Armament in focus More and More Companies are Seizing Opportunities in the Defence Sector

Source: dpa | Translated by AI 1 min Reading Time

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German industry players are increasingly orienting themselves towards armament production, according to an analysis by the German Chamber of Industry and Commerce (DIHK).

Opportunities for balance? Armaments are currently in high demand. At the same time, previously lucrative civilian industrial sectors are weakening. This virtually compels German companies to try their hand at armaments, according to a DIHK survey ...(Source:  Bundeswehr)
Opportunities for balance? Armaments are currently in high demand. At the same time, previously lucrative civilian industrial sectors are weakening. This virtually compels German companies to try their hand at armaments, according to a DIHK survey ...
(Source: Bundeswehr)

As the results of a survey available to Wirtschaftswoche show, almost one-third of the surveyed industrial companies currently believe that they have opportunities for their own business model in the security and defence industry. The survey thus reflects how positive the prospects are regarding the topic of defence. "This is simply a consequence of geopolitical conflicts," commented DIHK expert Rainer Kambeck on the survey. And as is well known, the general economic situation remains rather tense. Therefore, alternatives are being sought. According to the special evaluation by the DIHK, one in six German industrial companies is already integrated into the value chain of the defence industry.

Vehicle manufacturing has the numerical upper hand

The leading sector is vehicle manufacturing, where around 36 percent of companies are directly or indirectly active in the defence industry. However, only 2.5 percent of all industrial enterprises produce purely military goods. Additionally, 6.9 percent manufacture products that can be used both civilly and militarily. Another 7.6 percent consider themselves more as supply chain partners. However, looking to the future, beyond the 17 percent of companies currently active in the sector, an additional 12.3 percent of businesses plan to engage in the defence sector. If this happens, that would mean over 30 percent of Germany's industrial enterprises.

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