Challenges of Ramping-Up Defence Production Capacity

In response to the Russian war of aggression against Ukraine and its impact on the European security 
landscape, it has become imperative for EU and NATO members to ramp up their defence production 
capacities. Ramping up defence production capacity is a meticulous and complex process that requires careful long-term planning and consideration of various factors to ensure its success and efficiency. To achieve this, companies must invest in creating new production lines or expanding the existing ones, as well as identify the best way for storage and distribution. Additionally, they need to recruit and train new personnel to handle increased production demands. Investing in human resources is crucial for maintaining operational efficiency and quality during the expansion phase.

In this context, it is essential to make a distinction between augmenting the pace of manufacturing, 
measured by the number of systems produced within a specific timeframe, be it monthly or yearly, and 
enhancing the speed of delivery. These two facets necessitate the utilization of distinct levers and means to achieve their respective goals. Increasing production pace may involve process streamlining, 
automated workflows, and workforce expansion. On the other hand, boosting delivery speed may 
demand improvements in logistics, transportation efficiency, and supply chain management. 
In any case, the ramping up of production necessitates important investments that are particularly
challenging for privately owned companies which must carefully consider financial and entrepreneurial 
risks. In the following paper, we will describe some of these challenges and risks.