Arms producers in Central Europe scramble for workers as Ukraine war expands business

The biggest boom since the end of the Cold War has the arms industry in Central Europe looking for innovative solutions.

After the Ukraine war increased demand for their products, weapons manufacturers in Poland and the Czech Republic are starting or expanding programs to recruit and train new workers. These countries currently have some of Europe's tightest labor markets.

Since the fall of the Berlin Wall, the Central European arms industry has been producing weapons, ammunition, and other military hardware at an accelerated rate. Companies are stepping up production to meet demand in the domestic market as well as the international market as nations increase their defense spending.

Consider STV Group, a manufacturer of ammunition and shells for artillery. According to the company's chairman, David Hac, it has reached an agreement with the municipality closest to its largest plant in Policka, about 200 kilometers (125 miles) southeast of Prague, to construct apartments at company expense for new hires.

The company has also started serving retired employees meals at the canteen so they can exchange information about recently restarted lines producing Soviet-era ammunition for Ukraine, he continued.

According to Eurostat data, the Czech Republic and Poland have some of the lowest unemployment rates in the European Union, with 2.7% for June and 5.9% for the same period, respectively.

According to Jiri Hynek, president and executive director of the Czech Republic's Defense and Security Industry Association (DSIA), a labor shortage could drive production out of central Europe. He predicted that Czech businesses could increase production by up to 20% if they had enough labor and resources.