ARTICLES LABELLED WITH TAG nearshoring

Topband Smart Europe, a Chinese maker of controllers for power tools, home appliances and BMS, has inaugurated its production capacity for the European market in CTPark Timișoara.

Demand for modern industrial space is still considerably high though European manufacturing companies are not taking home their production as quickly as earlier expected. Meanwhile, Asian firms in the automotive industry are increasingly seeking proper warehouses and logistics service providers. Property Forum asked Máté Szoboszlay, Director of Capital Deployment at Prologis Hungary about the change in e-commerce-related demand and the special needs of Asian tenants.

Around 650,000 sqm of industrial and logistics spaces are under development in Romania, which once completed will be added to the stock of 6.3 million sqm that was operational at the end of 2022, according to a Colliers report.

The relocation of production facilities from far-away locations, such as Asia, is generating additional demand for industrial and logistics projects in CEE-based markets, with Romania being among the biggest beneficiaries, according to a Cushman & Wakefield report. 

European businesses have for years been shifting manufacturing to remote locations, targeting Asia Pacific in particular. Recent global turmoil has, however, disrupted supply chains, revealing the length and complexity of processes enabling the sourcing, transport and consumption of various products. Furthermore, the growing significance of sustainability is compelling companies to rethink their business strategies. This is naturally shifting the focus of business to nearshoring and… to Poland. Cushman & Wakefield estimates that warehouse occupancy and operating costs in Poland are even over 50% lower than in some Western European countries.

Serbia’s emergence as a manufacturing base with a skilled cost-effective labour force in close proximity to neighbouring EU markets is driving a surge in leasings and built-to-suit developments across CTP’s four industrial and logistics parks in the country.

The Czech Republic once again ranks high in the rating of the 47 best manufacturing destinations. Thanks to a good score in all criteria such as operating costs, labour, political and economic risk and the ability to bounce back after the coronavirus crisis, the country came fifth globally and first in Europe. Since 2016 when the Czech Republic was included in Cushman & Wakefield’s Manufacturing Risk Index for the first time, it has been ranked among the best manufacturing destinations on a regular basis.

Some companies are choosing to relocate production plants from Asia to Poland to diversify business activity and shorten supply chains. On the other hand, western firms are setting up factories in Poland to bring operating costs down and take advantage of a range of benefits with which individual regions want to attract investors, say experts from Cresa Poland.