A new report by Stockholm International Peace Research Institute (SIPRI) has revealed that global arms sales have continued to rise despite supply chain issues that held up shipments of critical components.

Released by SIPRI on Monday, the report detailed that Sales of arms and military services by the world’s 100 biggest defence companies rose 1.9 per cent to $592 billion in 2021.

The increase makes this the seventh year in a row that global arms sales have increased, according to the report.

The report was developed using open-source data that included financial statements and other details about businesses that produce weapons and provide military services.

According to SIPRI, supply chain problems hampered arms trade in 2021 and were likely to worsen as a result of the ongoing Russia-Ukraine conflict.

The report detailed that 40 U.S. firms on the list had combined revenues of $299 billion in 2021, dominating the list. 

However, sales were significantly lower in real terms due to high inflation.

It further explained that Russia was a large source of the raw materials required to produce weaponry for western countries and that Russia’s invasion of Ukraine in February exacerbated supply chain issues for arms businesses worldwide.

However, sanctions related to the war make it difficult for manufacturers in Russia to get semiconductors and be paid for their deliveries, which has an impact on the country’s production, which is rising due to the conflict.

Speaking on the data, Lucie Béraud-Sudreau, the director of the SIPRI Military Expenditure and Arms Production Programme, explained that arms sales would have grown more than they did without the challenges faced by the supply chain.

“We might have expected even greater growth in arms sales in 2021 without persistent supply chain issues,” Mr Béraud-Sudreau said. “Both larger and smaller arms companies said that the year had a negative impact on their sales. A number of businesses, including General Dynamics and Airbus, also cited a labour shortfall.”