- 2 out of 3 believe that revenues are going up in 2019. More than 25 pct. expect a + 10 pct. increase in revenues
- Only 5 pct. see a possible revenue decline
- 30 pct. of the companies expect to hire more people
- Only 5 pct. expect staff reductions during the coming 12 months
Similar reports from 2016-2017 shows same pattern: optimism is high in terms of growth in orders related to the Danish market.
- 34 pct. see increasing domestic demand as their biggest growth opportunity in the years to come
Lack of qualified labour is the biggest threat to growth in general – and the problem is getting bigger every year.
According to Las Olsen, Chief Economist in Danske Bank, companies in general will benefit from later future retirement in Denmark due to political legislation. But the question is: Can we keep attracting the needed qualifications from outside Denmark in terms of employees, since companies from big parts of Europe are struggling likewise?
- In 2016 a similar report showed that 12 pct. of the companies saw lack of qualified labour as their biggest threat to growth. The 2018 results show that these numbers have now raised to almost 30 pct.
Increased lending can support growth and investment plans
Despite trade wars and uncertainty about Brexit optimism is high among Danish companies. Obviously that’s very positive. This report confirms what’s also our impression during daily meetings with our business banking clients. In Danske Bank we have the necessary capacity to support the plans for growth as well as investments with increased lending. We have to make sure that growth expectations are a natural part of our strategic dialogue with the costumers, so that we help them move in the right direction pointing at their new markets.Niels Bang-Hansen
Head of Business Banking Denmark, Danske Bank
What do bigger companies expect?
One of the reasons for this could be that small and mid-size companies are more focused on their home market, while bigger companies look beyond Danish borders. And the bigger global markets is facing challenges such as the trade war, political crisis in Italy, Brexit, slower economic growth in both China and Europe and rate hikes in the US.