Rheinmetall: Economic miracle in North Rhine-Westphalia thanks to the arms boom!

Rheinmetall: Economic miracle in North Rhine-Westphalia thanks to the arms boom!

The economy in North Rhine-Westphalia is showing impressive signs of recovery, significantly supported by the arms manufacturer Rheinmetall. Loud fr.de Rheinmetall's booming business is due to geopolitical tensions, particularly Russia's war of aggression against Ukraine. With full order books, the company offers numerous employment opportunities and is therefore becoming the region's central economic engine.

The latest reports from the RWI - Leibniz Institute for Economic Research paint a positive picture of the economic prospects in North Rhine-Westphalia; after a decline in economic output of 0.4 percent in 2023, slight growth of 0.1 percent is forecast for 2025. Against this background, growth could even be 1.5 percent next year. This development is being positively influenced by increasing federal spending, which promises to provide stimulus of up to 0.5 percent of GDP per year.

Rheinmetall and the future of the company

Rheinmetall expects an order boom that could reach a potential of 300 to 400 billion euros by 2030. Company CEO Armin Papperger recently explained that this increase in defense spending is a response to the threat from Russia and pressure from the United States, which is encouraging Europe to strengthen its defense capabilities. In this context, European NATO states plan to increase their defense spending to 2.5 to 3.5 percent of their economic output.

Rheinmetall's economic successes are also visible in the annual balance sheet figures: The company reported a sales increase of 36 percent to 9.8 billion euros and an operating profit that rose by 61 percent to 1.5 billion euros. In addition, Rheinmetall shares have reached a high and are approaching the 2,000 euro mark.

Personnel expansion and strategies

Given the strong growth, Rheinmetall plans to increase its workforce by 20 percent and create around 8,000 new jobs over the next two years. The number of employees could increase from the current 32,000 to 40,000. At the headquarters in Düsseldorf, several civilian production facilities are to be converted to arms production. While the exact details of these changes are still unclear, it is already stated that Rheinmetall may also acquire additional locations and companies.

NRW Economics and Climate Protection Minister Mona Neubaur emphasizes the importance of defense capability and describes NRW as a key area for technologies in security architecture. The planned opening of a new factory in Weeze to produce components for the US F-35 fighter jet highlights Rheinmetall's role as a major player in the defense industry.

In addition, Rheinmetall will pay trade taxes in Düsseldorf, which are estimated at almost three million euros for 2023. There are currently 1,500 employees at the Neuss site who work on the development and manufacture of components for the automotive and hydrogen sectors. The strategic conversion of the Pierburg subsidiary in Neuss to defense production shows Rheinmetall's long-term commitment in this area.

With these developments, Rheinmetall could not only sustainably strengthen its own company, but also the entire economy in North Rhine-Westphalia.