Whether tank manufacturer Rheinmetall, Panzerfaust manufacturer DND or rifle manufacturer Heckler & Koch: they have all been members of an industry association for a long time.

The boom in the arms industry since the Russian attack on Ukraine has caused the membership of an industry association to skyrocket. "We now have 340 companies as members, 100 more than at the end of last year," said Hans Christoph Atzpodien, CEO of the Federal Association of the German Security and Defense Industry (BDSV). When he took office in 2017, the BDSV had only 70 members.
The new members wanted advice on how to do business in the defense industry and which regulations were relevant to them. They also hoped to network with buyers.
Atzpodien did not name any specific new members. Several companies come from the automotive industry, where they had previously operated as suppliers or service providers. Due to the crisis in the German auto industry, some companies are now reorienting themselves and relying on contracts from the defense industry to offset their weaknesses in the automotive business. As an example, he cited engineering firms, whose expertise is less in demand among automakers than before.
Industry has its own rulesWith regard to the increasing military spending to which NATO states have committed themselves, the association representative said: "For decades, the public sector had to restrain its defense spending, but this has now completely changed: An incredible dynamic can be felt throughout the entire economy, also because of our threat situation."
Germany's defense companies generally need new service providers and suppliers, but the industry and the Bundeswehr Procurement Office have their own rules.
For example, certain employees require a so-called security clearance to participate in weapons production. Such a clearance must be applied for, and the applicant is reviewed and vetted by government officials.
Such a process takes time, Atzpodien said. "This is a first tip for companies: Expand the circle of employees with security clearance and qualify yourselves on the purchasing portals of your potential customers."
Germany's largest defense company, Rheinmetall, whose CEO Armin Papperger is also president of the German Association of German Defence Associations (BDSV), reports increasing demand from suppliers. These are often companies in the automotive industry.
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