Danish companies: No profit in public procurement abroad

In Denmark almost no foreign companies bid on public procurements and nor city councils abroad should expect offers in the landscape gardening business from Danes.

By Elise Patricia Rasmussen

When the cities of Madrid or Athens need to get their lawn mowed or their streets repaired it will not be Danes who are doing the job. The Danish companies do not bid on public procurements outside Denmark.

“We don’t bid on procurements in other countries. We never have, and we probably never will,” Emil Utoft, sales consultant at Nygaard, a large Danish landscape gardener company says.

If Spain needs their hedges to be clipped they should not count on a visit from Nygaard. Photo: Elise Patricia Rasmussen.

 

He thinks it is both very complicated and resource demanding to bid in another country but other than this there is another reason.

“It simply can’t pay to do it,” he says and explains:

If we look at our neighboring country Germany, the wage is lower, so we couldn’t use our own employees. We would have to hire locals. It would demand too many funds even to be able to compete with German companies.”

This is something that the landscape gardening trade organization can recognize. Their members almost never go abroad and the main reason is evident.

“It will never pay of to go abroad with Danish staff, unless they have very specific know-how” Ejvind Røge, chief executive officer at DAG (Danish Landscape Gardeners, red.) says.

He is only familiar with one company, which operates out of the country. They are building up a new department in Sweden, but according to Ejvind Røge it is not in order to bid on Swedish EU procurements.

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