Investors want to be in Poland
Poland has a very good geographical location, which is currently one of the most important factors for the further continuation of the development of our country.
In the face of a very complicated geopolitical situation, as well as the disruption of supply chains due to the pandemic, together with the further complication caused by the ongoing war in Ukraine, many companies are making the decision to move their productions closer to their markets. Many of them are making such decisions because of competition with each other, so that they can continue to count in global trade.
Factors influencing foreign investment in Poland
Here, a very important criteria, when choosing a location are such conditions as the availability of well-connected land with the possibility of smooth movement of a given means of transport, e.g. a container, through the connection of road, rail and water routes. Poland is and will continue to be a beneficiary of the relocation of production, largely from the eastern directions (Reuters report, “A generational shift in sourcing”), as we have skilled workers, a stable economy and sustainable labour costs. The latter, however, are no longer the main argument in favour of investing in our country. Rather, it is the readiness of the Polish work force to constantly develop their skills and their willingness to improve their qualifications, which translates into a high quality of work.
Examples of modern industries investing in Poland
An example is the EV sector, which is present and very well developed in Poland, with newly established and further planned lithium-ion battery factories. Along with them, in the next stage, recycling plants will be built, as well as entire supplier and sub-supplier parks , and technology parks with research and developed centres. The ever-growing economic cooperation between Poland and South Korea has also resulted in an increase in the number of direct flights from Lower Silesia to Seoul, and the opening of a new ocean container service between Gdańsk and Seoul. Thanks to the continuous expansion of our ports, these are beginning to seriously compete with the largest ports in Europe. All of this also entails more jobs along the entire business connection chain.
Another example is building a supply chain in the semiconductor sector as a result of trade tensions between the US and China and Intel’s investment near Wrocław, and the planned future development of this sector in the Tri-City area.
Poland’s warehouse base
Due to many investments, manufacturing companies are becoming more and more important tenants of warehouse and industrial space. In terms of total storage resources, Poland is among the three largest in the European Union , behind Germany and France.
The leader in the warehouse space rental market in Poland is upper Silesia. Right behind it are the areas of Warsaw and Central Poland, Wrocław and the surrounding area and Poznań. Currently Poland is able to meet their demand at a level of 3.15 million Sq. metres of space
According to Oxford Economics, in the years 2024-2027 the economic growth of the Eurozone is forecast at about 6%, while our country’s is estimated at 11%, for the same period. Despite the current generally uncertain economic situation related to inflation and electricity prices, growth levels in most markets have been revised, however, our country continues to be one of the leaders in development. Therefore the demand for warehouse space will continue to grow.
Poland in the rankings
In the ranking of investment attractiveness of the countries of Central and Eastern Europe, China and Russia, conducted by the Polish-German Chamber of Industry and Commerce (AHK Polska) among member companies and chambers of the international IGCC network, Poland in 2023 is the undisputed leader and takes first place. As many as 92.7% of respondents would choose Poland as their place to do business in, again.
In the “Global Services Location Index 2023” ranking prepared by the international consulting company Kearney, Poland ranks second, after the United Kingdom, in Europe and moves up to 13th place in the world. The ranking was published for the twelfth time and assessed the attractiveness of 78 countries in terms of interest in investing in modern business services. The most attractive countries according to the ranking are India, China and Malaysia.
According to a report by EY analysing the value of foreign direct investments, in Poland in 2022 the amount increased by 23% compared to 2021, and the number of investments amounted to 237. The most attractive countries for investment were France with 1259, Great Britain with 929 and Germany with 832.