German industry is increasingly focusing on arms production, reports the Wirtschaftswoche magazine, citing data from the German Chamber of Industry and Commerce (DIHK).
Nearly a third of industrial companies see opportunities for their business model in the security and defense sector. “The study reflects favorable prospects for the defense industry as a result of geopolitical conflicts“, the publication quotes DIHK expert Rainer Kambeck. At the same time, the general economic situation remains tense.
One in six industrial companies in Germany, according to the DIHK, is already involved in the defense industry production chain. The automotive industry is leading, with 36% of companies directly or indirectly involved in the defense sector. However, only 2.5% of all industrial enterprises produce exclusively military goods, while 6.9% produce dual-use products that can be used for both civilian and military purposes. Another 7.6% are considered component suppliers.
Furthermore, an additional 12.3% of industrial enterprises, in addition to the current 17%, plan to enter the defense sector.