Overview
- An industry survey from DIHK reports that 17% of German industrial firms are already part of the defense value chain.
- Only a small share make weapons, with 2.5% producing military goods, 6.9% making dual-use items used in civilian and military settings, and 7.6% supplying the sector.
- Vehicle manufacturing shows the deepest link, with 36% of companies in that branch active directly or indirectly in defense work.
- Participation varies by region, led by South Germany at 21%, then North at 16%, West at 14.1%, and East at 8.8%.
- Looking ahead, 12.3% of firms plan to enter the sector, and DIHK says geopolitical conflicts are driving demand even as many companies still face a tense economy.