Impact of Defense Scaling Up on the Technical Labor Market | WFS PRO
Search for your future job

The Department of Defense is scaling up, and the demand for technical capacity is growing along with it

The Netherlands and the rest of Europe are investing heavily in defense. As a result, demand is increasing for items such as fighter jets and helicopters, naval vessels, drones, military vehicles, and the systems and subsystems used in them. This is also driving growth in the need for everything required to develop, manufacture, maintain, and modernize these systems.

An aircraft, naval vessel, or other defense platform does not come from a single factory. Behind every platform lies a broad chain of companies that develop, manufacture, integrate, and maintain components, systems, or subsystems. These include sensors and radar systems, electronics, communication and control systems, embedded software, propulsion systems, and precision components. Aerospace companies, shipbuilders, and high-tech manufacturing firms thus work together to develop the technology and capabilities required for modern defense systems.

That scaling up requires additional technical capacity throughout the entire chain—as well as the engineers needed to build that capacity. 

The Dutch defense industry is growing rapidly

The Dutch defense and security industry is growing rapidly. Defense and security-related revenue rose from 4.7 billion euros in 2021 to 10.2 billion euros in 2025 over a four-year period. According to the most recent study by Berenschot , there are now approximately 1,500 companies active in this sector, spanning the manufacturing industry, high-tech, and ICT. It is striking that about one in five of these companies has entered the sector within the past three years.

This growth is not limited to large defense companies. Many defense contracts are carried out within broad supply chains comprising prime contractors, system suppliers, and specialized subcontractors. They develop and manufacture components, electronics, systems, and complete subsystems. As a result, a single major defense program can create job and growth opportunities for a large number of companies in the supply chain. And there’s more to come. The Netherlands has committed to increasing defense spending to 3.5% of GDP by 2035. According to PwC , this increase offers the Dutch manufacturing industry a potential of approximately 41 billion euros through 2030. To realize that potential, however, Dutch defense production capacity will need to scale up significantly.

Existing Knowledge, New Applications

To achieve that growth, more capacity is needed than the current defense industry alone can provide. Manufacturing and technology companies that primarily serve civilian markets can also play an important role in this regard. Much of the knowledge and technology in fields such as precision engineering, mechatronics, sensor technology, and advanced materials has both civilian and military applications. This is also referred to as dual-use technology. Technology originally developed for, say, a chip manufacturing machine or a medical device can therefore also be relevant for defense applications.

There is significant potential for further expansion of the defense supply chain. Research by Koninklijke Metaalunie and MKB-Nederland shows that more than 3,000 Dutch SME manufacturing companies have a good chance of entering the defense supply chain relatively quickly. By collaborating and pooling their knowledge and production capacity, manufacturing companies can also play a larger role in that chain: from suppliers of individual components to partners for complete systems and subsystems. At the same time, there is a strong focus on technological development. The Ministry of Defense is directing additional investments toward five areas in which the Netherlands has a strong position or aims to build one: intelligent systems, sensors, smart materials, space technology, and quantum technology. It is precisely in these areas that knowledge from the civilian high-tech industry and military applications are converging more and more closely.

More projects, more engineers

More defense programs and contracts also mean a greater need for technical capacity. Systems and products must be developed, engineered, manufactured, integrated, tested, and maintained throughout their lifecycle. This is reflected in employment figures: the number of FTEs directly involved in defense and security activities grew from 18,651 in 2021 to 35,428 in 2025—nearly doubling in four years. This trend translates into a growing need for a wide range of technical specialists, including:

  • Systems Engineers
  • Mechanical and Mechatronics Engineers
  • Electrical and Electronics Engineers 
  • Software and Embedded Software Engineers
  • Integration, Verification, and Validation Engineers
  • Quality and Test Engineers
  • RF, radar, and sensor engineers, including specialists in signal processing and sensor fusion.

Working on defense projects also places specific demands on companies and engineers. These include quality assurance, information and cybersecurity, export controls, and the careful handling of confidential or classified information. As a result, in addition to technical expertise, knowledge of these requirements and experience working in regulated environments are becoming increasingly important.

What does this mean to you?

The growing demand in the defense sector presents opportunities for technical companies, but at the same time poses a capacity challenge. Companies that want to participate in new programs or scale up existing operations need not only sufficient production capacity but also the technical expertise and engineering capabilities to meet the specific requirements of the defense market. New opportunities are also emerging for engineers and technicians. The growth of the defense industry brings with it new projects, collaborations, and complex technical challenges. Experience from sectors such as high-tech, aerospace, and maritime often aligns well with these needs, allowing engineers to apply their existing expertise and further develop it within new applications. 

WFS PRO has a clear role to play in this area. We support companies in the aerospace, high-tech machinery, and marine & offshore sectors in expanding their technical and engineering capabilities. In doing so, we connect technical talent from the Netherlands and the rest of Europe with organizations that want to grow and scale up. In this way, we help companies access the technical knowledge and capabilities they need, where they need them.

As an organization, would you like to know how to scale up your technical capacity? Or, as an engineer, are you curious about the opportunities this development offers? We’d be happy to brainstorm with you.