The critical role of artillery is underscored by Ukraine's ongoing efforts to defend its territory. The artillery ammunition used by the Ukrainian defense forces is supplied by countries that donate from their own defense depots. Consequently, as these countries donate to Ukraine, they must replenish and expand their own ammunition stocks in response to the deteriorating security situation. This has led to an unprecedented demand for grenades and ammunition, far exceeding the available supply capacities. In response, the European Union has initiated the "Act in Support of Ammunition Production" (ASAP) to enhance ammunition production within Europe. This initiative permits states to invest in grenade and ammunition manufacturers without such investments being classified as state subsidies. Additionally, it allows for direct procurements, circumventing the regulations associated with public procurement processes. European grenade and ammunition manufacturers have long had their order books filled, preventing them from meeting the immediate demands of various defense forces and states wishing to donate/supply ammunition to Ukraine. These predominantly privately-owned manufacturers have shown reluctance to invest in increased production capacities without a guarantee of long-term demand that would ensure financial viability. Furthermore, manufacturers face challenges beyond investment hesitancy, including shortages of raw materials and critical components such as primers, gunpowder, and explosives. Thus, any increase in ammunition and grenade production volumes necessitates a corresponding expansion in the supply chain capacity. Additional concerns include securing a skilled workforce and obtaining permits and land for new manufacturing facilities. In essence, while the EU's initiative is essential for establishing the conditions for increased production capacity, tangible results from this investment will take time to materialize. Ongoing instances of forced ammunitions manufacturing have resulted in subpar quality, underscoring the need for stringent quality control and highlighting the demanding nature of ammunition manufacturing. Two critical considerations arise when states provide support to enhance ammunition and grenade manufacturing capabilities: the specific requirements and specifications of their own defense forces and the unique specifications of the ammunition required by Ukraine. The purpose of this study is to delineate the current state of ammunition production and the various limitations encountered. Empirical data for this research was gathered from a diverse array of sources, including official documents, published analyses, public service news, interviews, and focus groups. The findings indicate a need for greater robustness, resilience, and flexibility to adequately respond to significantly deteriorating security situations. Nations must re-establish close relationships with defense firms, partially reconstructing long-standing, strategic, trust-based relationships that existed prior to the New Public Management (NPM) transformation in the defense market. To manage this transition effectively, ammunition manufacturers and their associated supply chains must significantly enhance their dynamic capabilities and devise innovative yet stable solutions. The insights from this research will benefit political decision-makers, procurement authorities, defense forces, and ammunition manufacturers by providing a deeper understanding of the conditions necessary for grenade and ammunition manufacturing.
Stockholm, 2024.
International Society of Military Sciences (ISMS), Septemeber 10-12, 2024, Stockholm, Sweden