Russia's full-scale invasion of Ukraine and geopolitical tensions around the world in 2022 have caused a massive increase in demand for weapons and military hardware. Many American and European arms companies have been unable to increase production capacity significantly and cannot keep up with demand.
Unlike the significant US and European suppliers, companies in Asia, Oceania, and the Middle East significantly increased their revenues from arms sales in 2022, demonstrating their ability to respond to growing demand in a shorter time frame. This was especially true in countries where firms maintained responsive, "always-hot" manufacturing capabilities; these include Israel and South Korea and countries where companies rely on short supply chains. This is stated in the Stockholm International Peace Research Institute (SIPRI) report.
