“The current plans to support domestic production in the sector, as outlined by government officials, mean that we will be operating in a favorable environment for many years to come. We see significant potential for expanding areas of cooperation with the Polish government and for strengthening the role of domestic industry,” said Grzegorz Niedzielski, CEO of the Niewiadów-PGM S.A. Group.
Private companies have potential
Given the sharp increase in demand for weapons and ammunition in recent years—both on the domestic and global markets—it is clear that the growth potential for private companies is very high. An opportunity for the development and growth of the Polish economy lies in the participation of private companies in the expansion of Poland’s military capabilities—including close cooperation with the state-owned defense sector, as is the case, for example, in the United States.
An increase in domestic arms production will have numerous positive effects on the economy, such as a rise in the investment rate, tax revenues for the Polish budget, new, stable, and well-paying jobs, and above all: enhanced national security by retaining know-how within the domestic industry, which is crucial in the event of a military conflict.
Currently, the market in this industry is very receptive, which creates opportunities for new players to enter it. Innovative solutions, in particular, have a good chance of succeeding. However, starting a business is more difficult than in other industries, partly because the market is relatively closed off. That is why the role of experience and personal connections (established, for example, at trade shows) cannot be overstated in the defense industry.
In addition, our industry is subject to numerous restrictions related to safety, technical requirements, and regulations—both domestic and international. This requires companies, including their management and employees, to possess knowledge, experience, and unique skills. For example, a high level of compliance expertise is an integral part of business, particularly in activities related to export and import. Production itself, meanwhile, requires the involvement of highly specialized technical staff and appropriately equipped facilities where such activities can be conducted in accordance with the law.
In terms of human resources, we currently see risks in the market, but these also present opportunities for growth. Many experienced professionals who have spent their entire careers in the defense industry are now retiring.
There is, therefore, a shortage of employees trained to work with specific and often hazardous materials. Process automation partially fills this gap, but each process requires specialized supervision by experienced staff—and the Niewiadów Group has such staff.
Investments currently in the pipeline face yet another challenge: securing financing. The financial sector has long shunned the defense industry and is only now beginning to open up to it again. Private companies operating in the defense sector, seeking to carry out large-scale investments, are therefore turning to investment funds. Another solution could be entering the capital market—which, in our case, was achieved by joining forces with Polska Grupa Militarnia, a company listed on the NewConnect market, operated by the Warsaw Stock Exchange.
We rely on the support of international financial institutions, such as Ebury, for purposes including secure international payments. When selecting a partner of this kind, we look for professional advice, solutions tailored to our needs, prompt service, and modern, user-friendly solutions.
Grzegorz Niedzielski
President of the Niewiadów-PGM S.A. Group
A graduate of the Warsaw University of Technology, Faculty of Mechanical Engineering and Technology, and Kozminski University (including an MBA program).