What is preventing the German defence industry from accelerating production?
Germany-made Leopard 2 MBT. (Photo: German Army)
Although Germany has announced investments in its manufacturing capacities and reduced regulatory barriers, there are still challenges to be overcome.
In order to refill its stockpiles, Germany has been taking several measures to increase and accelerate the production of defence solutions. Although the country has announced investments in its manufacturing capacities and reduced regulatory barriers, there are still challenges to be overcome in this process.
After investing less than 2% of its GDP in defence for over 30 years, according to SIPRI’s database, Berlin plans to surpass this mark by 2024.
A €100 billion ($107 billion) special fund was also included in the 2022 federal budget to enable the acquisition of cutting-edge systems and technologies for national services.
However,
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![US Africa Command targets logistic solutions]()
US Africa Command targets logistic solutions
AFRICOM is seeking IT systems and supply chain management solutions to enhance interoperability and standardise logistical processes in its area of responsibility.
-
![Rheinmetall sales up by almost a quarter on wave of German spending]()
Rheinmetall sales up by almost a quarter on wave of German spending
Germany’s Rheinmetall released its 1H 2025 results on 7 August, continuing the strong growth of recent years. A particular highlight of the result’s presentation was the Skyranger air defence system for which the company is predicting sales of about US$8.2 billion from the German Government before the end of the year.
-
![Defence companies continue to ride procurement wave]()
Defence companies continue to ride procurement wave
Vehicle and technology companies are reporting substantial growth compared to the first half of 2024. Italy’s Fincantieri saw revenues jump 24% for the first half of the year compared to 2024 and Thales up 6.8% for the same period. General Dynamics reported second quarter revenue growth of 8.9% for the second quarter compared to last year and MilDef reported organic order intake growth of 58%.
-
![Singapore plots a way forward with new technology and formation reform]()
Singapore plots a way forward with new technology and formation reform
Singapore spends about 3.5% of GDP on defence and the section’s budget sits on high on the proportion of national spending. The country is investing in uncrewed technology, medium- and long-range fires and new submarines and ships with the hunt also on for new maritime patrol aircraft.
-
![World Defense Show promises bigger and better event for 2026]()
World Defense Show promises bigger and better event for 2026
At this year's IDEF in Istanbul, Shephard spoke to World Defense Show (WDS) CEO Andrew Pearcey about his event's strategic role in Saudi Arabia, its themes and new features for 2026 and how it has grown since its launch in 2022.
