Geopolitical tensions are fueling the Dutch protection business

The disruption on the world stage is resulting in billions in further turnover for Dutch firms. That is evident from a relationship on the nationwide protection business on behalf of the Ministry of Financial Affairs and Local weather, which was despatched to the Home of Representatives in the present day.

A couple of thousand firms are energetic in that sector. They’re concerned within the design, improvement and manufacturing of all forms of tools for the army. In addition they manufacture and design merchandise for the police and investigative providers.

This resulted in a turnover of 4.7 billion euros in 2021. Two years later, that turnover had elevated by three billion, to 7.7 billion euros. In the meantime, Protection spending on tools solely elevated by two billion. Due to this fact the researchers conclude that geopolitical pressure strengthens the rise in turnover.

The businesses themselves count on income to extend additional this yr. To maintain up with development, many are growing manufacturing and hiring further employees.

About half of the weapons and different protection tools goes overseas. Most clients come from Western Europe and the US. A comparatively massive variety of merchandise additionally go to Australia and Asian international locations similar to Malaysia and Singapore. Exports to those international locations declined considerably. The identical applies to exports to the Center East, which additionally contains Israel.

“We did not particularly ask Ukraine,” says researcher Luddo Oh. Within the figures, the nation subsequently falls amongst different European international locations. “However we all know that a number of firms ship there. And plenty of previous stuff from the Ministry of Protection goes there too.”