Transformations in Germany's Defense Industry: A Shift in Workforce Demand
As job cuts hit the automotive sector, Germany's defense manufacturers seek new talent amid rising military investments.
The German industry is undergoing significant transformations, particularly in the defense sector, where military manufacturers are actively seeking new workers while some leading automotive companies, such as Volkswagen, announce job cuts.
According to a recent study by a consulting firm, a projected 72 billion euros per year will be invested in defense by NATO member states in Europe, potentially creating around 680,000 jobs across the continent in the coming years.
Further research by another consulting firm indicates that the precise number of skilled workers required will depend on the level of defense spending.
Should European countries allocate two percent of their Gross Domestic Product (GDP) to defense as mandated by NATO guidelines, an estimated shortage of around 160,000 specialists could arise by 2030. With a moderately increased defense spending (2.5% of GDP), the shortage could rise to approximately 460,000 positions, and a significant increase to three percent could lead to a shortfall of up to 760,000 professionals.
The studies highlight a critical demand for specialists in artificial intelligence and big data analysis.
Defense manufacturers, particularly those involved in weaponry, radar technology, and combat vehicle systems, are not only seeking new personnel but also new production sites to accommodate anticipated order inflows.
Some companies are looking to benefit from the crises in the automotive sector.
For instance, the director of a Bavarian radar manufacturer has stated that they are negotiating with automotive suppliers like Continental and Bosch to onboard their employees.
Their radar systems are currently in use, such as in Ukraine for air defense, capable of detecting even stealth bombers like the U.S. F-35.
In eastern Germany, the defense group KNDS plans to take over a train manufacturing plant from Alstom, which was set to close in 2026, thereby absorbing half of its 700 workers.
The facility is set to begin production of components and modules for the Leopard 2, Puma, and Boxer tanks by 2025.
Rheinmetall is also relying on labor from other sectors; for instance, a former specialized components expert from the oil industry has transitioned to producing tank tubes in one of its factories, while a former beautician is now painting tank shells.
Transitioning from civil to defense industry roles presents challenges, according to a consultant specializing in the security and military sectors.
Certain positions may facilitate such transitions, especially for production line workers and development engineers from automotive backgrounds, but it is not universally applicable across all roles, such as sales or procurement specialists.
The CEO of an industry association has pointed out that security vetting is mandatory in many defense manufacturing firms, which can slow down the hiring process.
The German Ministry of the Interior maintains a list of countries considered security risks, which includes Afghanistan, China, Vietnam, Iraq, Iran, Syria, Russia, and former Soviet republics.
Even prolonged stays in these locations can hinder employment opportunities in defense manufacturing.
The urgency to fill these positions may see specialists from the United States coming to Europe.
The reduction in funding for research institutes and universities announced by the U.S. government may create an opportunity for Europe to attract talent, especially as many potential candidates reassess their value and future in the U.S. labor market.
The defense industry is under pressure to develop new strategies for attracting a diverse workforce.
Increasing the representation of women in leadership roles, particularly in sectors traditionally dominated by former military personnel, has been suggested as a means to foster beneficial changes.
Additionally, as digitalization alters the profiles of sought-after workers, there is an acute demand for IT professionals, artificial intelligence specialists, and data analysts, which the industry struggles to meet.
To remain competitive and attract the necessary expertise, companies may need to consider increasing offered salaries.
According to a recent study by a consulting firm, a projected 72 billion euros per year will be invested in defense by NATO member states in Europe, potentially creating around 680,000 jobs across the continent in the coming years.
Further research by another consulting firm indicates that the precise number of skilled workers required will depend on the level of defense spending.
Should European countries allocate two percent of their Gross Domestic Product (GDP) to defense as mandated by NATO guidelines, an estimated shortage of around 160,000 specialists could arise by 2030. With a moderately increased defense spending (2.5% of GDP), the shortage could rise to approximately 460,000 positions, and a significant increase to three percent could lead to a shortfall of up to 760,000 professionals.
The studies highlight a critical demand for specialists in artificial intelligence and big data analysis.
Defense manufacturers, particularly those involved in weaponry, radar technology, and combat vehicle systems, are not only seeking new personnel but also new production sites to accommodate anticipated order inflows.
Some companies are looking to benefit from the crises in the automotive sector.
For instance, the director of a Bavarian radar manufacturer has stated that they are negotiating with automotive suppliers like Continental and Bosch to onboard their employees.
Their radar systems are currently in use, such as in Ukraine for air defense, capable of detecting even stealth bombers like the U.S. F-35.
In eastern Germany, the defense group KNDS plans to take over a train manufacturing plant from Alstom, which was set to close in 2026, thereby absorbing half of its 700 workers.
The facility is set to begin production of components and modules for the Leopard 2, Puma, and Boxer tanks by 2025.
Rheinmetall is also relying on labor from other sectors; for instance, a former specialized components expert from the oil industry has transitioned to producing tank tubes in one of its factories, while a former beautician is now painting tank shells.
Transitioning from civil to defense industry roles presents challenges, according to a consultant specializing in the security and military sectors.
Certain positions may facilitate such transitions, especially for production line workers and development engineers from automotive backgrounds, but it is not universally applicable across all roles, such as sales or procurement specialists.
The CEO of an industry association has pointed out that security vetting is mandatory in many defense manufacturing firms, which can slow down the hiring process.
The German Ministry of the Interior maintains a list of countries considered security risks, which includes Afghanistan, China, Vietnam, Iraq, Iran, Syria, Russia, and former Soviet republics.
Even prolonged stays in these locations can hinder employment opportunities in defense manufacturing.
The urgency to fill these positions may see specialists from the United States coming to Europe.
The reduction in funding for research institutes and universities announced by the U.S. government may create an opportunity for Europe to attract talent, especially as many potential candidates reassess their value and future in the U.S. labor market.
The defense industry is under pressure to develop new strategies for attracting a diverse workforce.
Increasing the representation of women in leadership roles, particularly in sectors traditionally dominated by former military personnel, has been suggested as a means to foster beneficial changes.
Additionally, as digitalization alters the profiles of sought-after workers, there is an acute demand for IT professionals, artificial intelligence specialists, and data analysts, which the industry struggles to meet.
To remain competitive and attract the necessary expertise, companies may need to consider increasing offered salaries.
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