MilTech: A European Industrial Perspective: Changing Scenarios, Numerous Challenges

An article by Caterina Tani in MilTech discusses the ASD press conference in November 2023. The article describes the European defence industry’s transformation over the past 30 years, explaining how the industry, downsized in the context of decades-long peace, was thrust into meeting unprecedented demand due to conflicts in Ukraine and the Middle East, and tensions with China. This led to increased defence budgets, NATO overhauls, and new EU policies to boost the European industrial base and defence industry. The article points out that challenges remain and the future of defence must be addressed.

Jan Pie, ASD’s Secretary General is quoted as explaining how COVID had a severe impact on aerospace and defence companies, resulting in a reduction of around 13.7% of their turnover. However, the Russian invasion of Ukraine became “the main driver on the sector” and a wake-up call for Europe. 

Micael Johansson, Saab’s CEO and Vice-Chair of the ASD Board, who spoke at the press conference is quoted as saying that from a capability perspective the Ukrainian war is a mix of what is used in very conventional wars and new types of confrontation, which led to a “situation where industry had to restart production and ammunition not done for a long time,” and deliver on new technologies/ capabilities, such as drones, connectivity and space assets. This scenario, he said, required the entire defence ecosystem to start again. Even though the industry responded “quite well,” by investing heavily in new and old capabilities, the importance for the sector to keep pace with new technologies and embrace EDTs and to do it “now” was clear, as production in defence is so long-term.

ASD President and Airbus CEO, Guillaume Faury, is quoted in the article speaking on the importance of cooperation at national and EU levels.

The article also covers the European Defence Agency’s annual conference on the same day where Eric Béranger, CEO of MBDA, is quoted on the need for an adequate defence industrial base in Europe.