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. Global real estate services firm Cushman & Wakefield estimates that warehouse occupancy and operating costs in Poland are even over 50% lower than in some Western European countries.
Retreating from Asia
Before the pandemic, nearshoring, reshoring and friendshoring were just theoretical concepts in global supply chain management. Now, in the aftermath of the pandemic and hostilities in neighbouring Ukraine, the relocation of assembly and manufacturing plants closer to the final production place or consumer markets is no longer just a buzzword but a real phenomenon which is expected to gain traction on the Polish warehouse market,
says Damian Kołata, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE, Cushman & Wakefield.
An opportunity for Central and Eastern Europe
For European manufacturers, operating in Central and Eastern Europe means shorter delivery times, lower transport costs and faster order fulfilment. This benefits many sectors, including automotive, industrial and electronics. Investors eyeing this part of Europe also include consumer goods and fast fashion companies,
adds Adrian Semaan, Senior Research Consultant, Industrial & Logistics Agency, Cushman & Wakefield.
Poland in the spotlight
Cushman & Wakefield estimates that over 50% of Poland’s warehouse stock amounting to over 30 million sq m dedicated to logistics and production was built in the last five years. What’s more, within the European Union, Poland is only behind Germany, France and the Netherlands in terms of warehouse stock. It also led the way in the EU for new warehouse supply last year. Poland has also seen an impressive growth in demand – in 2022 it came second behind Germany for warehouse take-up. This solidifies our position as a major international logistics and manufacturing hub,
adds Damian Kołata.
“A survey carried out by Cushman & Wakefield[3] has clearly revealed that warehouse occupancy and operating costs in Poland are 34% lower in the Czech Republic, 45% lower than in Spain and as much as 62% lower than in Germany. These figures speak volumes and are likely to be a strong incentive for other international investors,
concludes Damian Kołata.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.