Germany's defence boom reshapes industry with eastern states rising fast

A spokesperson for the German Security and Defence Industry Federation (BDSV) told Redaktionsnetzwerk Deutschland (RND) in its Monday editions that the number of member companies in the BDSV had risen by around 200 from 2024 to 2025—and by a further 100 since November 2025, bringing the total to 550. This growth trend is also evident in eastern Germany, where the arms industry had previously been less prominent.

Hans Christoph Atzpodien, the federation's managing director, told RND: "In recent years, eastern Germany has seen a significant increase in activities—particularly among mid-sized companies—aimed at strengthening the German security and defense sector." He noted "a series of major defense contractors establishing operations" in the region, including Hensoldt and Airbus Defence and Space. MBDA, Diehl Defence, and KNDS were also expanding their presence in the east, though "with fewer employees overall than in western Germany," Atzpodien added. "This disparity is historically rooted."

Last autumn, the state premiers of Saxony and Thuringia, Michael Kretschmer and Mario Voigt (both CDU), demanded that eastern Germany receive a greater share of the recent surge in government defense contracts.

A spokesperson for the Thuringian State Chancellery reaffirmed this stance, telling RND: "Thuringia is actively advocating with the federal government for greater consideration in investments related to security and defense capabilities. This applies to procurement and supply chains as well as infrastructure and site development. Thuringia holds substantial potential in future-oriented fields such as robotics, optics, and materials science."