Central Europe’s arms makers are struggling to find workers due to increased business from Ukraine.

Central Europe's arms makers are struggling to find workers due to increased business from Ukraine.

Central Europe’s Arms Manufacturers Adapt to Booming Demand

In the wake of the biggest boom since the end of the Cold War, Central Europe’s arms manufacturers are finding innovative ways to cope with an unprecedented spike in demand. With tight labor markets and increased defense spending, companies in Poland and the Czech Republic are launching new programs to recruit and train workers.

Facing some of the lowest unemployment rates in the European Union, these countries’ arms industry has accelerated production to supply Ukraine and meet global demand. To address labor shortages and enhance efficiency, companies like Czech ammunition and artillery shell producer STV Group are taking unique approaches. STV Group is building company-financed apartments for new hires, close to its largest plant in Policka. Additionally, the company is offering retired workers free canteen meals to tap into their expertise and knowledge of Soviet-era ammunition, which is back in production for Ukraine.

The Defense and Security Industry Association (DSIA) of the Czech Republic has also highlighted the need for more workers to sustain production. Jiri Hynek, the president of DSIA, stated that with sufficient labor and materials, Czech companies could potentially increase production by up to 20 percent. The association represents over 160 companies, and Hynek estimated that 90 percent of the industry’s production is exported, with significant contributions from supplies to Ukraine.

As the demand for weapons grows, the need for younger workers with technical skills becomes crucial for the industry’s future growth. However, Hynek expressed concerns about the aging population and the lack of skilled individuals available. He emphasized that the industry faces a shortage of researchers, developers, and innovators, impacting their ability to meet growing demand.

Czech explosives maker Explosia, known for producing the plastic explosive Semtex, is looking to offset the lack of workers through increased cooperation with local universities and the automation of certain processes. Polish military technology company WB Group has also made changes to its workforce, actively hiring women on assembly lines that were predominantly staffed by men. With these adjustments, the aim is to meet the surge in orders and ensure its production system can accommodate the demand.

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Poland and the Czech Republic play a significant role in Ukraine’s military pipeline. These two countries supplied over 20 percent of Ukraine’s major weapons imports in 2022, according to the Stockholm International Peace Research Institute. The Czech government revealed that it had sent military supplies worth 40 billion Czech crowns ($1.84 billion) to Ukraine within the first year of the war. The most in-demand items include large-caliber ammunition for Soviet-era weapons, western standard artillery, rocket-propelled grenades, and tank ammunition.

Aside from addressing the labor shortage, the arms industry is also attempting to tap into national patriotism. The lack of skilled workers has hindered the expansion of production, prompting Poland’s state-owned PGZ, which controls numerous companies involved in the production of weapons and military supplies, to target employees across various industries through social media advertisements. PGZ plans to launch a campaign urging Poles employed in Scandinavian shipyards to return home and work on new contracts to build ships for Poland’s navy. The campaign aims to emphasize the opportunity to contribute to national defense and work closer to home.

In conclusion, the booming demand for arms in Central Europe has placed significant pressure on the industry to recruit and train new workers. From building apartments for new hires to leveraging the expertise of retired workers, arms manufacturers are employing creative strategies to meet the rising demand. However, the shortage of skilled workers remains a major challenge that industry associations and companies are actively addressing. As the industry continues to thrive, fostering a spirit of patriotism within the workforce will also play a crucial role in ensuring its sustained growth and success.

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