The Danish mechanical engineering sector faces a profound dual challenge that strongly influences the automation procurement process. First is the acute shortage of skilled labor; a shortage of nearly 100,000 trained workers is expected by 2030, which seriously threatens production capacity and the pace of innovation. This labor shortage is forcing procurement managers to opt for flexible automation solutions-such as collaborative robots (cobots), drones and AI systems-that efficiently complement human capital without disrupting existing work processes.

At the same time, procurement decisions take place within a complex and constantly changing regulatory framework. Key frameworks such as the EU AI Act set strict transparency and risk management requirements for AI-integrated automation technologies, while the Corporate Sustainability Reporting Directive (CSRD), effective from 2025, requires comprehensive sustainability reporting that influences supplier selection and system requirements. In addition, Denmark is enforcing compliance with the EU Drone Strategy 2.0, with strict operational requirements for the use of drones in logistics, including approvals for Beyond Visual Line of Sight (BVLOS) from 2026 – essential for warehouse automation. The updated EU Machinery Regulations (2023/1230) also set additional certification and CE marking requirements, making supplier assessment even more stringent.

This combination of a scarcity of personnel and stringent regulations is driving procurement strategy. Managers are forced to select technologies that quickly deliver demonstrable return on investment (ROI) while fully complying with laws and regulations and integrating sustainability requirements. The Robotics cluster in Odense, globally recognized with more than 300 robotics, drone and automation companies and nearly 20,000 employees, illustrates this tension between opportunity and complexity. The cluster’s strengths-such as Universal Robots’ expertise in cobots and Mobile Industrial Robots’ advanced autonomous platforms-offer procurement teams a crucial ecosystem to find compliant, state-of-the-art solutions optimized for Danish mechanical engineering.

Effective sourcing in this context requires a flexible vanguard that anticipates regulatory changes early, integrates compliance controls early in the sourcing process, and balances sustainability requirements such as life-cycle carbon footprint reduction with operational needs. This strategic alignment protects supply chains and operational agility despite staffing constraints, and positions manufacturers for success within Denmark’s demanding economic and regulatory landscape.

The Danish manufacturing sector faces a significant labor shortage, despite a robot density higher than the EU average (about 270 robots per 10,000 workers compared to 180 in the EU). This labor shortage is particularly acute within Odense’s robot cluster, where 78% of companies report difficulties in finding qualified personnel, prompting them to attract international talent.

Addressing Labor Shortages with Targeted Automation

Purchasing managers must therefore focus on automation technologies-particularly collaborative robots (cobots)-that work safely with human workers while providing the flexibility to handle high variety, low volume productions. Such adaptable solutions are essential to reduce reliance on scarce skilled labor while maintaining production agility.

Requiring Quick and Measurable ROI Under Budgetary Pressure

Capital expenditures must be strictly justified by quick, measurable returns. Procurement decisions are going to prioritize technologies that offer a payback period between 18 and 24 months. For example, a Danish manufacturer achieved an ROI of 16 months by integrating UR cobots with OnRobot grippers, which led to a significant reduction in changeover times and increased throughput without expanding staff.

Navigating a Rigorous and Layered Regulatory Framework

The recently introduced EU AI Act requires transparency, risk assessment and governance for AI-driven quality assurance and process control systems. At the same time, the CSRD imposes detailed sustainability reporting from 2025, affecting supplier selection and product specifications. Drone operations must comply with the EU Drone Strategy 2.0, including requirements for BVLOS approvals, crucial for warehouse and logistics automation. In addition, EU Machinery Regulation 2023/1230 maintains updated CE marking requirements and conformity assessments for equipment integration.

Integrating Sustainability Commitments with Robust Supply Chains

Sustainability criteria are gaining an increasing role within procurement criteria. Danish manufacturers must evaluate suppliers on cradle-to-gate CO₂ data and compatibility with renewable energy infrastructure. Examples include MiR’s aluminum chassis design that reduces emissions by 18% and ABB’s deployment of equipment that runs entirely on green electricity.

Purchasing managers within Odense’s mechanical engineering ecosystem focus on selecting flexible, cost-effective technologies; seamlessly integrating compliance safeguards; promoting sustainability; and intensifying collaboration with suppliers to support long-term operational excellence.

Optimization of Technology Choice and Financial Results.

Modular Cobots for High-Mix Production: Universal Robots’ UR20 cobot, equipped with field-upgradeable force-torque sensors and adaptive grippers, enables fast product changes and minimal downtime in specialized workshops.

Autonomous Mobile Robots (AMRs) and AI-driven Warehouse Drones: Mobile Industrial Robots (MiR) provide AMRs with navigation accuracy of less than 10 cm over private 5G networks, integrated with SAP Extended Warehouse Management for just-in-time logistics.

Edge AI for Real-Time Quality and Efficiency Monitoring: Arla Foods uses edge AI computer vision that captures 120 fps to detect anomalies on the filling line, leading to a 7% reduction in product waste.

Robotics-as-a-Service (RaaS) and Flexible Financial Models: OnRobot’s DLOY platform combines hardware and analytics through operating leases, reducing initial capital expenditures by about 60% and improving budget control.

Seamless Integration of Compliance into Procurement Processes.

AI documentation according to the EU AI regulation: transparency reports, risk assessments and evidence of limited risk AI design are required.

Sustainability data according to CSRD: Cradle-to-gate CO₂e emissions, energy consumption and supplier sustainability certifications must be transparent.

Verification of CE marking and EU machinery regulation: Up-to-date third-party certificates and complete technical files are mandatory according to Regulation 2023/1230.

Drone authorization according to EU Drone Strategy 2.0: Supplier Authorization Information Level (SAIL) III and operator licenses for BVLOS operations are required.

In addition, procurement teams can leverage public grant programs such as Innobooster and EU Recovery Fund green loans to reduce compliance costs.

Sustainability as a Strategic Procurement Pillar

Transparency in Suppliers’ Life Cycle Emissions: Cradle-to-gate CO₂e reporting in accordance with GHG Protocol is essential. MiR’s aluminum chassis design reduces emissions by 18%.

Technology Alignment with Danish Renewable Energy: Equipment optimized for green power – such as ABB’s deployment at Novo Nordisk for a 44% unit CO₂e reduction – provides competitive advantage.

Sustainable KPI frameworks in Supplier Assessment: Energy efficiency, recyclability and circularity in RFPs encourage environmentally friendly innovations.

Developing Supplier Partnerships with Focus on Skills and Change Management

Collaborations with Embedded Training and Upskilling: The Robot Academy at the University of Southern Denmark offers integrated operator training, which reduces adoption resistance and accelerates productivity.

Preferred Turnkey Solution Suppliers: Suppliers with full after-sales support and competency building reduce implementation time and increase ROI predictability.

Launch Pilot Projects with Modular Cobots and Cloud Analytics

Purchasing managers are advised to launch small pilot programs with modular cobots, such as models with field-upgradeable sensors and adaptive grippers. By integrating cloud-based analytics, monitoring and data-driven insights can optimize throughput and maintain operational flexibility in the face of labor constraints.

Phased Implementation of Drones

Given the EU Drone Strategy 2.0 and BVLOS requirements from 2026, a phased rollout of drones is crucial. Procurement teams should delay large-scale adoption until suppliers can demonstrate full certification and operator authorizations to mitigate operational and legal risks.

Strict Integration of Compliance and Sustainability Criteria in RFPs

Procurement documents should include transparency reports, risk assessments in accordance with EU AI Act, cradle-to-gate CO₂ footprints and sustainability certifications according to CSRD, current CE markings from Regulation 2023/1230 and SAIL III confirmations for drones as binding assessment factors.

Leverage Synergies within the Odense Robotics Ecosystem and Public Funding

Active collaboration in the Odense cluster increases access to innovative technologies. Purchasing managers should use grants such as Innobooster and EU Recovery Fund loans to reduce R&D and scale-up costs and strengthen negotiating positions.

Reposition Procurement as a Strategic ESG Driver

It is essential to position procurement as a driver of ESG initiatives. Supplier evaluations should support scope-3 emissions reductions and align with the organization’s low-carbon branding, ensuring sustainable automation investments.