Why everyone in arms industry loves a good war

While Russia’s invasion of Ukraine has hit most sectors, weapons makers have seen their stocks soar as they experiment with new tech for delivering death

- Rudroneel.Ghosh timesgroup.com

In its ninth month the Ukraine war has entered a risky and unpredictable phase. Russia has not only resumed attacks on multiple Ukrainian cities including the capital Kyiv - that are away from the actual battlefield, but also mused about tactical nuclear weapons.

In response, Ukraine's Western backers are further stepping up military assistance. On October 28, the US authorised another $275 million-worth of arms, munitions and equipment for Ukraine. This brings the total American military assistance to $18.5 billion since the beginning of the Biden administration. In the days ahead, Ukraine is expected to receive bigger quantities of more sophisticated weapons, such as air-defence systems and hi-tech drones.

Rising Defence Spend With so much money for new orders, the global defence industry has hit a sweet spot. This is also because, as a March report by Janes points out, Russia's invasion of Ukraine has pushed up everyone's defence spending. Globally, the total spend will be a record $2.08 trillion this year, boosted by recent spending increases across Europe that has added $30.7 billion to its defence budgets this year, with 80% of this attributed to Germany.