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European Construction Sector Observatory - Country profile: Denmark

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The Danish construction sector has been on the revival path since 2010, in line with the overall improvement in the general economy. In 2018, there were 74,810 enterprises in the broad construction sector in Denmark, with the narrow construction sub-sector accounting for 49.6% of the total. The number of firms in the broad construction sector has increased by 18.3% since 2010, with architectural and engineering activities experiencing the greatest growth (+21.9%).

 

In parallel, employment in the sector is currently at its highest level since 2010. However, the broad construction sector faces shortage of skilled labour, which represents the main investment barrier for firms in Denmark. To address skills shortages, a number of initiatives have been launched that aim to engage young people in construction-related apprenticeships and vocational training, such as the campaign “Thank you” that promotes companies that employ apprentices.

 

The Danish construction sector also faces stiff competition. Many mid-sized players have expanded their business activities beyond their traditional local markets to all over the country, which has led to decrease sales prices.

 

Denmark is a leader in eco-innovation and sustainable construction, with a variety of funding scheme available to support R&D projects related to the efficient use of energy in the building stock.

 

The outlook for the construction sector mirrors the positive outlook of the economy, with growth being predicted at 7.5% in 2019 and 7.9% in 2020. However, low productivity still affects the competitiveness of the industry. Hence, the government has developed specific policy strategies to address this issue and increase the productivity of the sector.

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