Germany’s defense industry finds itself at the cusp of a new era of growth, yet simultaneously grappling with significant internal concerns, according to a recent survey conducted by strategy consultancy Horváth and reported by “Der Spiegel”. The poll, encompassing 73 executives and industry specialists, reveals a complex landscape of opportunity and challenge.
A substantial majority – 87% – of respondents believe the conflict in Ukraine has ushered in a new growth phase for the arms industry, predicting prolonged expansion that could last at least a decade even after the cessation of hostilities. However, the survey also highlights skepticism about the pace of modernization within Germany’s armed forces, with over two-thirds suggesting it will take more than ten years to achieve significant upgrades.
Internal doubts extend to the industry’s own capabilities, particularly regarding Europe’s potential for strategic independence in defense. Nearly half of those surveyed consider achieving true independence in armaments to be unrealistic. Furthermore, 31% express serious reservations about the progress being made on major European collaborative projects concerning air and land forces, citing discrepancies between industry perspectives and political directives as a primary obstacle.
The shortage of skilled labor presents another significant impediment. A considerable 59% of managers report experiencing or anticipating serious personnel deficits, making recruitment increasingly difficult, despite observing a growing acceptance of the defense industry within the general population. Compounding these difficulties, 94% of the surveyed defense experts believe the industry is inadequately prepared to rapidly scale up production, hampered by constraints in both personnel and supply chains.