Europe’s defense markets are currently experiencing an exceptional buzz. Russia’s attack on Ukraine has accelerated demand for weapons and defense systems. NATO countries have committed to increasing their defense spending by billions of dollars. This means a huge opportunity for Finnish subcontracting companies to enter these long-term growth markets with their own products and services – but not just anyone can get in.
Why now?
The defense industry’s subcontracting ecosystem is built around large system integrators. Alongside the prime contractor, the ecosystem includes a large number of SME subcontractors who supply components, electronics, software, and maintenance services for the prime contractor’s products or services. Since the lifecycle of systems is long—often 20–30 years—a good subcontracting relationship is frequently the foundation for long-term growth and ensures favorable development of company value. Growing markets need more subcontractors.
What do companies need to do?
Success requires three things:
1. Meet the requirements. Without defense-sector certifications, security clearances, and compliance with standards (AQAP and ISO), as well as knowledge of regulations (ITAR/EAR), there is no access to competitive bidding. Personnel reliability checks must be carried out. Obtain an NCAGE code for your company so you can study demand and supply in the defense markets. FOC can assist with this.
2. Network boldly. Subcontracting chains are born from relationships. Domestic networks and international trade fairs (e.g., Eurosatory) open doors to major projects.
3. Offer added value. Successful companies don’t just sell products or services. They also sell solutions that can improve usability, cybersecurity, and security of supply.
An opportunity not to be missed
Finnish companies have an excellent competence base, a high level of technology, and trusted networks. Right now is the time to enter defense industry value chains. The fast will truly outpace the slow—and in doing so, open the way for their own business growth.
Want to learn more?
The Subcontracting Trade Fair and the Finnish Operations Center will host the seminar Alihankinta goes NATO 2.0 on Thursday, October 2, 2025, during the Subcontracting Trade Fair. The seminar is open to all exhibitors. See more details and register here:
https://www.lyyti.fi/reg/ahgoesnato2
