Denmark as a manufacturing country

June 16, 2011

Denmark as a manufacturing country

In the past two decades, employment within the Danish manufacturing industry has fallen significantly. Every third job is gone.

In 2010, the number of jobs within the manufacturing industry had dropped by almost 200,000 since 1990. The industry accounted for almost 20 per cent of the jobs in Denmark in 1990, however, this number dropped to 12 per cent in 2010.

These numbers are not encouraging and based on the rather dim outlook, the Danish Growth Council decided in 2010 to carry out an analysis of Denmark as a manufacturing country. In co-operation with the DGC and Copenhagen Economics, QVARTZ has conducted an extensive analysis identifying the conditions for running a manufacturing company in Denmark.

The results of the analysis reveal a number of interesting and somewhat surprising facts about the state of the Danish manufacturing industry.

Most importantly, it showed that even though manufacturing is important in Denmark, it represents a declining part of the Danish economy:

  • In 2009, export turnover represented 62% of total industrial manufacturing turnover
  •  At an industry level, the manufacturing industry is the largest investor as it accounts for DKK 15.4 billion of the total private R&D expenses of DKK 35 billion
  • For every DKK 1 billion in turnover, the manufacturing industry buys services worth approximately DKK 125,000
  • In the last 20 years, industrial manufacturing productivity has increased continuously and at a stable rate, whereas productivity growth in the rest of the economy has slowed down during the last ten years. The manufacturing industry’s part of GDP has decreased from 19% in 1980 to 13% in 2010
  • Employment in the manufacturing industry has declined by 200,000 jobs since 1990. In 2009 and 2010 alone, employment declined by 65,000 jobs
  • However, the manufacturing industry’s decreasing share of the total workforce is a global trend in both industrialised countries as well as developing countries.

Moreover, the outsourcing of jobs in the manufacturing industry is increasing and this too goes for jobs within research and development.

Read more and find the full report here.