Armor boom in Saarland: new jobs and companies in sight!

Armor boom in Saarland: new jobs and companies in sight!

The armaments industry in Germany and worldwide is currently in a remarkable upswing. This is confirmed by the current figures from the Sipri Peace Research Institute, which show a significant increase in military spending in 2024. More than 100 countries have increased their budgets in this area. Germany counts according to sr.de to the five nations with the highest weapons investments, behind the USA, China, Russia and India.

This development is closely linked to global security challenges, especially after Russian attack on Ukraine. A growing need for military strength is not only reflected in the national budgets; The stock markets also show increasing trust in the future profitability of the armaments companies. So the ZDF-Nachrichten that German armaments companies such as Rheinmetall and Thyssenkrupp will benefit from the high demand and their order books are border.

external influences and economic possibilities

Rheinmetall, Germany's largest armaments group, reports strong growth, especially through the sale of ammunition and rifle armor. The net profit forecasts for 2027 have already been doubled. The German armaments industry is currently contributing around 0.3 percent. However, this number could increase significantly if the defense expenditure is increased from 2 to 3 percent of GDP, which, according to a report by the Institute for Labor Market and Vocational Research, could create up to 200,000 new jobs.

Within Germany, there are efforts to settle other armaments companies, especially in Saarland, where the armaments companies Diehl Defense, Hil and KNDS are already based. CDU and SPD in the state parliament have planned an armaments summit to lure European and German companies into the region and create new jobs. This initiative is supported by the AfD parliamentary group, while it also warns of excessive expectations.

risks and challenges

The plans of the Saarland state government are not without risk. Although the SPD recognizes the economic necessity, they indicate the increased dangers of an increased espionage. Diehl Defense achieved sales of 1.45 billion euros last year and is currently looking for new employees to expand production. In the district of St. Wendel, KNDS and HIL create between 1,500 and 2000 jobs as well as around 300 training positions.

The context of these developments is also shaped by the international requirements for European defense. In his report, Ethan Ilzetzki, professor at the London School of Economics, illustrates the economic consequences of higher military spending. In view of increasing geopolitical tensions, many European governments are calling to increase their defense spending in order not to be negatively affected by the current situation. The EU expenditure in 2024 is just below the NATO target of 2 percent.