The Growing Hotspot for Global Logistics
The Nordics will be hosting the FlyPharma Conference Europe this October. As a prelude, there are numerous advantages for pharma and logistics companies in the Greater Copenhagen region.
This year’s FlyPharma Conference Europe for pharma and logistics professionals is staged in Copenhagen, Denmark, moving to the Nordics for the ﬁrst time.
Backing the event as sponsors are SAS Cargo, DSV, and Copenhagen Airport, and among the supporting partners is Copenhagen Capacity: the inward investment agency of Greater Copenhagen, serving industries in life sciences and logistics in a business region covering Eastern Denmark and South Sweden. The conference is an appropriate occasion to rebut any myth or tale that Scandinavia, Denmark in particular, is marred by prohibitive taxation and high labour costs.
High taxation does not apply to companies; Denmark’s corporate tax rate of 22% is one of the lowest in Europe. That is not all. uniquely among the Nordic countries, Denmark has no double taxation for companies with branches abroad. As a result, Greater Copenhagen is a highly attractive location for establishing a Nordic headquarters and for Scandinavian expansion.
Companies operating in Denmark will also beneﬁt from a highly professional, skilled, and ﬂexible work force. Thanks to the Danish labour market’s ‘ﬂexicurity’ model, supported by both state and labour unions, Denmark is unique in allowing companies to continuously adjust their labour force to ﬂuctuating market conditions at short notice and without complex negotiation processes.
Notice should also be paid to the fact that the personal income taxes help facilitate a unique level of public ﬁnancing of a wide range of welfare issues including childcare, schools, medical and social services, hospitals, culture, and many other areas requiring personal investments in most other countries. This applies equally to the evaluation of wage levels in comparable sectors; for example, at ﬁrst sight, Danish wages are well above levels in Sweden, but in Sweden, employers must add some 30% (compared to Denmark’s 0.6%) to wages in social costs. Employer cost compared to salary cost makes a huge difference in the business case to invest.
The digital infrastructure in Denmark is highly developed in both the private and public sectors with a record-high penetration of mobile internet access points and 5G soon to be rolled out – crucial for logistics service providers as hand-held and mobile units are increasingly used to secure real-time monitoring.
This is particularly important to pharma logistics service providers who must adhere to new serialisation standards, implying that all stages in the production and handling of pharmaceutical products must be fully identiﬁable, veriﬁable, and traceable from early production until the product has reached the end user. Pharma logistics relies on digitisation, and Denmark leads the way. In fact, Denmark was named the most digital country in the world in the International Digital Economy and Society Index 2018.
Ease of doing business
Access to public institutions and agencies at any level is easy and transparent, and public-private collaboration is common. Copenhagen Healthtech Cluster offers businesses, research institutions, and public health operators the opportunity to cooperate on developing and implementing new innovative data-driven solutions in hospitals and the healthcare sector.
Medicon Valley Alliance, a Danish-Swedish cluster organisation for the life sciences community in Greater Copenhagen, supports pharma, biotechnology, medico, and related industries in the region and stimulates pharma industry players close to innovation and development.
Today, more than 350 international pharma-related companies are established in the region. These include American Biogen (which decided to gain its European foothold via Greater Copenhagen), German Phoenix Group, Nomeco (which has set up a Nordic pharma warehouse in Greater Copenhagen), and Verdion iPark Logistics (which has established two temperature-controlled logistics centre locations in the region).
For many years, Copenhagen has served as one of only ﬁve Unicef Global Supply Hubs, citing the synergies from multi-modal accessibility as the main driver behind the decision.