2023-08-05

Winds of war blow on the weapons makers’ economies

As reported by Reuters, Central Europe’s arms manufacturers are looking for new ways to cope with the biggest boom since the end of the Cold War. Facing some of the tightest labor markets in Europe, weapons makers in Poland and the Czech Republic are launching or expanding programs to recruit and train new workers after the Ukraine conflict and the subsequent winds of war drove a spike in demand for their productions. The goal is not only on supplying Ukraine but also looking to meet the rising global demand to boost defense spending.

Central Europe represents an important pipeline for Ukraine’s military. Of the 29 states that supplied major weapons in 2022, Poland and the Czech Republic accounted for more than 20 percent of the total Ukrainian arms imports by volume, according to the Stockholm International Peace Research Institute.

At the same time, the Czech Republic and Poland boast among the lowest unemployment rates in the EU at 2.7% for June, well below the EU average jobless figure of 5.9% for the same period.

However, other sectors in Poland – emerging Europe’s biggest economy – and the Czech Republic have struggled in recent years to find workers: a situation that has driven up labor costs and dampened growth.

Polish military technology company WB Group started hiring women last year on a larger scale on assembly lines previously comprising mostly male workers. The company – which employs more than 2,000 staff and generated 602 million zloty ($150 million) in revenue last year – produces unmanned drones and missile systems. “With the increase in orders we had to change the production system“, the company’s spokesman told Reuters.

Poland’s state-owned PGZ – which controls dozens of companies making supplies that include weapons, ammunition, armored transporters, and unmanned air systems – is targeting employees in a wide range of industries using social media ads, the group’s head of human resources.

PGZ – which employs more than 18,000 people – also plans a campaign next year aimed at convincing Poles employed in Scandinavian shipyards to return home to work on new contracts to build ships for Poland’s navy using ads that highlight the opportunity to boost national defense and work closer to home.

The geopolitical situation has led to the largest armaments projects in history for the group, which means demand for skilled workers has increased dramatically“, the company’s spokesman reported.

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