Luxembourg's industrial shift: a new era of specialization
Luxembourg's industrial sector has undergone a significant transformation, with its share of the total economy shifting from 11% to approximately 4% of value added since 2000. Similarly, its employment share has decreased from 13% to 6%. However, this proportional decline doesn't tell the full story: the absolute number of people employed in the sector has remained remarkably stable at around 38,000, indicating a reorientation rather than a reduction in workforce.
Strategic vision: multi-specialization driving growth
The Luxembourg government is actively steering the economy towards a future-proof model through a robust multi-specialization strategy. This forward-thinking approach is developing strong pillars in critical high-growth areas, including digital technologies, artificial intelligence, health tech, clean technologies, space exploration, and advanced logistics. The objective is clear: to significantly boost innovation, enhance Luxembourg's international visibility, and attract crucial investments through targeted sector-specific networks.
Logistics and advanced manufacturing: real estate implications
For businesses looking to establish or expand operations, this strategic pivot is particularly relevant. The emphasis on advanced digital technologies, AI, and clean tech creates demand for modern office spaces, R&D facilities, and specialized production units. Furthermore, the focus on logistics underscores the continuous need for state-of-the-art warehouse and distribution centers, strategically positioned within Europe.
Anchored by giants, poised for the future
Despite the changes, major industrial employers like ArcelorMittal and Goodyear continue to play a significant role, providing a strong foundation for the sector. Luxembourg's industry is considered vital for the ongoing transition towards climate-friendly and digitally-driven production methods. This robust sector also makes a substantial economic contribution, generating between 220 and 330 million euros in tax revenues annually.
Luxembourg: your next strategic location?
As Luxembourg embraces this new industrial era defined by innovation, sustainability, and technological advancement, it presents compelling opportunities for businesses in these evolving sectors. The stable workforce, strategic government support, and focus on high-value industries make it an attractive location for companies seeking to rent office, industrial, or warehouse spaces in a dynamic European hub.
Source: lessentiel.lu
