Despite the high quality of their armaments and cloned troops, the Republic's war effort is initially hindered because most of the major industrial companies in the Galaxy have, under the aegis of the Techno Union, sided with the Confederacy. Eventually, though, the Republic becomes a humongous superpower not only economically but also militarily. The rapid militarization of the Republic during the Clone Wars, overseen by Supreme Chancellor Palpatine, has far reaching effects. The Confederacy wins most battles in the first year of the Clone Wars. During the second and middle year of the Clone Wars however, the Republic defends itself from Confederate attacks and retaliates with its own assaults, many of which are successful. During the third and final year of the Clone Wars, the Republic wins many offensive battles in the Mid Rim and pushes the Confederate forces back to the Outer Rim with its "Outer Rim Sieges" campaign.