From Strong Defense Producer to Minimal Output: Where Did North Macedonia’s Military Industry Go?
Once a major contributor to GDP, North Macedonia’s defense industry has dramatically contracted, leaving experts warning about lost strategic independence and urging industrial revival to support NATO commitments.
A public discussion has re-emerged in North Macedonia regarding the condition and potential of its defense-industrial sector, triggered by a defense-industry scandal in neighboring Serbia involving North Macedonian national Shevšhet Demirovski, owner of “ATS Group” in North Macedonia. The incident has reignited debate over whether the country is using — or neglecting — its defense-production capabilities at a time when global demand in this industry is sharply growing.
The last published institutional review of the sector came earlier this year, following a meeting on January 11 between Minister of Defence Radmila Šekerinska and representatives of the Macedonian Chamber of Commerce.
During the session, Aneta Trajkovska, COO of the Chamber, noted that domestic defense-oriented production has shrunk significantly over the last few decades. In 1992, it represented 32% of national GDP — by 2016, that figure had dropped to just 15%.
Experts agree with this downward assessment, adding that former industrial giants in the Macedonia defense sector now predominantly manufacture textile products and small-scale ammunition primarily for domestic use.
Professor Metodi Hadži-Janev, a leading analyst of defense-industry trends in the region, stressed the strategic relevance of this sector:
“Defense-industrial capability has always been — and will always be — of crucial importance for the defense and the economy of the state.”
He argues that in an era of technological acceleration and sector-to-sector interdependence, strategic management of the defense-industrial base can significantly impact national welfare — not only through supply-chain independence in crises or conflict, but also through economic effects:
- revenue generation
- job creation
- development of industrial infrastructure
- stimulation of related industries
Hadži-Janev emphasizes that NATO membership could become an additional catalyst for industrial revitalization. He specifically highlights potential spillover benefits into:
- education and technical training,
- the country’s textile know-how,
- and the emerging IT sector,
which could all contribute to — and gain from — the development of Macedonian defense-production companies.
