Tailor Your Business in Lodz 2023

LOGISTICS AND PRODUCTION GEOGRAPHICAL DETERMINANTS OF ACTIVITIES

ESSENTIAL FEATURES FOR LOGISTICS

By contrast, for logistics providers and retailers, key factors in locating distribution and warehouse centres are the geographical distribution of sales points and access to main transport routes. Research shows that transportation costs generally account for more than 50% of the supply chain costs. Choosing the right location for a warehouse is therefore critical to a company’s bottom line. Companies providing logistics services from Poland to Western Europe have taken a particular liking to locations near the German border while those operating throughout Poland often have their central warehouses in Central Poland or nearby. Well-connected locations in non-urban areas with easy access to motorways and fast roads are optimal for logistics facilities. With further road infrastructure improvements, individual regions or parts of cities can see their popularity grow or wane following the completion of a new stretch of road. Warehouse lease costs are a major factor impacting location decisions by both logistics and manufacturing companies. They vary according to location and type of space, and are usually driven by market forces such as current trends, demand and supply, land prices and construction costs. A mature local market will have a wider choice of potential locations for tenants. Other magnets attracting companies seeking to acquire new space will also include regional investment incentives and the open and entrepreneurial approach of local governments. To sum up, a number of factors are likely to influence companies’ decisions to locate production and logistics facilities - these include geographical criteria, the type of business operations or purely financial aspects such as a simple profit and loss account. Each region in Poland has its own specific features that attract more manufacturing or logistics companies than others. Central Poland, which benefits from its geographical position, transport network and access to the interchange of the A1 and A2 motorways, proximity to consumer markets (Łódź lies close to many large cities such as Warsaw and Poznań) and its industrial past, attracts companies from various industries. It is an optimal location for a setting up a new production plant or a new distribution centre.

TAILOR YOUR BUSINESS IN ŁODŹ | PUBLICATION BY CUSHMAN & WAKEFIELD

16