Defence
Scaling under pressure: meeting demand without losing efficiency and control.
Horn & Company is your partner for industrial scaling in the defense industry.
Current challenges in the defense sector
The European defense industry is undergoing a profound transformation. Geopolitical tensions, rising defense budgets, and technological disruptions are creating new opportunities, but at the same time placing significant structural and operational challenges on companies. The key areas for action include in particular:
Why is the defense industry particularly attractive right now?
The industry is growing structurally — not cyclically. Rising defense budgets, geopolitical tensions, and the push to build resilient supply chains are driving sustained demand growth across all stages of the value chain.
For companies, this means: market entry is more realistic today than it has been in a long time — especially for industrial players with scalable production and engineering capabilities.
How large is the market potential in concrete terms?
Three key figures illustrate the scale:
German defense budget (target level including special fund)
Germany is becoming one of the largest procurement markets worldwide
(Source: BMVg, NATO Defence Expenditure Reports)
European Procurement Volume through 2040
Sustained long-term demand growth with a high degree of planning certainty
(Source: European Defence Agency, market analyses)
Annual Market Growth through 2030 (CAGR)
Above-average growth compared to traditional industries
(Source: SIPRI, Statista)
Where are the greatest opportunities currently emerging in the market?
Growth is not distributed evenly; rather, it follows clear structural patterns:
How Is the Market Structure Changing?
- From one-off projects to scalable series programs
→ Focus shifts to throughput, efficiency, and repeatability - From national to increasingly European procurement approaches
→ Larger programs, more collaboration, higher volumes - From new systems to lifecycle-oriented revenues
→ Modernization, retrofits, and spare parts are gaining importance
What is the central key message?
The defense industry currently offers a rare window of opportunity:
- High, politically backed demand
- Long-term visibility of volumes
- Expanded access to established value creation networks
Targeted performance improvement
How can defense companies scale fast enough — without losing control over cost, quality, and delivery?
Defense companies are under pressure to deliver more, faster, and more reliably than ever before. Rising demand is colliding with limited capacities, fragile supply chains, and slow ramp-ups. The challenge is clear: scale industrial performance while maintaining control.
Four levers determine success: Delivery performance is only as strong as the weakest link in the supply chain. Why do defence supply chains fail to ensure reliable delivery? Leading companies focus on: Result: stable material availability and reliable delivery—even under stress. Scaling output requires more than adding capacity — it demands fundamentally efficient systems. Why do production systems struggle to scale? A high-performance production system is built on: Result: higher throughput, shorter lead times, and consistent quality. Speed to production is a critical competitive factor. What slows down ramp-ups? Successful ramp-ups rely on: Result: faster start-ups, fewer disruptions, and quicker time-to-volume. Operational improvements only deliver impact if the organization can execute. Why do transformations fall short? Effective transformation focuses on: Result: an organization that delivers results—not just initiatives.Resilient Logistics & Supply Chain
Highly Efficient Production
Fast Launch and Ramp-up Management
Organisation & Transformation
If defence companies want to meet rising demand, they must move beyond isolated improvements. End-to-end performance, industrial scalability, and execution discipline are the new benchmarks. Would you like to explore these topics in more depth? Book a free workshop with our experts now. Whether you have initial ideas or concrete plans, we listen, ask the right questions, and develop them further together. In a non-binding initial consultation, we assess your current situation, review available data, and show how to turn it into a solid, data-driven basis for decision-making.Prepared for the defence sector?
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Project Insights: Measurable Results for Our Clients
Experience in Resilient Logistics & Supply Chain
We strengthen supply chains holistically to increase security of supply, optimize inventories, and ensure responsiveness in volatile environments.
Holistic Optimization of the Order Fulfillment Process
// Focus: Reducing Capital Tie-Up Through Inventory Minimization
Project Scope:
- Definition and implementation of performance metrics, including an early warning system for project management, development, and production
- Establishment of an order control center to manage value streams and material availability
- Redesign of the order fulfillment process in project management, including organizational and process optimization
- Optimization of the product development process, including maturity level and configuration management
Project Results:
– 23 % reduction in inventory
Design and Implementation of a Logistically Optimized Factory
// COMMERCIAL VEHICLE MANUFACTURER
Project Scope:
- Holistic optimization of production and logistics systems
- Introduction of value stream–based control and modern production logics (pull, self-regulation)
- Realignment of supply chains and production structures
- Improvement of efficiency, quality, and customer orientation in production
Project Results:
- − 21 % reduction in labor costs
- − 90 % reduction in lead time
- − 47 % reduction in inventory
- − 8 % reduction in space requirements
- + 4.1 percentage points increase in operating profit
Development and Implementation of an Efficient Supplier Network (Customer/Plant/Suppliers)
// SUPPLIER FOR AUTOMOTIVE AND SPECIAL VEHICLES
Project Scope:
- Implementation of a sales-driven supply chain strategy within the European production network
- Introduction of modern control logics (pull) and customer-oriented segmentation
- Reduction of lead times and increase in supply chain stability
Project Results:
- + Increase in delivery capacity from 20 % to 97 %
- − 45 % reduction in inventory
- − 50 % reduction in lead time
Experience in Highly Efficient Production
We enhance the performance of production systems through lean processes, optimized material flows, and a consistent focus on efficiency and quality.
Entwicklung eines schlanken Montagekonzepts
// MULTI-ROLE FIGHTER AIRCRAFT
Project Scope:
- Concept for improving maintenance of critical assets
- Knowledge management
- Independent assembly line with optimized material flow and logistics handling
- Optimization of Overall Equipment Effectiveness (OEE)
Project Results:
- − 40 % reduction in lead time
- + 30 % increase in productivity
- + 20 % improvement in OEE
- − 8 % reduction in space requirements
- − 15 % reduction in maintenance costs
Design and Implementation of a High-Performance Production System
// AEROSPACE (MANUFACTURER OF COMPONENTS AND PARTS)
Project Scope:
- Establishment of a high-performance production system based on value stream optimization
- Introduction of modern production and material control systems (pull, Kanban)
- Improvement of efficiency, ergonomics, and flexibility in the assembly organization
Project Results:
Quick Wins:
- + 25 % increase in productivity
- − 50 % reduction in lead time
Final Concept:
- + 30 % increase in productivity
- − 60 % reduction in lead time
Implementation of a High-Performance Production System
// SANITARY CABIN MANUFACTURER
Project Scope:
- Design and implementation of a high-performance production system
- Structuring of production through segmentation and value stream design
- Design of the material flow and logistics architecture, including supply structures
- Establishment of a value stream–oriented organization, including a skills and qualification model
Project Results:
- − 61 % reduction in lead time
- − 50 % reduction in total inventory
- − 62 % reduction in transports
- + 28 % increase in productivity
Experience in Fast Launch and Ramp-up Management
We accelerate production launches and ramp-ups through structured planning and a consistent focus on time-to-market.
Establishment and implementation of a production system for pre-production and assembly
// AGRICULTURAL MACHINERY MANUFACTURER
Project Scope:
- Development of an assembly system for a product launch
- Introduction of takt-based line assembly and value stream–oriented structures
- Optimization of assembly, layout, and logistics processes
- Derivation of a holistic implementation plan
Project Results:
- + 65 % increase in output
- + 25 % increase in workforce productivity
- − 70 % reduction in inventory size
Experience in Organisation & Transformation
We enable organizations to implement change sustainably through clear structures and targeted employee development.
Einführung eines agilen Produktentstehungsprozesses
// AEROSPACE COMPANY
Project Scope:
- Establishment of a PMO, including governance, reporting, and escalation structures
- Target costing, as well as effort and cost controlling
- Multi-level reporting system for program and project management
- Implementation of a new organizational structure, including employee enablement
Project Results:
− 30 % reduction in one-time costs
Optimierung des E2E-Auftragsabwicklungsprozesses
Project Scope:
- End-to-end analysis and optimization of order fulfillment
- Development of a target vision, business case, and governance structures
- Implementation using a Kaizen approach and cross-functional teams
- Sustainable anchoring through a KPI system and employee enablement
Project Results:
- Creation of process transparency as a foundation for global growth and ERP implementation
- Establishment of clear roles and responsibilities along the order fulfillment process
- Foundation laid for sustainable growth
Design to Cost als elementarer Bestandteil im Produktentstehungsprozess
// AEROSPACE COMPANY
Project Scope:
- Analysis of existing structures and processes in product development
- Total cost analysis compared to the planned target budget
- Identification of cost drivers (NRC and RC)
- Development and prioritization of cost-saving potentials
- Support in the implementation of design-to-cost measures
Project Results:
- − 34 % reduction in total costs
- − 40 % reduction in investment costs
Implementierung einer prozessorientierten Organisation
// SUPPLIER OF INJECTION SYSTEMS FOR LARGE AND NON-COMMERCIAL DIESEL ENGINES
Project Scope:
- Further development of the process organization toward an integrated process team model
- Analysis and optimization of core processes and activity structures
- Design of a target-oriented organizational model
- Evaluation of capacity, resource, and skill requirements
- Definition and implementation of a comprehensive implementation plan
Project Results:
- Establishment of end-to-end responsibility within process teams
- Integration across regions and organizational units
- Increased team flexibility
- Reduced lead times and inventory
Meet our defence experts
We combine extensive C-level retail expertise with consulting experience to develop actionable solutions for your business.
Strategic Insights for the Defence Industry
In our publications section you will find further blog articles as well as personal expert assessments and practical white papers with valuable insights.
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