Armaments boom in Schleswig-Holstein: record numbers and new jobs!

Armaments boom in Schleswig-Holstein: record numbers and new jobs!

The arms industry in Schleswig-Holstein is currently experiencing a real boom. Triggered by geopolitical tensions, particularly the war in Ukraine, the industry is booming in this country. As the Kiel News reports, Schleswig-Holstein is one of the core regions of German defense technology, in which over 37 companies currently provide around 9,000 jobs. There are signs of continued growth, which has been going on since the occupation of Crimea in 2014.

More and more people are finding work in this industry, while the number of employees has increased by an impressive 47.6 percent since 2015. In Kiel alone, over 6,478 skilled workers work in the defense industry, which accounts for every second job in the city's manufacturing sector. The largest players among the companies are Thyssenkrupp Marine Systems (TKMS), with 3,340 employees, and Condok, which specializes in container construction for the Bundeswehr with 325 employees.

Stability and growth

On Friday, September 4, 2024, Olaf Scholz and Boris Pistorius demonstrated the importance of the arms industry for the Bundeswehr at the operational launch of a new air defense system. The entire industry in Schleswig-Holstein has an annual turnover of between 1.5 and 2 billion euros, with 70 percent of the products being exported. As a result, companies such as Rheinmetall and FFG are planning heavy investments in new infrastructure and capacities, amounting to around 75 million euros.

Thanks to planned defense spending, a stable increase is expected in the future. The NATO countries have committed to investing five percent of their GDP in defense by 2035, and Germany is already planning to do so by 2029. Dieter Hanel, chairman of the defense technology working group, makes it clear that it is important to close the Bundeswehr's armaments gaps and give industry planning security.

Shortage of skilled workers and attractiveness of the industry

Although the growth trend is positive, the industry is feeling the pressure of a skills shortage, particularly skilled workers. However, young people, including from the automotive industry, are increasingly showing interest in moving to Schleswig-Holstein to work in defense technology. This can be explained primarily by the cooperation with universities, such as the Kiel University of Applied Sciences.

The Defense Technology Working Group emphasized in its annual report that companies are optimistic about the future. The order situation is stable, while the companies are doing everything they can to promote both the recruitment and training of young talent. The IHK Schleswig-Holstein emphasizes that the location is considered the center of the German defense industry thanks to its diversity and its over 30 defense technology companies. Not only is military utilization high here, companies like German Naval Yards are also showing with their innovation projects that they are ready to gain a foothold in the civilian sector.

Developments also include the five-fold increase in Rheinmetall's share price since the start of the Ukraine War, as well as the successful implementation of new projects, such as the interceptors that the German Naval Yards are developing.

Conclusion: A look at the future

The arms industry in Schleswig-Holstein is facing a phase of growth and stability. Despite the challenges imposed by, for example, strict arms export regulations, companies report positive developments and want to further expand their international activities. The assessment of the Defense Technology Working Group reflects a confident picture: With a large number of new and continuing positive developments, Schleswig-Holstein could continue to be very popular as an armaments location in the future, especially if the global security situation continues to worsen. Obviously, all eyes will be on this industry as new orders and technologies are on the way.

For the people of Schleswig-Holstein, the arms industry remains a defining topic that addresses both economic opportunities and social discussions. What is certain is that there are exciting times ahead here.

Overall summed up n-tv the situation of the arms industry in the north, which is proving to be stable and growing in times of global uncertainty. It remains to be seen how this course will develop further.