Most economic activity zones are now fully occupied, while dozens of companies are looking for an available plot. Luxembourg has slowed itself down – at a time when the country could really use investments worth millions.
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In terms of housing policy, Luxembourg has failed to respond adequately to sustained growth. Together with other factors, such as pronounced profiteering, this has led to the very housing crisis we are experiencing today.
However, the lack of foresight had other consequences. According to the latest figures from the Chamber of Crafts, almost all of the 100 companies surveyed stated that they were looking for a new location. 68 hectares of free space would be needed. At best, just under 15 hectares are still available in the regional activity zones.
These figures speak volumes. They mean that dozens of companies are restricted to their current location or want to reposition themselves but are unable to do so. Investments worth millions are failing to materialise – and the country could really do with them at the moment. The economy continues to bob along, mainly due to external factors. The country is barely emerging from the recession of recent years.
The problem is not new and it is obvious. Luxembourg's territory is limited. The pressure on land is constantly increasing. Efficient utilisation is imperative. As early as 2021, a survey by the Chamber of Skilled Trades and Crafts highlighted the location problem for businesses. It may not have appeared at the most favourable time. But it highlighted an emergency that is hardly ever discussed today. And it comes on top of all the other challenges weighing on the skilled trades sector: a shortage of skilled labour exacerbated by demographic ageing and competition from public employers, rising production costs, ever more bureaucracy, energy prices..
The only difference is that the decision to relocate elsewhere is one of the most important a company will ever make in its history. And just like building your own home, there is a window of opportunity for such a project, which closes at some point in the interplay of factors such as the maturity of the business, the interest on the loan, the age of the management or the company succession.
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