the race to become the pre-eminent supplier of new fighter jets to Brazil, though no decision has been reached yet. Brazil's multibillion-dollar FX-2 fighter competition has drawn competing bids from the Boeing Co., France's Dassault Aviation and Sweden's Saab aircraft manufacturers.
SIPRI data indicated that despite concerns that a global economic downturn could dampen demand for aviation and defense equipment, arms sales maintained an upward trend in 2010.
The rise was slower than in 2009 -- only about 1 percent -- and questions remain about Chinese and Russian arms but the Top 100 manufacturers and exporters sold weapons and services worth $411.1 billion through 2010, SIPRI said.
That sales total contrasts with contraction in many other industrial sectors worldwide since the economic downturn began in 2008.
Arms-producing and military services companies from North America and Europe dominated the list. Sales by the 44 U.S. companies accounted for more than 60 percent of all arms sales by the Top 100 arms-producing companies in 2010. The 30 companies from Western Europe accounted for a further 29 percent.
The global arms industry continues to be highly concentrated, with the Top 10 arms-producing companies accounting for 56 percent -- $230 billion -- of total Top 100 arms sales, SIPRI said.
"The data for 2010 (demonstrate), once again, the major players' ability to continue selling arms and military services despite the financial crises currently affecting other industries," SIPRI arms industry expert Susan Jackson said.
Oshkosh Corp. had a 156 percent increase in arms sales in 2010 after winning the MRAP all-terrain vehicles contract.
In other cases, change was likely not due to the financial crisis but rather because of the withdrawal of foreign troops from Iraq and the subsequent expected decrease in related equipment sales.
Company acquisitions and consolidation strengthened the position of the Top 100 arms producers.
SIPRI defines arms as "sales of military goods and services to military customers, including both sales for domestic procurement and sales for export."
