Economic review for Denmark

The Shopfitting Industry

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ISO Congress, 28.04.07, 2007

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The Danish economy remains strong without clear indications of slowing down or overheating. As in the rest of Europe interest rates have increased throughout 2006 making investments in real estate and housing more expensive. However, first quarter of 2007 has shown a historic high level of activity in the construction sector. Compared with the first quarter of 2006 an additional 46,000 full time employees were working in the construction sector in this quarter, creating an extra value of USD 2.3 bn for the sector. Construction activity in the retail sector has been strong too, with emphasis on malls, retail parks and shopping/office centres.

 

Key figures for Denmark (April 2007):

 

Population                            5,447,000

Unemployed                           106,900

Unemployment rate              3.9%

Inflation last 12 months         2.0%

 

Since 2000 the retail sector has been growing steadily, but has shown signs of stagnation and even decrease in the first months of 2007. The value index of the retail sector for the period 2000-2007:

 

Jan 2000 = 100.0

Jan 2001=  100.7

Jan 2002=  106.8

Jan2003=   110.6

Jan2004=  113.6

Jan2005=  120.6

Jan2006=  126.6

Jan2007=  126.9

 

Obviously the shop fitting industry is affected by trends in the construction and retail sectors. As both sectors have been strong and growing in the years 2004 to 2007 the shop fitters have also been positively affected. Main problems for the shop fitting industry has been sharp increases in the prices of some material input such as metals and uncertainty on delivery times. Also the low availability of workers has affected negatively on the industry and delivery times and prices. Recent results from collective bargaining negotiations have shown some increases in wages but not jeopardising the industry or competitiveness.

 

DDI, the Danish Shopfitting Association has 23 members.

 

DDI Secretariat

Steffen Thomsen

HVR (Danish  Federation of SME’s)

19.04.07