Currently, the biggest challenge for Latvia’s defence industry is the shortage of human resources, said Elīna Egle-Ločmele, Chairwoman of the Board of the Latvian Security and Defence Industries Federation (“DAIF Latvia”), in an interview with LETA.
She explained that there are specific projects that companies say they cannot take on. Some DAIF Latvia members already have orders extending until 2030, but human resources — especially skilled personnel such as engineers — are a major challenge, with engineers in particularly high demand.
Egle-Ločmele emphasized the importance of dialogue and communication so that the defence industry knows what will be needed and when.
Asked whether the goal set in the recently approved Defense Industry and Innovation Support Strategy 2025–2036 — to increase local industry involvement in National Armed Forces (NAF) procurement to 20% by 2028 — is achievable, Egle-Ločmele said it is possible, but stressed that it must be done sustainably.
“We could establish 50 more companies trading foreign products and claim we are supporting Latvian businesses. That would be one way to support the industry. But it would be better to work with companies that currently have engineers and have invested in areas like drone systems development, to maintain research capacity. Then, when we have a clear understanding of NAF needs, the necessary products can be manufactured. It’s about building long-term, sustainable relationships to strengthen the industry,” she explained.
When asked for her overall assessment of the new Defense Industry and Innovation Support Strategy, Egle-Ločmele responded that it will definitely give a push for development.
She praised the strategy for aligning with last year’s adoption of the European Defence Industrial Strategy, ensuring that Latvia is not developing something disconnected from the broader European course.
“The European Defence Industrial Strategy clearly sets a goal that 30% of procurements must be joint European procurements. If guidelines are being updated for industry involvement in defense, we need to have an honest conversation with the Ministry of Defense about which direction we are heading and what we are developing. It’s clear we can’t do everything — we have a duty to procure 30% jointly with other European countries,” Egle-Ločmele noted.
She acknowledged that there will be entrepreneurs dissatisfied, claiming they can produce various products, but some choices will have to be made. This will also help companies avoid investing expensive resources where they are not needed.