Entering the Nordic Defence Supply Chain: Key Takeaways from Elmia Subcontractor 2025

As defence investments continue to accelerate across Europe, manufacturing companies are increasingly exploring opportunities in the defence supply chain. Export Maker recently attended the Elmia Subcontractor fair in Jönköping, Sweden, one of the most important industrial meeting points in Northern Europe. While there, we joined two insightful sessions focusing on Sweden’s defence market and Saab’s rapidly growing supplier ecosystem.

Here are the key highlights and reasons why now is a strategic time for suppliers to take a closer look at Nordic defence collaborations.

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A CHANGING MARKET: NEW REQUIREMENTS AND NEW GROWTH

Sweden’s defence market is undergoing rapid transformation. The demand for secure, reliable and innovative suppliers is rising, driven by higher procurement volumes, tighter delivery expectations and stronger requirements for cyber- and information security.

For suppliers, success starts with understanding the procurement processes, licensing obligations and the broader defence ecosystem before approaching potential customers. Entering this market requires patience, but those who invest time early on can secure a strong, long-term competitive advantage.

Although defence procurement is often associated solely with weapons systems, only about 50% of acquisitions today are classified as military equipment. The remaining half consists of dual-use technologies – products or components that can serve both civilian and military purposes, creating opportunities for a wider range of capable industrial companies.

Large system integrators, such as Saab and BAE Hägglunds, manage major defence deliverables and rely on competitive subcontractors across the manufacturing chain. Building relationships and visibility in networks is essential. As SOFF’s Secretary General Robert Limmegård highlighted:

“Be present where the industry meets. That’s where you learn what is really needed.”

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WHO’S WHO IN THE SWEDISH DEFENCE ECOSYSTEM?

A quick guide to the key organisations and processes:

• • Swedish Security & Defence Industry Association (SOFF)
    Represents Swedish defence and security companies and helps improve their market conditions, export capabilities and industry collaboration opportunities.
  • Informationssäkerhetsdeklaration (ISD)
    A national framework ensuring that defence-related technology, data and material remain protected. Suppliers must declare what is delivered, when, and in which quantities, enabling secure traceability and compliance.
  • Försvarets materielverk (FMV)
    Sweden’s Defence Materiel Administration. FMV conducts procurement on behalf of the Armed Forces, sets security and information-handling requirements, and ensures suppliers and supply chains meet safety and risk-management standards.

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SECURITY AND COMPLIANCE: CRITICAL TO EVERY DEFENCE PARTNERSHIP

A supplier’s readiness is evaluated not only by cost and quality, but also by security maturity:

✔ Secure documentation handling and approved data platforms (no production drawings over email)
✔ Personnel vetting and security clearance when required
✔ Traceability of software components and origin of materials
✔ Well-defined delivery capability and risk management

Contracts may include strict penalties if a product fails to meet security or availability requirements, reflecting the critical nature of defence deliveries.

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FUTURE INVESTMENTS: A NEW NORMAL FOR DEFENCE BUDGETING

Sweden’s defence budget has grown from just over 1% of GDP in the early 2010s to 2.4% in 2024, aiming for 5% by 2035. While political decisions influence investments, the long-term trend is clear: defence spending is not temporary, it is stabilising at a significantly higher level.

Both domestic and international sourcing will expand and reciprocal trade agreements, such as the recent UK-Norway frigate deal, show how industrial cooperation can strongly influence procurement choices.

Notably, unlike Finland or Norway, Sweden has no state-owned defence manufacturers, creating broad opportunities for private-sector suppliers.

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SAAB SURVEILLANCE: GROWING FAST, TOGETHER WITH SUPPLIERS

The second session focused on Saab Surveillance and its impressive growth: 23% organic growth in 2024. To keep up with demand, Saab has made dramatic operational shifts:

“We must be innovative not only in technology, but in how we organise.”

Key points impacting suppliers:

• • High delivery speed and serial production capability
    • Saab moved from manually producing 1–2 radars per month to full-scale output from two factories within a year, ensuring security of supply.

• • Suppliers scale with Saab
    • Stock availability, quality certifications and dedicated production capacity are increasingly required even before orders are placed.

• • Transparency and communication are essential
    • Saab now shares production forecasts with key suppliers and invests in joint team workshops, even hosting factory-floor town hall meetings with supplier personnel to align goals and accelerate improvements.

• • Collaboration reduces risk
    • Co-development, shared operational planning and quick engineering change processes strengthen the entire supply chain.

The message is clear: Suppliers are no longer simply vendors, they are strategic partners driving innovation and resilience.

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WHAT DOES THIS MEAN FOR NORDIC MANUFACTURING COMPANIES?

Opportunities are expanding, but so are expectations. To succeed in the defence sector, companies must:

➡ Understand procurement structures and compliance requirements
➡ Invest in secure data handling and traceability systems
➡ Demonstrate delivery reliability and scalability
➡ Engage early in networks and partnerships

When approached strategically, entering the defence supply chain can provide long-term, recurring business with high-value products and strong global export potential.

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