Europe's defense industrial base stands at a critical inflection point. Military experts warn we have just three to five years to strengthen Europe's defense capabilities before facing potentially devastating security challenges.

I talked about these trends and the European response with Kitron Group's President and CEO, Peter Nilsson and Managing Director of Kitron AS, Hans Petter Thomassen, who participated in the “Implementation Dialogue on EU Defence” with Commissioner Andrius Kubilius, held in Brussels recently.

The European Commission recognizes this urgency. They've initiated an "omnibus" bill aimed at helping defense manufacturers ramp up production quickly, bringing together industry leaders from major prime contractors to innovative startups developing cutting-edge battlefield technologies. But the challenges are enormous.

Most electronics components, semiconductors, and specialized materials used in European defense systems come from outside the continent. While stockpiling strategic materials for several years provides a short-term solution, the long-term challenge of rebuilding secure supply chains remains daunting. For specialized materials like munitions chemicals, new production facilities require five years just for permitting and environmental studies.

Regional responses vary dramatically across Europe. Countries feeling immediate threat – the Nordics, Baltics, Poland, and Germany – are leading with bold procurement initiatives and defense budgets approaching 5% of GDP. These long-term commitments provide the certainty manufacturers need for major capacity investments.

Perhaps most exciting is the rise of defense technology startups across Eastern Europe. From drone innovations to laser targeting systems, these companies bring battlefield-ready solutions developed with real-world urgency. As one Ukrainian defense official emphasized: "A system you can provide me two years from now has zero interest – I need something for tomorrow."

The war in Ukraine accelerates these trends, serving as both catalyst for action and testing ground for technologies. Defense donation programs deliver immediate battlefield feedback on new systems, strengthening the innovation cycle.

Want to explore how these defense industry transformations might affect your business? Join us at the upcoming IPC defense event in Brussels on June 10th, where industry leaders will be tackling these critical challenges head-on.

MADE IN EUROPE is a Global Electronics Association podcast hosted by Philip Stoten and produced and published by SCOOP. For more information on Global Electronics Association visit https://www.electronics.org/

NOTE: This show was recorded on April 8th, days after President Trump's "Liberation Day" Tariffs had been announced, but before a 90 day pause was applied to those same reciprocal tariffs, apart from those on China. The comments and opinions reflect this point in time.

Sweeping tariffs, supply chain disruptions, and geopolitical tensions have manufacturers worldwide questioning their next move. What happens when no one can predict tomorrow's trade landscape?

In this premiere episode of MADE IN EUROPE, an IPC Podcast, host Philip Stoten dives deep with Bo Lybaek of GPV Group A/S and Markus Aschenbrenner of Zollner Elektronik AG into the challenges facing EMS companies and their customers as they navigate the unpredictable waters of global trade tensions. Far from just reacting to headlines, these industry leaders reveal their strategic approaches to uncertainty.

"Most important thing is to stay calm, follow what is happening, and be agile when needed," shares Bo Lybaek, capturing the measured response many manufacturers are taking while awaiting clarity. Yet beneath this wait-and-see approach lies sophisticated preparation – from comprehensive supply chain data modeling to strategic global footprint development that has been years in the making and continues to be an imperative.

The conversation reveals how current disruptions are accelerating an existing trend toward "region for region" manufacturing – a localized approach that provides greater resilience against cross-border complications. Both Bo and Markus offer fascinating insights into how they've built truly global operations that maintain agility through shared equipment platforms, standardized processes, and most importantly, consistent corporate culture.

Perhaps most compelling is their perspective on Europe's position in this changing landscape. As Markus Aschenbrenner notes, "We need a strong European Union with real value for others to negotiate with." This includes not just the recently announced infrastructure investments, but critically, reducing bureaucracy that hinders competitiveness.

Join us for this thought-provoking discussion that goes beyond tariff headlines to explore how leading manufacturers are building resilience in uncertain times. Subscribe to MADE IN EUROPE now to hear more insights from European manufacturing leaders in future episodes.

MADE IN EUROPE is a Global Electronics Association podcast hosted by Philip Stoten and produced and published by SCOOP. For more information on Global Electronics Association visit https://www.electronics.org/

The landscape of European electronics manufacturing is undergoing substantial shifts as geopolitical tensions rise and tariff uncertainties loom large. In this revealing conversation, NOTE CEO Johannes Lind-Widestam and Kitron CEO Peter Nilsson share their frontline perspectives on navigating these turbulent waters while maintaining the exceptional performance that has become synonymous with Nordic EMS providers.

As tariffs and regional manufacturing requirements reshape global supply chains, both leaders offer pragmatic insights into the challenges ahead. Despite the push for regionalization, the specialized nature of electronic components means complete supply chain localization remains impractical. "Everyone talks about how fast it is to move a factory," Johannes notes, "but if you want to move the electronic production that the US is making in China, that's going to be an enormous investment."

As the conversation switches gear to the topic of Nordic EMS Exceptionalism, we examine why Nordics companies consistently stand out for their resilience, profitability, and customer relationships. Scandinavia is the most outsourced market in Europe by some distance, but what exactly drives these advantages? Our guests peel back the curtain on the unique cultural factors that have positioned companies like Note and Keytron at the forefront of the industry.

"I think there is no secret formula," Johannes reflects, "it's a dedication to do things better and better, to never become complacent." This philosophy of continuous improvement permeates the entire ecosystem, from management approaches to factory floor operations. Peter adds that when American customers visit their Swedish factories, they frequently mistake production operators for senior engineers – a testament to the depth of talent and problem-solving capability built into their workforce.

The conversation reveals how the region's manufacturing heritage, stemming from telecom giants like Ericsson and Nokia, created not just technical expertise but a distinctive approach to business relationships. Unlike more protective manufacturing cultures found elsewhere in Europe, Scandinavian companies embrace openness and partnership. This cultural orientation creates sticky, strategic relationships with customers rather than merely transactional ones.

Discover why cultural factors and leadership approaches may ultimately determine which manufacturers thrive in this uncertain environment, and why the Scandinavian model offers valuable lessons for the broader electronics industry.

MADE IN EUROPE is a Global Electronics Association podcast hosted by Philip Stoten and produced and published by SCOOP. For more information on Global Electronics Association visit https://www.electronics.org/

What happens when founders decide legacy matters more than an easy exit? I sat down with Eurocircuits’ Founding Partner Dirk Stans to unpack a deal that keeps the company’s engineering DNA intact while unlocking the resources to scale. Instead of becoming the 'fifth wheel' of a sprawling industrial group, Eurocircuits becomes the strategic core of a new platform—built around its digitally native approach, dense customer orchestration, and hard-won process IP.

Dirk and I explore the road to the partnership with Avedon Capital Partners: early talks with industrial buyers who didn’t quite grasp the uniqueness of the model, a healthy skepticism about private equity, and then a meeting with a team whose long-term thesis matched the founders’ own plan. This isn’t a three-to-five-year flip. It’s long-horizon thinking that respects continuity for 750 employees and thousands of customers. Day one, nothing breaks: management stays, customer interfaces stay, supplier relationships stay. What changes is pace, ambition, and the confidence to start a multi-year strategy knowing a thoughtful handover is built in.

We also dig into why private equity is active in EMS despite modest EBITDA margins. Many EMS firms are self-financed and generate steady cash, and the category offers predictable mid-single-digit growth. But Dirk argues the essential point: finance should serve technology, not lead it. The real job isn’t trading components; it’s building reliable electronics with deep process understanding. That focus has kept Eurocircuits ahead, and with aligned capital, they aim to scale without losing what makes them special. If you care about succession, platform-building, and keeping engineering at the center of manufacturing, this conversation offers a clear, practical blueprint.

If this resonated, follow the show, share with a colleague, and leave a quick review—what’s your take on PE as a force for long-term industrial growth?

MADE IN EUROPE is a Global Electronics Association podcast hosted by Philip Stoten and produced and published by SCOOP. For more information on Global Electronics Association visit https://www.electronics.org/