Reshoring in Denmark Made Easier by Firms Like Egatec

In the News
December 29, 2016

In Denmark, robotics is contributing to the reshoring trend, in which production is returning from China back to Europe, according to Kent Damsgaard, vice president of the Confederation of Danish Industry.

“We can see the same trend in Europe that robots and automation are the driving forces of moving the production home, as it keeps the payroll down,” he said. “Wages have increased in China, where there is another culture and different working conditions.”

“The business case is better by having the production near the end users with customized solutions,” Damsgaard added. “In addition, it is advantageous for companies to have production and development close to each other.”

“Companies can also achieve other strategic advantages with the new technology, moving the production to the U.S. or Europe, for instance, and being able to switch the production rapidly,” he told Robotics Business Review. “To base production in Denmark is often chosen when the production does not have large, long series, but short series with a twist, that require flexibility. It may be worthwhile for the companies to gather their activities here.”

Business Takeaways:

  • Danish companies are examples of how reshoring can help efficiency by moving production closer to the end user.
  • Flower and herb grower Rosborg Denmark has used autonomous systems from Egatec Packaging to increase productivity and save money.
  • Robotics is viewed as a way to help multiple industries return from Asia to the U.S. and Europe.

Reshoring to shorten the supply chain

“I see a pattern in the fact that in the 2000s, we were outsourcing to Eastern Europe and China,” said Mads Nychel, CEO at Egatec Packaging International ApS in Odense, Denmark. “Today, automation is high on the agenda, and both robots and automation equipment are much cheaper than 10 years ago. We have better financial tools such as leasing...

Continue Reading