The contribution of the wood industry to the economy

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The wood industry is comprised of companies that work with wood as the main material. The industry consists of the entire value chain for lumber - from growing in the forest, being processed and manufactured for its final use, often as part of a building or an export product. The main conclusions are:

Those employed in the wood industry come from all segments of society

The wood industry in Denmark employs approx. 51,400 people with all type of educational backgrounds and all over the country. Those employed cultivate the trees, process them into lumber, manufacture furniture, building materials and stationery from them, trade or build with them.

The industry is notable for its ability to create jobs outside of major cities. Naturally, forestry requires space and the lumber, furniture and paper industries are often located in smaller municipalities. Locally, the wood industry can be a major source of jobs.

The wood industry contributes significantly to the Danish economy

The wood industry contributes to the Danish economy directly, indirectly and through induced economic effects. The industry contributes directly with around DKK 32 billion to the Danish GDP. Moreover, the industry is integrated with the rest of the Danish economy, and its purchases from Danish subcontractors outside of the wood industry create activity that contributes with an additional DKK 22 billion to GDP. The revenue generated by both the wood industry and its subcontractors translates into consumption that also generates activity and adds another DKK 23 billion to the Danish GDP. All things considered, the wood industry thus contributes DKK 77 billion to the Danish GDP.

Wood is a climate-friendly material

The wood industry’s contribution to the Danish economy has the positive aspect that it is based on climate-friendly material. Wood absorbs and binds CO2 from the atmosphere, replacing fossil fuels and can be used instead of energy-heavy materials such as steel and concrete. All of these aspects of the wood industry benefit Denmark. Thus, the wood industry is a key element in an efficient green transition of the Danish economy.
The study is commissioned by the X.

Links

Højbjerre Brauer Schultz (2019): "Træsektorens bidrag til samfundsøkonomien".

 

Contact

MARTIN KRISTIAN BRAUER

MARTIN KRISTIAN BRAUER

PARTNER, M.SC. (ECONOMICS)