The new role of the defence industry
In times of profound geopolitical upheaval and structural economic challenges, a fundamental change is emerging in Germany and Europe. The realisation that national security can no longer depend on non-European partners, but must be shaped by one's own efforts, has ushered in a second turning point. From the perspective of the German security and defence industry, this transformation process is seen as an opportunity to combine innovative technologies, flexible production processes and strategic investments into a holistic concept. The focus is not only on military equipment, but also on creating sustainable economic impulses that strengthen the industrial base beyond the defence industry and open up new long-term perspectives.
Defence spending as an engine for economic recovery
Investment in the defence industry has a twofold effect: on the one hand, it ensures national and European defence capabilities, and on the other hand, it acts as an important economic factor.
Recent studies by leading German economic institutes show that every euro invested in this sector sustainably stimulates economic growth. This two-fold dividend – security and economic progress – is the engine of a new growth phase in which technological innovation, stable jobs and the transfer of know-how go hand in hand. HENSOLDT is at the forefront of this development, developing state-of-the-art sensor technology and digital defence solutions that go far beyond conventional defence equipment and thus significantly shape the future of the industry.
The change in procurement policy reflects the broader social and political upheaval. It marks a move away from procurement based on cash flow and towards needs-based, long-term investment plans that offer the industry predictability and reliability and expand the capabilities of the Bundeswehr in a targeted manner.
This is all the more important as digital technologies – keyword software-defined defence – are increasingly making it possible to link existing capabilities, roll out modernisations based on software and massively shorten development cycles.
Europe will not be able to achieve similar production volumes to the war economies in Russia and China, which already produce as much armaments in three months as the entire NATO in one year. Therefore, we have to counter the masses with more class. This requires smart and networked sensors, the fusion and distribution of data and the targeted use of AI. After all, data is already as important as ammunition on the modern battlefield. At HENSOLDT, we have many years of extensive experience in the integration of AI and therefore want to become a pioneer in the field of software-defined defence.
This paradigm shift creates the framework within which companies like HENSOLDT can make strategic decisions and systematically expand their production capacities. Long-term perspectives make it possible not only to overcome short-term bottlenecks but also to invest sustainably in research, development and manufacturing. In this way, the defence industry becomes a stable pillar that strengthens both the security and the economic foundation of Germany and Europe.
Industrial delivery capability and sustainable scaling as a model for success
An outstanding example of the capabilities of a modern defence industry is the impressive scaling of radar production at HENSOLDT. Within just two years, the production capacity of the state-of-the-art TRML-4D radar was increased from three to 15 units per year. This rapid expansion impressively demonstrates that HENSOLDT not only has the theoretical know-how, but also the operational capability to efficiently meet short-term requirements, such as the immediate needs of Ukraine. Flexible production, combined with innovative manufacturing processes, ensures delivery capability and strengthens confidence in the company's own industrial performance.
A key component of structural change is the targeted integration of skilled workers from sectors suffering from structural crises. In particular, the traditional automotive industry, which has faced considerable challenges in recent years, represents a reservoir of highly qualified workers. HENSOLDT is taking advantage of this opportunity to transfer valuable know-how and proven work processes to the defence industry. The transfer of experienced specialists to innovative, future-oriented technologies not only promotes the company's own competitiveness, but also contributes to macroeconomic stabilisation. This synergy effect is a central building block for sustainable success in a time when change and adaptability are more important than ever.
European cooperation and future prospects as the key to success
Looking to the future, the focus is not only on national projects, but also on close European cooperation. Initiatives such as the European Sky Shield (ESSI) make it clear that increased cross-border cooperation sustainably strengthens the defence capability of the entire continent. A strong, integrated security network is created by exchanging technologies, sharing production capacities and pooling resources.
Added to this is the increased cooperation between European companies. Not all technologies have to be developed in parallel in different countries. Rather, joint development and production makes it possible to meet existing demand quickly and – due to the reduced effort – efficiently. This cooperation also opens up the possibility of tapping into new markets and expanding industrial capacities across Europe. The combination of national initiative and European integration thus forms the basis for a future in which security and economic progress are inextricably linked.
Furthermore, it should not go unmentioned that our previously secure, liberal democracies are repeatedly exposed to targeted attacks in an increasingly digitally networked world. Cyber attacks, disinformation campaigns and manipulative influences threaten the very foundations of our liberal social order. HENSOLDT – together with its partners – is ready to face these challenges with determination.
With state-of-the-art technology and innovative security solutions, we are committed to safeguarding the integrity of our democratic systems. This commitment is of central importance, because stable democracies are based on the foundations of security, progress and social cohesion. In close cooperation with leading technology providers and security policy actors, we are continuously working to ensure that democratic discourse and the rule of law are not only preserved but also strengthened in a digital future – a clear commitment to defending the values that make up our society.
Conclusion: security and the economy as an inseparable vision of the future
The second turning point symbolises a comprehensive structural change that goes far beyond purely military aspects. HENSOLDT embodies the modern approach of seeing security as an engine for growth and integrating future-oriented technologies into industrial practice. Long-term, demand-oriented investment plans, the sustainable scaling of innovative products and the targeted integration of skilled workers from stagnating industries create a new paradigm that paves the way to a self-determined and prosperous future.
The close interlinking of defence capabilities and economic success not only ensures national sovereignty, but also creates stable jobs and continuous progress in an increasingly challenging global environment. Every investment in one's own defence industry is a double win, strengthening the security foundation while providing significant impetus for economic growth and technological progress. In the context of the second turning point in history, HENSOLDT is committed to a future in which security and economic success are inextricably linked, together laying the foundation for a strong, independent Europe.