155 millimetre artillery shells stored in a Rheinmetall factory | File Photo: Wolf von Dewitz/dpa
Berlin: German industry is increasingly turning its attention to defence production, according to the German Chamber of Industry and Commerce (DIHK).
A survey obtained by the business news magazine Wirtschaftswoche revealed on Friday that almost a third of industrial companies see opportunities for their own business models in the security and defence sector.
“The survey reflects the positive outlook in the defence industry – as a result of geopolitical conflicts,” said DIHK expert Rainer Kambeck.
The general economic situation remains tense due to the conflict in the Middle East, with leading institutes having revised down their forecast for German growth this year.
But the defence sector is likely to benefit from geopolitical tensions, with the German government having committed to spend heavily on defence in the coming years.
The DIHK’s special analysis suggests one in six industrial firms in Germany is already integrated into the defence sector’s value chain.
The frontrunner is the vehicle manufacturing sector, where 36% of companies are active directly or indirectly in the defence sector.
Only 2.5 percent of all industrial firms explicitly produced military goods, while 6.9 percent make manufactured goods that could be used for both civilian and military purposes. A further 7.6 percent saw themselves as suppliers.
Looking to the future, a further 12.3 percent of industrial firms planned to become involved in the defence sector, in addition to the current 17 percent.
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