Europe's weapon manufactures face labor shortage due to skills gap
Europe's defense sector is experiencing a surge in demand following Russia's attack on Ukraine, leading to a shortage of skilled workers. Traditional defense companies are increasingly looking to unconventional sources, such as the ailing automotive industry, to find qualified employees familiar with mass production.
Numerous defense companies are struggling to find enough skilled workers to meet the growing demand. For instance, KNDS, a Franco-German tank manufacturer, is aiming to double its annual new hires. According to Gabriel Massoni, a spokesperson for KNDS, the company needs unique expertise that is scarce on the job market. "We cannot produce a Caesar howitzer the same way we produce a Peugeot 308," he explains. However, there are limits to how much wages can be increased, noted Nicolas Chamussy, CEO of KNDS France, to avoid becoming less competitive.
Rheinmetall and Thyssenkrupp Marine Systems are also experiencing growth and are in need of product developers, engineers, welders, and electronics technicians, among others. Italian defense conglomerate Leonardo shares this predicament. Young people are increasingly drawn to other industries, leaving a skills gap in the defense sector.
Recruitment agencies such as Headhunting Factory in Paris are targeting candidates with little or no formal job market experience. Often, potential candidates have never worked with a headhunter or even have a resume. This creates skepticism among them, requiring recruiters to build trust and explain the job opportunities available.
Some defense manufacturers are addressing the skills shortage by establishing their own vocational schools, like the Czech PBS Group. This allows them to train their own employees. PBS Group increased wages by eight percent last year and plans to further increase wages by ten percent by 2025 to attract new personnel.
The struggling automotive industry may offer a solution for those looking to transition. Hensoldt, a supplier of military radar and reconnaissance systems, is open to hiring workers from the automotive sector. These workers are already familiar with just-in-time production, which could support Hensoldt in scaling up production.
In the Czech Republic, ammunition and grenade manufacturer STV Group is benefiting from the troubles in the automotive industry. The company is now able to choose among candidates for the first time in a long while. The Czech PBS Group is also attempting to attract new personnel with enhanced training programs and increased wages.
The European Union is supporting the defense sector with initiatives like the Union of Skills, a strategy aimed at addressing skill gaps. The EU also hopes to bolster the defense workforce through policies and financial instruments that encourage more procurement spending towards domestic suppliers.
Despite these efforts, defense companies face limits to salary increases and intense competition for skilled labor from other industries. Defense companies must also contend with outdated training systems and a fragmented European defense market, which complicates large-scale workforce development.
In summary, European defense companies are tackling the skilled worker shortage through wage increases, enhanced training programs, broadening recruitment efforts, leveraging government initiatives, and expanding production capacities. These strategies are crucial as the sector adapts to increased demand and evolving geopolitical realities.
- Defense companies, such as KNDS, Rheinmetall, Thyssenkrupp Marine Systems, and Leonardo, are turning to unconventional sources like the automotive industry for employing skilled workers to meet the growing demand, recognizing the value of their experience in mass production.
- Traditional defense industries like manufacturing and finance, as well as emerging industries like aerospace, are facing competition for skilled labor, as talented individuals show interest in businesses outside the defense sector, creating a skills gap.
- Some defense manufacturers, like the Czech PBS Group, are establishing vocational schools to train their own workers and offer higher wages to attract new employees, while recruitment agencies are targeting candidates with little or no formal job market experience and looking beyond traditional sources for potential hires.
