Denmark is challenged as manufacturing location

Denmark is challenged as manufacturing location

April 13, 2015

The Danish Growth Council has asked Copenhagen Economics and Quartz + Co to analyse ‘Denmark as manufacturing location’. The analysis outlines the conditions for manufacturing in Denmark and among other issues focuses on the job creation and outsourcing of production jobs and jobs within manufacturing R & D.

The main conclusions from the report are that:

  • The manufacturing is important, but declining part of the Danish economy
  • The second wave of outsourcing of manufacturing jobs is here, but still at a low level
  • Slack job creation at home. For every 10 jobs being outsourced, only one is created at home
  • In the first wave of outsourcing, six jobs were created for every 10 manufacturing jobs
  • High wages in Denmark and low productivity are the main reasons for outsourcing
  • Outsourcing is also increasing within the areas of R&D
  • Outsourcing of R&D is rarely related to outsourcing of production
  • Access to new markets and to new innovations are main objectives for R&D
  • Danish manufacturing firms that outsource are more productive and more long-term profitable

The report is presented and debated at a large democracy festival on the island Bornholm on 16 June.


Read the report here


See information about the report here or here


For more information, please contact partner Martin Hvidt Thelle