Europe's defense industrial base stands at a critical inflection point. Military experts warn we have just three to five years to strengthen Europe's defense capabilities before facing potentially devastating security challenges.

I talked about these trends and the European response with Kitron Group's President and CEO, Peter Nilsson and Managing Director of Kitron AS, Hans Petter Thomassen, who participated in the “Implementation Dialogue on EU Defence” with Commissioner Andrius Kubilius, held in Brussels recently.

The European Commission recognizes this urgency. They've initiated an "omnibus" bill aimed at helping defense manufacturers ramp up production quickly, bringing together industry leaders from major prime contractors to innovative startups developing cutting-edge battlefield technologies. But the challenges are enormous.

Most electronics components, semiconductors, and specialized materials used in European defense systems come from outside the continent. While stockpiling strategic materials for several years provides a short-term solution, the long-term challenge of rebuilding secure supply chains remains daunting. For specialized materials like munitions chemicals, new production facilities require five years just for permitting and environmental studies.

Regional responses vary dramatically across Europe. Countries feeling immediate threat – the Nordics, Baltics, Poland, and Germany – are leading with bold procurement initiatives and defense budgets approaching 5% of GDP. These long-term commitments provide the certainty manufacturers need for major capacity investments.

Perhaps most exciting is the rise of defense technology startups across Eastern Europe. From drone innovations to laser targeting systems, these companies bring battlefield-ready solutions developed with real-world urgency. As one Ukrainian defense official emphasized: "A system you can provide me two years from now has zero interest – I need something for tomorrow."

The war in Ukraine accelerates these trends, serving as both catalyst for action and testing ground for technologies. Defense donation programs deliver immediate battlefield feedback on new systems, strengthening the innovation cycle.

Want to explore how these defense industry transformations might affect your business? Join us at the upcoming IPC defense event in Brussels on June 10th, where industry leaders will be tackling these critical challenges head-on.

MADE IN EUROPE is an IPC Podcast, produced by SCOOP

EMS@C-Level is sponsored by global inspection leaders Koh Young (https://www.kohyoung.com) and Creative Electron (https://creativeelectron.com)

You can see video versions of all of the EMS@C-Level pods on our YouTube playlist.