{"id":36958,"date":"2024-01-09T10:22:00","date_gmt":"2024-01-09T10:22:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2024\/01\/09\/ukraine-war-pressure-is-reshaping-germanys-high-tech-defense-industry\/"},"modified":"2026-08-08T01:04:07","modified_gmt":"2026-08-08T01:04:07","slug":"ukraine-war-pressure-is-reshaping-germanys-high-tech-defense-industry","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/industry\/2024\/01\/09\/ukraine-war-pressure-is-reshaping-germanys-high-tech-defense-industry\/","title":{"rendered":"Ukraine war pressure is reshaping Germany\u2019s high-tech defense industry"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">BERLIN \u2014 Germany\u2019s high-tech defense firms are adapting their business practices amid the war in Ukraine, replacing the sector\u2019s boutique approach with a greater focus on mass production, according to company officials.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key factor now tends to be speed, officials said. How soon systems can be delivered and combat-ready trumps clients\u2019 requests for custom tailoring.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe have seen a fundamental change in our production philosophy,\u201d Lothar Belz, company spokesperson for German <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2023\/09\/01\/hensoldt-era-fuse-passive-sensing-tech-in-bid-for-luftwaffe-deal\/\">sensor<\/a> manufacturer <a href=\"https:\/\/www.defensenews.com\/industry\/2024\/01\/08\/germanys-hensoldt-hires-thales-executive-to-lead-company\/\">Hensoldt<\/a>, said. This stems in large part from the increased demand, he said. While in the past Hensoldt usually delivered fewer than five large radars per year, those numbers have now risen to over 15 annually. By 2025, the cadence is expected to be 20 per year, according to Belz.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Output from certain departments \u2013 such as remote sensing and electronic warfare \u2013 has increased threefold since the \u201cZeitenwende,\u201d German Chancellor Olaf Scholz\u2019s famous turn of phrase describing a continent no longer deemed at peace following Russia\u2019s invasion of Ukraine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">About half of Hensoldt\u2019s radar production is <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2023\/10\/11\/germany-to-send-ukraine-1b-in-air-defense-tech-plus-more-tanks\/\">destined for Kyiv<\/a> this year, Belz said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s an example how \u201cZeitenwende\u201d \u2013 which translates into something like turning point or watershed moment \u2013 is slowly seeping into Germany\u2019s defense policy and industry apparatus.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The term also came with a financial component, most notably a \u20ac100 billion cash infusion to the German armed forces and a pledge to raise annual defense spending past the NATO target of 2% of GDP for the coming years. Scholz has called the measures \u201cthe most far-reaching change in German security policy since the Bundeswehr was founded in 1955.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2024\/01\/04\/were-out-of-money-us-exhausts-security-funds-for-ukraine\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1238354994.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">\u2018We\u2019re out of money\u2019: US exhausts security funds for Ukraine<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Administration officials had issued warnings about this outcome for months.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<h1 class=\"wp-block-heading\">Zeitenwende zeitgeist<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Companies are feeling the time crunch. \u201cWe definitely had orders where the customer said: \u2018At the end of the day, we don\u2019t care about the exact color scheme that much,\u2019\u201d said Pitt Marx, spokesperson of Thales Germany. He explained that contracts previously were usually signed with some breathing room when it came to the production timeline. Now, the company has had to \u201cbundle capacities\u201d and assign some employees to projects they would not usually work on to meet objectives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thales\u2019 customers receive their orders quicker than they would have a few years ago, Marx said. Similarly, at Hensoldt, radars are now delivered typically \u201cwithin a year\u201d of the contract, though exact timing still depends on \u201cadaptation necessities,\u201d Belz said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To meet the new demands, Hensoldt has added a new shift and increased the size of its production staff by 15% in the past two years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Strong hiring is happening throughout the industry. German radio specialist Rohde &amp; Schwarz added almost 2,000 new employees, and the company also added a third shift, according to spokesperson Dennis-Peter Merklinghaus.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At Hensoldt, the dictate of the Zeitenwende has affected everything, ranging from production \u2013 \u201cwe now do industrial serial production,\u201d Belz said \u2013 to the supply of components and even the handling of testing and the handoff of finished systems to customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thales\u2019 Marx said that when it came to delivery and the training of workers, the company had become \u201cmore pragmatic,\u201d a term used frequently in several interviews conducted for this story to denote that certain standards had to be softened to make mission.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere is a fundamental difference in whether you are ordering something to keep an eye on your border, or whether you\u2019re deploying it right into an active warzone,\u201d he said.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"7774\" height=\"5168\" src=\"\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg\" alt=\"\" class=\"wp-image-118384\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg 7774w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg?resize=300,199 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg?resize=768,511 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg?resize=1024,681 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg?resize=1536,1021 1536w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1747205341.jpg.jpg?resize=2048,1361 2048w\" sizes=\"auto, (max-width: 7774px) 100vw, 7774px\" \/><figcaption class=\"wp-element-caption\">Radar systems like Thales&#8217; Ground Master 200 (GM200) , shown here deployed in Romania, are in high demand in the aftermath of Russia&#8217;s Ukraine invasion. (Photo by Danial Mihailescu\/AFP via Getty Images)<\/figcaption><\/figure>\n\n\n\n<h1 class=\"wp-block-heading\">Pandemic aftershocks<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the industry is still feeling the aftershocks of the COVID-19 pandemic, whose supply chain disruptions never quite went away. It was mentioned as a concern in every interview Defense News conducted for this story.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Rohde &amp; Schwarz, retaining control of needed components has paid dividends, keeping deliveries on time even during the height of the global health crisis. \u201cWe can build everything from the smallest chips to ordinary server racks ourselves and do so within Germany,\u201d Merklinghaus said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hensoldt\u2019s Belz also emphasized the importance of supply chains. His company has made new investments in logistics, building a new warehouse and distribution center. This would have been unthinkable in the past, as the company would order components as they became necessary for the fulfillment of contracts. Now, it maintains stocks of crucial parts. In early December, Hensoldt announced the acquisition of the electronics and logistics company ESG.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2023\/12\/04\/four-factors-shaping-european-defense-in-2024-and-beyond\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"181\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/34_special_European.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Ukraine\u2019s long shadow: Four factors shaping European defense in 2024<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">There is a sense of urgency in the face of Russia\u2019s assault on Ukraine and the fallout for the continent.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The greater need for speed may also require customers to recalibrate their expectations. In the past, it was common practice for government buyers to provide hundreds of pages and thousands of bullet points of individualized wishes for a contract, and even to change the requirements while production was already running, said Belz.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The shift toward producing larger quantities in shorter amounts of time \u201crequires a thorough understanding of operational requirements on our part but also a certain amount of restraint from the customer,\u201d he said. Not all those interviewed shared this philosophy but Hensoldt believes it\u2019s the right move for a new era, the spokesperson said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After all, he said, the key to success in the new, fast-paced world of European high-tech defense companies is \u201cnot just being willing to deliver, but being able to.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A sector known for its boutique approach is adapting to the exploding demand generated by the war in Ukraine.<\/p>\n","protected":false},"author":7,"featured_media":118383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":13,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,29,13],"tags":[],"coauthors":[3397],"class_list":["post-36958","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-battlefield-tech","category-home","category-industry"],"acf":{"subheadline":"Following Russia\u2019s invasion, vendors find that speed of delivery trumps custom 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