Building Europe’s Defense Backbone

What is behind the unprecedented demand for defense spending in Europe? On the first episode of SuiteTalk, an Active Share series that taps into the minds of top business leaders, host Hugo Scott-Gall sits down with Daniel Ljunggren, CEO of MilDef, a provider of tactical information technology (IT). Together, they discuss the evolution of the defense technology industry, the challenges and opportunities that have arisen in the current geopolitical landscape, and the important role leaderships plays when navigating uncertainty.

Comments are edited excerpts from our podcast, which you can listen to in full below.

What helps MilDef stand out from other companies in the defense space?

Daniel Ljunggren: We help deliver the IT backbone for defense forces. That means we support the digitalization of vehicles, integrated digital platforms, and complementary tactical technologies.

While hardware is our main focus, we also offer software and services. Ultimately, our role is to help defense and peacekeeping forces gain an edge by offering the technologies that contribute to greater situational awareness and operational advantage in the field.

That kind of hardware is known as rugged personal computers (PCs), correct?

Daniel: Yes. Rugged PCs are normally used in the field because in the field, forces can’t use commercial IT equipment; it would break too quickly. They need hardware that can survive a harsh environment.

It seems like software is playing a bigger role alongside hardware. Has that shift pushed MilDef to evolve its skillset?

Daniel: Today, MilDef is doing things that we weren’t just a few years ago. Through acquisitions, we’ve added software and services to our offerings, which has broadened what we do. And that expansion pushes us to stay at the forefront of innovation.

It also comes down to having the right people, the right mindset, and staying closely connected to our customers. We put a lot of focus on listening to what they need, so we’re not innovating in the wrong direction. Working together with our customers ensures we stay aligned with their real-world challenges.

I noticed your advisory board includes retired three- and four-star generals. Are they there mainly for their experience and networks, or do they also provide product insights?

Daniel: Mostly for their networks. They have helped open doors in important markets.

What are the moats around your business—is it better products, or is there more to it?

Daniel: I’d say the biggest factor in our space is trust. We’ve been delivering field-proven products for over 25 years, and that track record means a lot in this industry.

The geopolitical landscape feels completely different than it did 10 years ago. Would you agree?

Daniel: Yes, it really is a new world. For the defense industry, especially in Europe, the landscape has changed completely. We’re seeing an unprecedented surge in demand, unlike anything anyone currently working has experienced. European nations are clearly signaling a rapid ramp-up in defense spending.

At the same time, there’s some uncertainty around how quickly things will move. Even when I talk to other CEOs in the European defense sector, we all recognize that we’re in unfamiliar territory. So, we need to stay humble, stay alert, and be ready for what comes next.

The biggest factor in our space is trust.

Is Europe still far from having the defense strength needed to deter threats such as Russia?

Daniel: Europe has underinvested in defense for the past 30 to 40 years and rebuilding that capability won’t happen overnight. It’s not just about spending more; it’s about rebuilding a whole system of readiness and resilience. In many ways, this is a wake-up call.

Right now, the entire European defense industry is focused on increasing capacity, including scaling production, finding talent, and delivering more products at a faster pace. But we’re still at the beginning of that process. Realistically, it could take 5, 10, even 20 years before Europe reaches the level of deterrence it needs to feel secure.

As a CEO, how do you manage the challenge of growing fast enough to meet demand without risking stability?

Daniel: That is one of my biggest concerns. Rapid growth brings growing pains, and we are constantly thinking about how to scale while keeping our culture intact and bringing the right people on board.

There are a lot of challenges, such as finding talent, maintaining quality, and staying true to who we are as a company. So far, we’ve managed well. In fact, we’re preparing to ramp up even faster than current volumes might suggest, which involves taking some calculated risks.

We’re in a good position, but this is just the beginning. The next five years will bring even more challenges—and opportunities—to grow and strengthen the organization.

Are the main limits to growth physical (such as materials and equipment) or is the bigger challenge finding the right talent?

Daniel: To meet demand, we will need to rethink how we operate and collaborate across the European defense space. Talent shortages are a real concern, but there’s a positive shift happening.

For years, people moved away from defense because of declining budgets. Now, with funding and innovation returning, we’re seeing more interest in the industry again. People want to be part of this change and see defense as a place to make a real impact. So yes, attracting talent will be competitive, but there’s renewed energy around defense as an employer.

Historically, heavy defense investment has helped drive innovation, with spillover benefits for the wider economy. Do you see this happening in Europe?

Daniel: Yes, but the impact won’t be limited to the defense industry itself. It will ripple out to suppliers and the entire ecosystem. Hopefully, this renewed focus on defense will give Europe a much-needed boost to overall economic growth.

The impact won’t be limited to the defense industry itself. It will ripple out to suppliers and the entire ecosystem.

Are European governments worried about relying less on the United States? Is that pushing them to favor local suppliers?

Daniel: We have seen clear moves and directives aimed at strengthening European defense supply chains and reducing dependence on the United States. Europe has realized it needs to stand on its own when it comes to security.

There’s also real concern about how reliable U.S. support will be in the future, and that’s driving a serious push to build up European defense capabilities. This shift is happening now, and we’re already seeing actions reflecting that commitment.

This seems like a multi-decade shift for MilDef, with new demand and new customers across Europe.

Daniel: MilDef is committed to playing the long game, and now, our full focus is on being a relevant, reliable partner in Europe’s defense ramp-up. It’s a big challenge, but we’re dedicated to leaving no stone unturned to increase our capabilities and meet demand.

How do you think about culture?

Daniel: Despite the growing pains, I think that many of our 500 employees feel truly motivated knowing they’re an important part of Europe’s defense ramp-up. That sense of purpose—providing the best equipment to protect Europe—is a powerful driver. They don’t see this as just a job; they feel they’re making a real difference in helping to create peace again in Europe.

How do you make big (and small) decisions?

Daniel: I’m a talker. I like brainstorming with trusted people close to me in the organization so we can come up with solutions together and then execute. So mostly, I rely on discussions with wise colleagues, who offer good advice and fresh perspectives.

While I try to be as data-driven as possible, sometimes gut feeling plays a role, but that feeling is ideally backed by data to give it weight.

And occasionally, a walk helps me clear my head and find the right answers.

Once you make a decision, do you do so quickly and move on?

Daniel: My style is to decide and move on. I prefer making decisions quickly, knowing we can always adjust if it turns out we didn’t get it right the first time. But not making any decision at all is the worst. You must decide, move forward, and be ready to course-correct if needed.

You must decide, move forward, and be ready to course-correct if needed.

Do you wake up in the middle of the night, or do you sleep well?

Daniel: I sleep pretty well most nights. Of course, there are times when challenges come up that keep me awake. That’s part of a CEO’s job. I usually tell my team, “Bring me the bad news, because that’s what I need to handle. The good news usually takes care of itself.”

How have you improved at assessing and managing people?

Daniel: I try to focus on understanding the kind of person I’m leading and the situation we’re in because one leadership style doesn’t fit all. You must adapt your approach depending on the person and the context to motivate them and help them do their best.

I also tailor my message to the situation and the audience. Over the past 10 years, I’ve worked on giving straightforward, honest feedback more quickly, which I think is crucial. Being clear and constructive helps employees realize where they stand and how they can improve.

What is the best incentive for people to do their best work?

Daniel: Over the years, I’ve noticed that different people are motivated by different things. Sure, some are driven by money, but that’s often short-term motivation. For long-term motivation, you must look beyond cash incentives and find what truly inspires each person—something deeper that makes people want to put in the effort to create something meaningful together.

What’s the thing you’ve found hardest in your time as a CEO?

Daniel: It depends on the situation, but whenever you have to deliver negative news to your team—especially to people who’ve been with the company a long time—it’s always tough. It’s hard to disappoint or upset those who believed in a different outcome. That’s probably the hardest part of my job. But I think it’s crucial to deliver those messages with humility, honesty, and straightforwardness and without trying to sugarcoat things.

What would a war in the future look like?

Daniel: I don’t think we will ever completely move away from traditional tools like bullets and tanks, but there will be a shift toward unmanned systems such as drones and unmanned vehicles.

There is also a big push for digitalizing the individual soldier, which is called the “mounted soldier” concept, and that aims to bring digital technology directly to each person on the battlefield.

Right now, digitalization tends to focus more on platforms such as vehicles, but I expect demand to grow for digital solutions across all aspects of warfare. And we still don’t know how artificial intelligence (AI) will change things, but it’s bound to have a major impact.

As of the date of publication, William Blair Investment Management held positions in the company referenced in one or more of its investment strategies.

References to specific companies are for illustrative purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. It should not be assumed that any investment in the companies referenced was or will be profitable.