23008_Nearshoring Report

CENTRAL & EASTERN EUROPEAN COUNTRIES

• These countries – including Poland, Hungary, Czechia, Slovakia, Slovenia, Bulgaria, Romania, Serbia, Croatia, the Baltic States and the Western Balkans – are enjoying increasing interest from businesses considering nearshoring due to low labour costs relative to Western, Southern & Northern European countries and indeed relative to some Asia Pacific countries as well as close geographical proximity and strong transport links which mean shorter journey times, lower transport costs, shorter order lead times and greater flexibility in ordering.

• Low labour costs relative to Western, Southern & Northern European countries and indeed relative to some Asia Pacific countries • Close geographical proximity and strong transport links mean shorter journey times, lower transport costs, shorter order lead times and greater flexibility in ordering

• CEE countries are actively benefiting from the nearshoring phenomenon across a range of sectors. The automotive and machinery, electricals & electronics sectors in CEE look set to enjoy a focus of investment in these evolving segments, in part due to their proximity but also because geopolitical factors are creating strong incentives to locate within Europe. • Close proximity, low cost of labour, free and open trade and the potential for lower environmental and social impact mean that apparel and consumer goods businesses have also been choosing to invest in CEE countries.

• Key locations in the CEE are those located in proximity to the German and Austrian border but also those with good transport links and strong labour markets. As well as primary production locations, CEE countries also have the opportunity to offer key logistics hub locations; as the weight of production and movement of goods stretches eastwards, the operational and cost efficiency benefits to locate distribution centres along key transport corridors in CEE countries becomes more compelling.

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