On Wednesday, Bloomberg reported that German defense contractors are seeing profits soar as orders are backlogged and the world looks to rearm amid the war in Ukraine.
The news outlet noted that new data from the Stockholm International Peace Research Institute (SIPRI) showed Germany ranking sixth in arms exports in 2022, after the US, France, Russia, China and Italy.
Although so far, all that are available are preliminary figures, reports indicate that in 2022 Berlin approved arms sales which added up to over €8.35 billion ($9.13 billion), the second highest figure posted by the nation ever, following its all-time high of €9.35 in 2021. In 2022, its biggest order was a reported sale of three submarines, bought by Israel from Thyssenkrupp Marine Systems for €1 billion each.
The country’s largest defense contractor, Düsseldorf-based arms manufacturer Rheinmetall, reported a record €6.4 billion in earnings for 2022, up by 27% from 2021. The company also reported it has historically high new orders, as well as a record backlog of €26.6 billion. Citing its increasing demand, the company is presently installing a new munitions assembly line for more than €10 million.
In February, high-performance radar manufacturer Hensoldt reported it had seen a record €5.4 billion order backlog, noting how the war in Ukraine had brought the importance of a capable defense industry “back into the political and social spotlight.”
Much of the increase in business for Germany’s defense contractors is being attributed to the Russian military conflict with Ukraine. Last year, Kiev was noted for being the biggest recipient of German arms shipments, receiving €2.24 billion worth of defense equipment and machinery from Germany.
Not all of the surge was attributable to Ukraine, with the Netherlands coming in second, with €1.83 billion in purchases, followed by the US, UK, and Hungary.
However not all Germans are thrilled with the massive expansion of the nation’s defense industry. Bloomberg noted that polls show only about half of German citizens want to see their country arming Ukraine.
