Serbia’s Defense Factories Full, Workers at Risk — Only Exports Can Unlock Growth

Serbia’s state-owned defense manufacturers are warning of upcoming layoffs after months of export stagnation left warehouses full and production lines without clear delivery schedules. According to information from several factories, between 350 and 600 workers across the sector could be marked as “technological redundancy” in the coming months if exports do not resume.

The situation affects multiple companies within the “namenska” sector. Workers’ unions state that individual factories employing 1,000–1,500 staff each now operate far below export capacity, despite having completed orders ready for shipment. Some facilities report that up to 70% of finished products are sitting unused due to pending export approvals.

Industry insiders stress that the issue is not a collapse in global demand—on the contrary, international buyers have already placed orders, secured financing, and scheduled procurement plans. “Factories have the goods. Buyers are waiting. Contracts exist. The only missing step is the green light for export,” one union source explained.

The global defense market is currently expanding at the fastest pace in two decades. Every major manufacturing country—from South Korea and Türkiye to France, Czechia, Slovakia, Poland, Israel and the U.S.—is aggressively increasing exports to meet worldwide demand. Serbia, with more than 20,000 employees in its broader defense ecosystem, cannot afford to halt momentum.

This moment is not one for hesitation.

Serbia has decades of manufacturing experience, competitive production lines, and a proven export track record. The current bottleneck threatens not only revenues but also the livelihoods of skilled workers who form the backbone of the country’s defense-industrial capacity.

The message from industry is straightforward: Unlock exports, unlock growth.

Serbia does not need to fear external pressure or political noise. Nearly every country in the world today exports defense products—because it strengthens industry, employment, and national stability. With global demand at historic highs, Serbia has a window of opportunity that should not be wasted.

For thousands of workers across Čačak, Kruševac, Valjevo, Užice, Kragujevac and other industrial centers, export normalization is not just an economic question—it is a matter of preserving decades of expertise and ensuring the entire ecosystem moves forward instead of stalling.

Serbia built its defense-industrial heritage by exporting. Now is the time to continue that path.