What is the business community on Lolland-Falster and South Zealand waiting for in 2025? First, Allan Aaskov, director of Lollands Bank, gave his take with a focus on economic growth and the significance of the Fehmarn project. Then Helene Urth, director of Business Vordingborg, pointed to green investments and the ongoing challenge of securing qualified labor. Michael Bang, CEO of CELF, emphasized the importance of upskilling and retaining the workforce in a time of increased demand for specialized skills.
Now it is Mikkel Wesselhoff, director of Business Lolland-Falster, who gives his perspective. How does he see the development for the area's businesses in 2025? What opportunities and challenges should the business community prepare for?
What trends do you see for the business community on Lolland, Falster, and South Zealand in 2025?
The business community is doing well, and that development will continue in 2025. But the development in the business community on Lolland, Falster, and South Zealand in 2025 will also be characterized by a complex mix of both challenges and opportunities.
It is my assessment that many of the challenges and opportunities businesses experienced in 2024 will carry over into 2025. We will also see a greater degree of unpredictability in several areas, where it becomes increasingly important to listen to the market, distinguish between noise and signals, and ensure robustness in business operations.
This means, among other things, that businesses must ensure financial resilience with a robust balance sheet. They need to work on securing the organization, vital operational areas, and leadership strength, as well as digitally in terms of efficiency and security.
We are expected to experience a more attractive interest rate level and consequently higher investment willingness. There will still be a shortage of qualified labor, and therefore we will continue to need international labor in increasingly larger numbers in Lolland-Falster.
Which sectors do you think will experience growth in the coming year? And why?
- The green transition will continue to be a strong driver in business development in both Europe and Lolland-Falster. In 2024, we produced almost five times more green electricity on Lolland-Falster than we needed, and we see this surplus as a strong attraction for new companies.
The expansion of solar and wind energy will in the future be used as an active instrument in business development, where the establishment of new renewable energy parks with solar and wind will be directly linked to companies and new jobs.
Today, we have a production surplus of green electricity, and it is an investment in future jobs. We can look forward to a further necessary expansion of renewable energy production because the demand for electricity is increasing significantly, and the transition from fossil energy needs to speed up. Lolland-Falster has been a frontrunner in this area, and we must continue with it in the coming years.
Mikkel Wesselhoff
CEO, Business Lolland-Falster
Mikkel Wesselhoff is 45 years old and born and raised in Stubbekøbing. He is the father of three children.
He has a university degree in business management from Aalborg University and has further educated himself in innovation at Harvard Business School.
Mikkel joined Business Lolland-Falster in 2011 as deputy manager and business developer, and in 2014 he took over the role of CEO. Under his leadership, the organization has grown to 20 employees, and Visit Lolland-Falster has become part of the portfolio.
Nakskov Harbor and the tunnel harbor in Rødbyhavn will play a crucial role in 2025 and the years ahead. Commercial harbors with space on and near the harbor will play a key role in the green transition, including the production and shipping of green fuels as well as efficient and green shipping. Therefore, the work to realize the industrial park and the harbor at Rødbyhavn is crucial and will create a transformation of Lolland-Falster.
ESG and sustainability reporting will also mean more for local businesses, especially if they are part of value chains as subcontractors. It is my clear impression that business leaders are ready to take on the task of ESG reporting because they can see that it is a necessity.
Finally, there is the construction of the Fehmarn Belt Tunnel, which continues to create massive investments in infrastructure and transport. The project acts as a growth engine, not only in the construction sector but also in logistics and transport, where Lolland and Falster become a central link between Denmark and the rest of Europe. The closer we get to an opening, the more activity will increase.
2025 will be marked by the work to realize the vision of an international industrial park at Rødbyhavn and the future of the large tunnel production area and the port, which will be preserved when the construction of the tunnel is completed.
The tunnel gives us a very large tourism potential in both the short and long term. 9 million Germans can reach Lolland-Falster in two hours when the tunnel is open. This will give tourism a huge boost, and preparation for the new future will characterize 2025.
Which sectors do you think will experience growth in the coming year? And why?
- The construction sector will experience growth but will also be challenged in terms of their earnings. The industry can also grow, particularly based on an expansive financial policy in both the EU and the USA - however, geopolitical unrest can create a slowdown and a lack of investment appetite.
The consulting industry on Lolland-Falster is an overlooked sector that has generally performed well. It will continue to do so with many tasks in 2025.
Which sectors will struggle?
- The retail sector will again be challenged by our changing consumer behavior, where we shop more and more online. We also generally experience low consumer confidence, which can affect both the experience industries and retail. The experience industries stand strong with large and well-known attractions that draw many visitors, as well as a lot of well-run tourism businesses that see progress every year. Lolland-Falster also has strong retailers who understand how to run their businesses, and at the same time, there are historically many in jobs and thus purchasing power for those who hit the market right.
What are the biggest challenges companies in the area face in 2025?
- There are many challenges that can affect companies in 2025. In an unpredictable time, it's about staying calm and not acting in panic. At the very general level, there is the geopolitical situation, the EU's competitive situation, and the lack of labor that pressures companies. We have a large export, and many of our jobs are tied to companies with either direct or indirect export.
The development in the important German market affects both tourism and industry, and it will be exciting (perhaps a bit too exciting) to follow the development in Germany.
If it were my company, I would focus on optimizing my financial balance and have a somewhat cautious approach to the market. Both to withstand external pressure and to have the opportunity to invest if the chance arises. It's wise to keep a cool head and be careful about acting on something you don't fully understand yet.
COWI has made a report for Lolland Municipality, predicting a significant shortage of labor in the coming years. If it's a problem there, it's likely also an issue in the rest of the region. How do you solve it?
- The challenge with the COWI report unfortunately only shows a fraction of the issue. If the entire new industrial park at Rødbyhavn, the tourism projects at Marielyst, and the other business parks in both municipalities are realized, there will be a massive demand for hands.
The good news is that with faster train connections, many more people will be able to reach Lolland-Falster both from the south and the north.
The major infrastructure projects like the tunnel construction and the Storstrøm Bridge construction, together with our large companies, have shown that labor can be attracted both from Denmark and internationally. This has also led to increased settlement, thereby helping to strengthen the local communities.
Lolland-Falster should be an attractive place to live with good schools and opportunities for education. The international public school in Maribo is an excellent example. We need to strengthen the collaboration between educational institutions, businesses, and municipalities to make the region an attractive place to live, work, and reside.
How can companies prepare themselves to take advantage of new opportunities in the region?
- It is important to be open and have a broad perspective. Many of the companies on Lolland-Falster will be well-prepared in 2025 to take on large tasks outside of Lolland-Falster.
