Due to the Russian war of aggression in Ukraine, many states are now arming themselves. Defense companies benefit from this, also around Lake Constance.
Global military spending topped $2 trillion for the first time in 2021. This emerges from a report by the Stockholm Peace Research Institute (SIPRI). This number is expected to be surpassed in the coming years, after many countries have already announced that they intend to increase their military spending. The trigger for this was the Russian war of aggression in Ukraine.
China is also massively arming
With annual expenditures of $801 billion (€735.74 million), the US continues to spend far more on armed forces and armaments. China comes in second with an estimated $293 billion. The United States accounted for 38% of global spending. However, in the case of the United States, there has been a real decline of 6.1% since 2012 and 1.4% since 2020. According to SIPRI, this reduction is mainly due to rising inflation in the US and the withdrawal from Afghanistan in 2021. Beijing is likely to have increased its spending by 72% since 2012.
Turkey increases military spending
Other strong increases in military spending over the past nine years can be seen in Turkey (63%), Finland (50%) and Greece (54%). Ukraine (142 percent), in whose eastern regions a civil war has been raging since 2014, and Romania (161 percent) reached absolute maximums. However, in the year before Russia invaded Ukraine, Kiev’s military spending dropped by 8.5%.
Defense industry around Lake Constance
Numerous armaments companies located around Lake Constance are also likely to benefit from increased military spending. The internet blog “waffenvombodensee” lists 20 companies and counts at least a dozen smaller suppliers. Only in Vorarlberg are there no armaments factories. This means that the “Ländle” is a white dot on the map.
From wheeled armor to software
The list and range of products is extensive: Royce Power-Systems / MTU in Friedrichshafen manufactures engines for combat and armored vehicles, howitzers and warships. General Dynamics European Land Systems in Kreuzlingen produces, among other things, armored vehicles and bridge systems for military use. For example, Diehl Defense in Überlingen has land, air, sea and artillery guided missiles in its portfolio. But not only weapons are manufactured, but also hardware and software components that are used in military systems and vehicles.
Rheinmetall: main battle tanks for the Ukrainians
The Düsseldorf Rheinmetall armaments group also has a location in the Lake Constance area, namely in Stockach. Rheinmetall has now offered to deliver 88 used Leopard main battle tanks to Ukraine. This follows from documents available to the German Press Agency. Accordingly, the offer also includes crew training in Germany, training for repairs, tools, spare parts, service base and ammunition.
KMW: 100 self-propelled howitzers to Ukraine
And according to “Welt”, the Konstanz-based weapons company Krauss-Maffei Wegmann (KMW) also wants to deliver 100 2000 tank howitzers. These heavy artillery pieces can hit targets 40 kilometers away.
Armament stockpiles are trending: the deal with death
And rising gun spending is also taking a toll on the stock market. While people are losing their lives in Ukraine and other trouble spots around the world in these minutes, the death business is also thriving on the stock market. Brokers are registering a growing demand for armaments stocks. Arms stocks were despised on the stock exchange two years ago, but investors are now increasingly focusing on the arms industry: Google requests for those stocks alone have increased by 1,500%.