Leading German defense companies are urging NATO member states to translate their pledged increases in military spending into concrete, long-term orders. This collective appeal comes as NATO leaders prepare for a summit in the Netherlands, where a commitment to spending 5% of GDP on defense is widely anticipated.
Industry executives emphasize that sustained, multi-year contracts are essential for providing the planning security necessary to significantly ramp up production capacities and foster innovation within the defense sector. According to figures like Michael Schellhorn, Head of Airbus’s defense division, and Alexander Zagel, head of Renk, sporadic or short-term orders make it challenging for companies to invest in new facilities, hire skilled labor, and optimize supply chains.
Oliver Dierre, CEO of Hensoldt, further underscored the need for streamlined procurement processes. The industry’s message is clear: without a reliable pipeline of orders, the momentum generated by increased defense budgets risks being inefficiently utilized. They argue that long-term commitments are crucial to move beyond emergency responses and build a robust, resilient industrial base capable of meeting future security demands.
This call for action is set against a backdrop of intensifying geopolitical challenges, particularly in Eastern Europe, which has spurred a renewed focus on rearmament across the continent. Recent developments, such as NATO’s testing of new surface drones and Rheinmetall’s plans with Lockheed Martin to establish large-scale production of critical missiles like ATACMS and Patriot PAC-3 in Europe, illustrate the scale of transformation underway.
Ultimately, German defense companies believe that stable, long-term orders from NATO countries are not just a business demand but a strategic necessity. Such commitments would ensure that European defense industries can consistently deliver the advanced equipment and munitions required to fortify collective security and deter potential adversaries effectively. This industrial readiness is now seen as indispensable for the alliance’s future.