Human resources is main challenge for the defense industry - head of federation

RIGA - Human resources are the biggest challenge for the defense industry, said Elina Egle-Locmele, Chairperson of the Board of the Latvian Federation of Security and Defense Industries (DAIF Latvija), in an interview with LETA.

She explained that there are certain projects that companies say they cannot take on. Some DAIF Latvija members have orders until 2030, but human resources and smart human resources are a challenge, for example there is a considerable shortage in engineers.

That is why Egle-Locmele believes that conversation is very important, dialogue is important, so that the defense industry knows when and what will be needed.

Asked whether the target of the recently approved Defense Industry and Innovation Support Strategy 2025-2036 to increase the involvement of local industry in the procurement of National Armed Forces (NBS) weapons to 20 percent by 2028 is achievable, Egle-Locmele said that it is achievable, but it is important that it is sustainable.

"We can already establish another 50 companies that will sell foreign products, and in principle we will be supporting Latvian companies. You can also support industry in this way. But we can also talk to those companies that currently have engineers who have invested in the development of drone systems, for example, so that the research capacity there is maintained, so that when we have a clear idea of what the needs of the NBS will be, what is needed can be produced. It is a story of long-term sustainable relationships to strengthen the industry," said Egle-Locmele.

Asked how she assessed the new defense industry and innovation support strategy in general, Egle-Locmele said that it would definitely give a push to development.

Egle-Locmele said that the strategy also takes into account the fact that the European Defense Industrial Strategy was approved last year, and Latvia is not creating something disconnected from the common course.

"Among other things, the European Defense Industrial Strategy sets a clear target that 30 percent should be made up of joint European procurement. If the guidelines for industry involvement in defense are to be updated, then we must in principle have an honest conversation with the Ministry of Defense about where we are going and what we are developing. It is quite clear that this is not all that is possible, because 30 percent we are obliged to buy together with other European countries," said Egle-Locmele.

She admitted that there will be a whole queue of business people who will express their dissatisfaction and say that they can also produce this and that, but some choices will have to be made. It would also allow businesses to avoid investing quite expensive resources where they are not needed.