23008_Nearshoring Report

Similarly, CEE countries have attracted manufacturers of apparel , particularly where they are labour intensive operations, and consumer goods . Being closer to the markets of consumption means that there are opportunities for greater flexibility and speed to market but CEE countries also offer lower costs, particularly labour and transport costs, and lower environmental impact by shorter transportation requirements.

CEE countries are well connected to other European countries by a range of transport routes and most goods will be transported by road and rail. Key transport corridors along major motorways and at key multimodal points between CEE countries to Western European destinations, particularly through Bulgaria, Romania, Serbia, Croatia, Hungary, Slovakia, Slovenia, Czech Republic and Poland, will be important potential locations for occupier activity. These countries have already proven attractive and logistics and industrial take-up in these countries has grown strongly in recent years.

LOGISTICS & INDUSTRIAL TAKE-UP BY COUNTRY

In December 2021, Sport Mechanical Workshop , a key partner with Decathlon, opened a new 23,000 sqm bicycle factory in Timișoara, Romania, representing a EUR 30 million investment. The company currently builds frame at the factory and mounts components made in Asia onto the frames but has hopes to be able to source products from within the same area as well as expanding production to e-bikes. Nearby, in September 2022, German company Corratec also opened a new 30,000 sqm electric bicycle factory in Timișoara, choosing Romania to reduce its dependence on Asian production and following searches for appropriate locations for a new factory in southern Germany and in Austria. WORKSHOP & CORRATEC SPORT MECHANICAL

20

15 MILLION SQM

2020 - 2022

2017 - 2019

2014 - 2016

10

5

0

BULGARIA SLOVAKIA

HUNGARY

ROMANIA CZECH REPUBLIC POLAND

SOURCE: Cushman & Wakefield Research

95

96

C U S H M A N & WA K E F I E L D

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