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NATO’s role in defence industry production

NATO plays an important role in helping Allies develop their military capabilities, including weapons systems, vehicles and other major equipment. Developing these capabilities is a national responsibility, but NATO’s coordination helps its members identify and procure the equipment they need to defend themselves and their Allies at all times, including by leveraging economies of scale. It also ensures that national systems are able to integrate seamlessly and work together when needed. Working together with the defence industry is vital to these efforts.

Boosting investment in defence production

Throughout NATO’s history, Allies have invested in defence production to ensure that they have the capabilities they need for deterrence and defence, with spending and production levels rising or falling according to changes in the broader security environment. For example, when the Cold War ended, most military budgets fell. After the 9/11 attacks, Allies invested in capabilities focused on domestic counter-terrorism measures and out-of-area operations in the Middle East. And following Russia’s illegal annexation of Crimea in 2014, Allies raised their investment in territorial deterrence and defence capabilities, to address the increased threat from the east.

Since Russia’s full-scale invasion of Ukraine in February 2022, NATO Allies have further stepped up investments in defence production – both to increase their own capabilities for deterrence and defence, and to replenish the stockpiles that have been depleted by their support to Ukraine. Over the past year in particular, Allies have made significant progress in boosting industrial capacity and ramping up production, including by:

  • adopting or updating their national defence strategies and passing the necessary legislation to improve defence industrial cooperation and government-to-industry relationships;
  • reviewing national defence procurement processes to identify how and where to compress timelines for acquisition and support more collaboration with Allies;
  • making targeted investments in industrial defence production, focusing on reactivating or opening new production lines for ammunition and explosives;
  • placing major, long-term contracts to bolster their defence capabilities, with significant investments in capabilities such as multi-role fighter aircraft, helicopters, uncrewed aerial systems, main battle tanks, infantry fighting vehicles, battle-decisive munitions, and air and missile defence systems; and
  • participating in joint procurement and capability development initiatives, including bilateral defence cooperation agreements.

In the same timeframe – from the 2023 Vilnius Summit to the 2024 Washington Summit – the NATO Support and Procurement Agency has assisted Allies in the delivery of over EUR 1 billion of battle-decisive munitions, including 155mm munitions, 120mm mortar munitions and surface-based air and missile defence missiles.

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About Argus Defence

Established in 1998 with domestic funding, ARGUS focuses on enhancing personal safety and environmental awareness. Invested over 1 million dollars in R&D,  delivered about 200,000 products through approximately 400 contracts both domestically and internationally since 2000.

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