Becoming a supplier to the defence/armaments industry

The German defence industry has a hierarchical structure. At the top are the prime contractors — Rheinmetall, KNDS (KMW + Nexter), Hensoldt, Diehl Defence — which supply the Bundeswehr and NATO partners directly as tier 1 suppliers. Below them are tier 2 suppliers, which supply subsystems and assemblies, and tier 3 suppliers, which provide components, materials and services. For specialised medium-sized companies — in refractory construction, for example — entry as a tier 2 or tier 3 supplier is the realistic option.

• Tier 1 (prime contractors): Rheinmetall, KNDS, Hensoldt, Diehl Defence, ThyssenKrupp Marine Systems, Airbus Defence — direct contract partners of the Bundeswehr
• Tier 2 (subsystem suppliers): specialised medium-sized companies with their own system expertise — for example in drive components, optics or electronics
• Tier 3 (component suppliers): suppliers of materials, parts and services — this is where refractory specialists position themselves
• Tier 4 (raw material suppliers): base materials, standard parts, merchandise

Entering the defence industry takes more than good products. The prime contractors expect their suppliers to hold a defined set of qualifications that go beyond what is usual in civil industry. The good news: many requirements can be built up step by step, and the first contract does not have to demand the full scope of qualification straight away.

• Certified QMS: ISO 9001 as a minimum, ideally with AQAP conformity or AS9100D
• Technical expertise: demonstrable experience in the required technology — references from demanding industrial sectors count
• Ability to deliver: capacity for on-time delivery, including for short-notice call-offs and series production
• Confidentiality: willingness to maintain secrecy and, where applicable, to undergo the security clearance procedure for classified contracts
• Financial stability: proof of creditworthiness — prime contractors assess the economic performance of their suppliers
• Location: production in a NATO member state, ideally in Germany — relocating production to third countries is viewed critically

The route to becoming a defence supplier runs through several parallel activities: building qualifications, networking and active business development. There is no central registration body — access is via the purchasing departments of the prime contractors, via industry associations and via trade fairs.

• Prime contractors' supplier portals: Rheinmetall, KNDS and others operate online portals for supplier registration — registering is the first step
• BDSV (Federation of German Security and Defence Industries): membership opens up access to networks, events and information
• Eurosatory, IDEX, Enforce Tac: leading trade fairs for defence technology — direct contact with buyers and engineers from the prime contractors
• Chambers of commerce and economic development agencies: regional initiatives such as the Forum Wehrtechnik or defence clusters provide contacts
• Direct approach: identify the technical buyers at the prime contractors (LinkedIn, specialist conferences) and approach them specifically — with a concrete technical offering

Building up the capability to supply the defence sector is a strategic project that takes 18 to 36 months. A realistic timescale allows for certifications, networks and technical evidence to be built up in parallel. The following roadmap provides guidance for medium-sized companies approaching market entry systematically.

• Months 1–6: strategic analysis, definition of target markets, starting ISO 9001 certification or extending an existing one to cover defence requirements
• Months 3–12: building networks, BDSV membership, first trade fair visits, registration in supplier portals
• Months 6–18: initiating the security clearance procedure (if required), preparing first articles and technical documentation
• Months 12–24: submitting first quotations, sample deliveries, qualification audits by potential customers
• Months 18–36: first series contracts, building up series delivery capability, demonstrating AQAP conformity

Entering the defence industry carries specific risks that medium-sized companies need to understand and manage. Long qualification cycles, political dependencies and strict compliance requirements call for realistic expectations and careful planning.

• Long lead-in times: it often takes 2 to 5 years from initial contact to a series contract — financial staying power is essential
• Political risks: export licences can be delayed or refused, and budget decisions can postpone procurement programmes
• Compliance complexity: mistakes in export control or security clearance can have criminal law consequences
• Dependency: excessive concentration on a single client or programme creates cluster risks
• The dual-use trap: products that have previously been exported freely can become subject to licensing through defence use