News and Trends at DSIA
Defence and Security Industry Association of the Czech Republic (DSIA) was established in 1997. To this date, DSIA is associated with 160 companies. The members' base has rapidly changed since its establishment. For example, 28 new companies joined the DSIA last year.
The DSIA members aren´t only from the armourer companies. Only 10% of the companies are actually engaged in weapons, ammunition and heavy machinery. Most DSIA members are SMEs engaged in various fields, such as ground or aviation technology, CBRN threat protection, electrical engineering, equipment for integrated rescue system units, etc. Among the members, you can find companies specialising in specific industries, such as textile companies engaged in manufacturing military equipment, firms producing flood barriers, field rations, atomic shelters and bunkers or military food packages. Cybersecurity and hybrid threats are gaining increasing importance, along with the integration of artificial intelligence (AI) and new advanced technologies in the defence and security sector. The defence industry did not experience a significant slowdown even during the COVID-19 crisis; however, some companies played a vital role in managing the pandemic. The defence and security industry has demonstrated resilience and adaptability. Despite the onset of the war in Ukraine, it may seem that arms companies are reaping the benefits, but that is not the case. Even large companies cannot increase their production capacities as needed in the current situation. Additionally, there is a shortage of raw materials and materials, and the industry has also experienced significant increases in energy, materials, and transportation costs.
DSIA primarily advocates for its members and promotes their interests both within the Czech market (through agreements with the Ministry of Defense, Interior, Foreign Affairs, Trade, and Industry) and internationally, assisting with exports (which account for 90% of the Czech defence and security industry´s production). This is achieved through numerous events that the association either directly organises or co-hosts, including international exhibitions and trade fairs in Europe, Southeast Asia, the Middle East, and some African countries. Other types of events include industry days, business missions, as well as professional seminars and conferences. DSIA has signed agreements with sixteen associations of similar focus in Europe and around the world.
DSIA is also involved in international scientific and research activities and is highly active in the European Defence Fund, where 8 billion EUR is allocated for defence research for the period 2021-2027. DSIA helps connect Czech companies with foreign partners within the European Union. DSIA holds the position of National Focal Point for the entire Czech Republic in the European Defense Fund. Similar activities take place in cooperation with NATO.
The week before last, DSIA participated as a co-host in the IDET 2023 international defence and security technology trade fair in Brno. The Association coordinated meetings between foreign delegations and Czech companies, facilitating business collaborations. During the fair, AOBP also signed an agreement with the Czech Optical Cluster, aiming to contribute to the development of interdisciplinary cooperation.
For quite some time now, the defence industry has been categorised as socially unsustainable, resulting in most banks refusing to provide services, even basic ones, to companies in this sector. Unfortunately, this situation persists, despite the clear understanding (including due to the situation in Ukraine) that states cannot do without a strong domestic defence industry.
Most of the companies that join the Association are not solely focused on military production but also on civilian or dual-use goods. However, these are companies that have some of their products applicable to armed forces or security forces. One mentioned company is SPECTRASOL, which manufactures cognitive lighting that replaces daylight and has overall beneficial effects on humans. This company supplies lighting, among other things, to the Czech Army and Police and has been a member of AOBP for over a year. Another company, SPACEKNOW, utilizes artificial intelligence to analyze thousands of satellite images in real-time, allowing for the detection of military objects, among other applications. Their software received an award for the most innovative company among approximately 1,500 exhibiting companies at the largest defense exhibition, IDEX 2023 in Abu Dhabi.
Despite the emergence of the latest technologies, conventional warfare to persist (as seen in Ukraine). However, there is a significant increase in the utilisation of unmanned aerial vehicles, particularly drones, and the focus on targeting with the highest precision. With a touch of exaggeration, the goal is not to shoot as much ammunition as possible but to aim with utmost accuracy.
In late April and May, representatives of AOBP participated in a business mission led by Minister of the Interior Vít Rakušan to Senegal, Ghana, and Rwanda. There was significant interest in all three countries regarding border protection, crowd control, and the identification of individuals, particularly terrorists.
Almost every member of AOBP can find connections and opportunities for cooperation in these sectors with members of NCA (National Counterparts Associations). AOBP welcomes the organization of joint seminars, workshops, and other meetings. Collaboration of this nature is already taking place with some members of NCA.
Daniel Svoboda, Defence and Security Industry Association of the Czech Republic (DSIA)