1. BAE Systems
Truly international, the 1st non-US company to head the Top 100
BAE Systems’ arms sales reached $32.4 billion in 2008. BAE Systems’ move to first place in the Top 100 is notable for a variety of reasons. It is a UK-based company, but its arms sales rely on production that takes place in a number of locations outside the UK, including a substantial presence in Australia, South Africa, Sweden and the USA. BAE Systems’ US presence is an example of the increasing internationalization of the arms industry as well as the attractiveness of the US market.
- The main reason that BAE became the largest arms-producing company in the world in 2008 is the increase in its US sales, which outpaced decreases elsewhere including in the UK.
- The company’s two largest operating groups (Electronics, Intelligence & Support and Land & Armaments) are headquartered in the USA and contributed 59 per cent of the company’s total sales in 2008.
- BAE generated a total of $17.3 billion in sales in the USA, compared with $6.25 billion generated in the UK and $10.5 billion generated elsewhere.
- BAE Systems is a major contractor to the US Department of Defense (DOD). In 2008 it ranked fourth in US DOD contract awards and was the only non-US company in the DOD’s top 10 contractors.
- Recent foreign acquisitions have contributed to BAE’s total sales, demonstrating the importance of the company’s presence in foreign markets. For example, its acquisition of Tenix has made BAE Systems the largest arms producer in Australia.
