Profits of war

The slogan "profits of war" refers to the monetary advantages that specific businesses and sectors may have during periods of armed conflict. Even if war causes terrible human suffering and devastation, certain people or organizations may be able to profit financially from it. Here are some concise explanations and illustrations of the fundamental idea:

Defense contractors are businesses that produce and provide military hardware, weaponry, and technology to the armed services. Defense spending rises during times of conflict, increasing demand for military supplies. Defense contractors win business and make money. An illustration would be the manufacture of fighter planes, missiles, and other military gear by firms like Lockheed Martin and Raytheon.

PMCs, or private military contractors: Armed security services, logistical support, and other military-related duties are provided by PMCs. They work in areas of conflict and aid governments or international organizations. PMCs can make money by providing their services during conflicts. As an illustration, Blackwater (now Academy) offered security services in Afghanistan and Iraq.

Natural resource firms: Conflicts may be sparked by the discovery of important natural resources like rare metals, minerals, or oil. Companies that extract or produce these resources stand to gain from rising prices and demand. For instance, during the Iraq War, oil corporations obtained contracts for oil exploration and production in Iraq.

Infrastructure and rebuilding firms: Following a conflict, a nation will need to invest heavily in reconstruction. Construction, infrastructure development, and post-war reconstruction businesses obtain contracts for jobs like constructing roads, hospitals, etc. Examples include companies engaged in the post-Iraq War infrastructure reconstruction of Iraq.

Companies that provide logistics and transportation are necessary during times of conflict to move troops, supplies, equipment, and humanitarian relief. Companies that offer these services in logistics and transportation see a rise in demand and make money.

Financial Institutions: Wars can lead to higher debt, currency volatility, and economic instability. In these circumstances, financial institutions profit by making loans, managing investments, or facilitating transactions. As an illustration, consider banks that make money by lending money to governments to pay for wars.


Even while the possibility for corporate profits is acknowledged, it is important to understand that the total effects of war on society and people far outweigh any financial advantages. Wars result in human misery, fatalities, displaced populations, and long-term economic effects. Seeking peaceful solutions and averting the devasting impacts of military war should be the main priorities.

We can provide you with some broad information based on historical precedents and recognized patterns, even if it is difficult to provide exact and current data and numbers on the profitability of war for corporate benefactors. It is crucial to keep in mind that the results may change based on the precise disputes and time periods examined. Here are some crucial details:

Défense Contractors:

The global arms industry is substantial and highly profitable. According to the Stockholm International Peace Research Institute (SIPRI), the world's top 100 arms-producing companies had total sales of $420 billion in 2019.

The United States is the largest arms producer and exporter, with companies like Lockheed Martin, Boeing, and Raytheon being major beneficiaries of defence contracts.

In 2020, the U.S. Department of Defence’s budget was approximately $740 billion, providing significant opportunities for defence contractors to secure contracts and generate profits.

Private Military Contractors (PMCs):

Figures on the profits of private military contractors are often difficult to obtain due to the secretive nature of their operations and contracts.

However, during the Iraq and Afghanistan wars, PMCs such as Blackwater (now known as Academy) received substantial contracts from the U.S. government for security and logistical support, earning billions of dollars in revenue.

Natural Resource Companies:

The profits of natural resource companies during wartime can vary greatly depending on the specific resources and conflicts involved.

In instances where access to oil or minerals is a major factor, companies involved in the extraction and production of these resources can benefit from increased demand and prices.

For example, during the Iraq War, several international oil companies secured contracts for oil exploration and production, potentially leading to substantial profits.

Reconstruction and Infrastructure Companies:

Estimating the exact profits of reconstruction and infrastructure companies can be challenging as it depends on the scale and duration of the conflict, as well as the specific projects undertaken.

For instance, after the 2003 Iraq War, billions of dollars were allocated for reconstruction projects, and companies involved in construction, engineering, and infrastructure development had opportunities to secure contracts and generate profits.

Logistics and Transportation Companies:

Figures on the profits of logistics and transportation companies during wartime are not readily available in the public domain.

However, increased demand for services such as shipping, trucking, cargo handling, and air transportation can create opportunities for these companies to generate higher revenues.


Financial Institutions:

Financial institutions can benefit from war-related activities in various ways, such as providing loans, managing investments, or facilitating transactions.

During times of economic instability caused by war, financial institutions can earn profits through increased lending, interest payments, and other financial services.

It's essential to approach these figures with caution, as the exact profits for each conflict and company can vary significantly based on numerous factors. Additionally, it is crucial to recognize that the human and societal costs of war cannot be quantified solely in terms of corporate profits. The consequences of armed conflicts extend far beyond financial gains and profoundly impact lives and communities.