Central and Eastern Europe (CEE) has emerged as one of the most strategically important regions for global investment, manufacturing, logistics, and supply chain restructuring. Defined here as the Czech Republic, Slovakia, Romania, Hungary, Poland, Serbia, and Bulgaria, the region now represents a powerful alternative to saturated, high-cost Western European markets.
Driven by strong economic fundamentals, accelerating innovation, competitive labour markets and unprecedented infrastructure development, CEE has become the destination of choice for companies executing nearshoring strategies, building operational resilience and expanding into the European market.
At the same time, the role of business partner search has become central to success in the region. The rise of specialised platforms such as CEEind provides investors and manufacturers with efficient ways to identify distributors, logistics partners, integrators and service providers — removing one of the biggest barriers to market entry.
This long-form report explores:
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Why CEE is the “business-smart” region of Europe
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The structural advantages that set it apart
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Real-world case studies of global companies thriving in the region
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How nearshoring is transforming CEE economies
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What investors need to understand about talent, tax systems, innovation capacity, infrastructure and logistics
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Why CEEind is emerging as a key platform for entering and scaling in CEE
1. CEE’s Competitive Advantage: Why the Region Outperforms Europe
For more than two decades, CEE has represented one of Europe’s most dynamic growth regions. Today, it stands at the centre of three powerful forces shaping global business strategy:
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Nearshoring and supply chain relocation
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Digital and industrial transformation
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The search for resilient, cost-competitive operations
The fundamentals behind CEE’s rise can be grouped into six core competitive advantages:
1.1. A Business-Friendly Environment With Lower Costs
CEE countries offer a modern regulatory environment, straightforward company formation processes, and tax systems designed to attract investment. Businesses benefit from:
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Lower personal and corporate tax levels than Western Europe
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Employment costs that are a fraction of those in France, Germany or Italy
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Competitive social contributions and incentives for innovation and R&D
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High availability of land for industrial development
In the industrial and logistics (I&L) sector, net labour costs — including taxes minus subsidies — are roughly one-quarter of Western European levels. This cost advantage is especially compelling for manufacturing, automotive, electronics, machinery, and logistics-intensive companies.
1.2. Stronger GDP Growth Than Western Europe
CEE economies have consistently outperformed Western Europe for more than 20 years.
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Growth in the region remains above the EU average
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Forecasts for 2025–2029 show CEE outpacing Western Europe again
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Capital cities such as Warsaw, Prague and Belgrade are predicted to be the fastest-growing urban economies in the EU
This pattern of growth reflects rising domestic consumption, investment inflows, innovation capacity and strong export-oriented industries.
Foreign direct investment (FDI) data shows that CEE countries are increasingly chosen by global firms looking to access both EU and regional markets while maintaining cost efficiency.
1.3. Significant EU-Funded Infrastructure Investment
Infrastructure is one of CEE’s great success stories. Since the early 2000s:
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Motorway length increased by 283% in CEE (vs. 16% in Western Europe)
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Rail upgrades, intermodal terminals, and logistics parks have expanded rapidly
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Ports such as Gdańsk, Koper and Constanța are now competitive with leading North Sea container hubs
The European Union continues to channel billions in cohesion funding into:
The IMF estimates that every 1% of GDP invested in infrastructure yields 2–3% economic expansion over the following decade — a trend clearly evident across CEE.
1.4. A Strong Manufacturing Base With Increasing Complexity
CEE’s industrial tradition dates back centuries, particularly in the Czech Republic, Hungary and Slovakia. Today, all CEE countries rank among the top 15 in Europe for the share of workers employed in manufacturing.
The region excels in:
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Automotive and mobility systems
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Electronics and semiconductors
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Machinery and metal processing
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EV battery production
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Plastics, chemicals and advanced materials
This manufacturing strength continues to evolve toward:
Companies now view CEE not just as a cost-efficient manufacturing base, but as a place to locate engineering, design and innovation activities.
1.5. Rising Domestic Consumption and E-Commerce Growth
CEE consumers are becoming wealthier, digitally connected and increasingly aligned with Western European shopping patterns.
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Real expenditure per capita has grown 72% since 2010
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Disposable income growth is among the fastest in the EU
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E-commerce revenue is forecast to grow from €39 billion (2024) to €60 billion (2029)
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CEE e-commerce penetration is projected to rise rapidly, especially in Poland and the Czech Republic
This boom in retail and e-commerce is driving unprecedented demand for warehouses, fulfilment centres and last-mile logistics capacity.
1.6. Skilled, Cost-Effective Human Capital
CEE’s education systems produce a large number of engineers, technicians, IT specialists and manufacturing professionals. Romania, Serbia and the Czech Republic rank among the highest in Europe for shares of STEM graduates.
The region offers:
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A broad talent pool across industrial, technical and digital fields
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Strong English proficiency, especially among younger generations
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Competitive labour costs combined with high productivity
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An emerging trend of young professionals returning from Western Europe
CEE’s talent advantage is one of the main reasons global companies build long-term operations in the region.
2. The Role of Nearshoring: Why CEE Became Europe’s Operational Backbone
The pandemic, geopolitical disruptions and the fragility of long supply chains triggered a major shift: Europe’s manufacturers and logistics operators are moving production closer to their core customers.
CEE is now the leading destination for this shift.
Why?
Because the region offers:
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Short, reliable delivery routes
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Strong logistics infrastructure
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EU regulatory stability
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Lower costs
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Skilled labour
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Proximity to Germany, France, Italy and the Benelux markets
Poland ranks #1 in Europe for nearshoring attractiveness in multiple surveys.
Romania and the Czech Republic consistently appear in the global top 10.
3. Market Connectivity: CEE’s Logistics Advantage
CEE’s geographic position — at the crossroads of Western Europe, the Balkans and Eastern markets — gives it natural logistics advantages.
3.1. Road Networks and Corridor Upgrades
Motorway expansion and EU-backed road networks make cross-border trade fluid. Freight flows smoothly from:
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Poland → Germany, Scandinavia
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Hungary → Austria, Italy, Balkans
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Czech Republic → Germany, Benelux
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Romania → Turkey, Bulgaria, Ukraine
3.2. Air Connectivity Improvements
Air passenger and cargo traffic in CEE is growing faster than the EU average.
Key upgrades include:
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New terminals in Budapest, Prague, Sofia, Kraków
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Massive investment in Poland’s upcoming Central Airport (CPK)
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Expanded cargo capacity in key airports like Bucharest and Warsaw
3.3. Maritime Strength: Baltic and Black Sea Rise
CEE ports are becoming crucial nodes in European supply chains:
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Gdańsk is now Europe’s 5th largest port
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Constanța is growing as a gateway for SEE and Turkey
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Koper serves Central Europe with impressive capacity increases
These seaports support diversified shipping routes, increasingly important for resilience.
3.4. Schengen Expansion Enhances Mobility
As of 2025, Romania and Bulgaria joined the Schengen Area, eliminating border checks and improving logistics efficiency across the region.
4. Economic Growth and Diversification: A Region Outperforming Europe
CEE economies continue to diversify beyond traditional manufacturing.
Key areas of expansion include:
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Advanced electronics
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EV production and battery systems
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Software engineering and IT
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Robotics and automation
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Clean energy technologies
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Medical devices and pharmaceuticals
4.1. Economic Complexity and Innovation
Harvard’s Economic Complexity Index ranks:
These rankings reflect the region’s capacity to produce and export increasingly sophisticated products.
4.2. R&D, High-Tech Employment and Digital Transformation
All CEE countries rank in the top 55 of the Global Innovation Index.
R&D spending is rising steadily, driven by:
4.3. Stable Public Finances
CEE has significantly lower debt-to-GDP ratios than Western Europe.
This stability supports:
5. Real Estate Fundamentals: Why Industrial Investors Choose CEE
CEE industrial property markets offer three major advantages:
5.1. Lower Saturation and More Room for Growth
Western European markets are saturated, with high land prices and scarce expansion opportunities. In CEE:
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Per capita industrial stock is much lower
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Land availability is higher
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Permitting is generally faster (especially in Poland, Bulgaria and Serbia)
5.2. Greenfield Opportunities
Companies relocating supply chains require:
CEE offers all of these at attractive cost-to-build ratios.
5.3. Demand Outperformance
Net absorption (occupied stock growth) in Poland and the Czech Republic exceeds that of Western Europe, with strong forecasts for 2025–2029.
6. Expanded Case Studies: How Global Leaders Succeed in CEE
This section expands on the earlier examples, offering deeper insight into why global corporations choose CEE — and how business partner search determines success.
6.1. Inventec (Taiwan) – Consolidating European Electronics Production
Sector: Electronics & computer components
Locations: CTPark Modřice, Brno & Blučina (CZ)
Inventec’s decision to expand into a 52,600 sqm custom-built facility represents a milestone for Taiwanese electronics manufacturing in Europe.
Drivers for investment:
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Lower costs than Germany
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Skilled engineering talent
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Strategic location close to major automotive OEMs
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Ability to meet ESG and carbon reduction requirements by shortening supply routes
Why business partners mattered:
Inventec leaned heavily on local integrators, facility developers and workforce providers to adapt operations to European standards.
6.2. Vitesco Technologies (Germany) – EV Component Production Hub
Sector: Automotive & e-mobility
Location: CTPark Ostrava Hrušov (CZ)
With a €190 million investment, Vitesco created a central facility for EV electronics and control units.
Key advantages of Ostrava:
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Proximity to engineers trained in automotive mechatronics
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Supportive industrial ecosystem
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Sustainable infrastructure aligned with clean mobility goals
Partner search:
Finding a site developer capable of delivering a zero-emission-certified manufacturing plant was crucial.
6.3. TRUMPF Hüttinger (Germany) – Power Electronics for Europe
Sector: High-tech manufacturing
Location: CTPark Warsaw East (PL)
The company’s new facility supports Europe’s semiconductor, solar and precision manufacturing industries.
Reasons for choosing CEE (Poland):
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Large and cost-effective technical workforce
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Access to Central and Northern European markets
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Competitive utility costs
Business partners:
TRUMPF collaborated with automation integrators and logistics partners to ensure fast deployment.
6.4. DeJong (USA) – Heating Technology Manufacturing for Europe
Sector: Industrial heating equipment
Location: CTPark Prešov North (SK)
DeJong’s 33,000 sqm plant supports rising demand for hot water tanks across Europe.
Why Slovakia worked:
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Strong pool of industrial talent
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Proximity to CEE, SEE and Western Europe
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Competitive operating costs
6.5. LPP (Poland) – A Regional Fashion Distribution Powerhouse
Sector: Fashion retail & e-commerce
Location: CTPark Bucharest West (RO)
LPP built a regional SEE hub with capacity to handle:
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25 million items in storage
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6 million shipments per week
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Automated conveyor and future robotics systems
Why Romania?
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Excellent access to the port of Constanța
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Central distribution position for SEE
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Competitive labour market for logistics operations
6.6. Raben Group (Netherlands) – Multi-Market Logistics Network
Sector: Logistics & 3PL
Location: CTPark Warsaw West (PL) + 5 CEE countries
Raben’s 110,000 sqm distribution centre includes:
Their multi-country CEE presence reflects the region’s importance for European logistics.
6.7. Primark (Ireland) – Consolidated Distribution for CEE and Germany
Sector: Retail & fashion
Location: CTPark Bor (CZ)
The 80,000 sqm hub supports shipments to:
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Germany
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Austria
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Czech Republic
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Wider CEE region
High ceilings (16 m) and sophisticated sorting systems allow efficient high-volume fulfilment.
6.8. DHL – Carbon-Neutral Growth Across CEE
Sector: Global logistics
Locations: 16 CTParks across 5 CEE countries
DHL uses the region to support pan-European distribution while advancing its sustainability goals via carbon-neutral facilities.
7. Why Business Partner Search Is Essential in CEE Market Entry
Even though CEE is attractive, companies entering the region face critical questions:
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Which country offers the best fit for my sector?
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Where can I find distributors or integrators?
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Which industrial park developers are trustworthy?
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How do I evaluate logistics partners or subcontractors?
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Who can help with HR, compliance, and technical staffing?
This is where professional business partner search becomes indispensable.
Businesses expanding into CEE need:
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Reliable distributors
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Trusted 3PLs
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Qualified integrators and contractors
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HR and staffing firms
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Financial and legal advisors
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Local supply chain partners
Connecting with the wrong partner can delay projects, increase costs or even derail market entry.
8. CEEind: The Leading Platform for Business Partner Search in CEE
As the region’s complexity grows, CEEind is emerging as a leading digital platform that connects global investors with trusted companies across CEE.
What CEEind offers:
1. Business Partner Search
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Identify vetted distributors, integrators, logistics providers and service firms
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Filter by country, sector and business model
2. Market-Matching Tools
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Helps companies choose the right CEE country for their needs
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Provides insight on cost levels, sector expertise, workforce and logistics advantages
3. Screening and Qualification
4. Nearshoring Support
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Identify production locations
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Find build-to-suit developers
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Connect with automation and industrial service providers
CEEind is becoming a strategic tool for companies from Taiwan, South Korea, Canada, the USA, Japan and Western Europe looking to build scalable operations in the region.
9. The Future of CEE: Why the Region’s Momentum Will Continue
CEE is positioned to remain Europe’s growth engine for the next decade due to:
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A younger, more cost-effective workforce
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Expanding high-tech production
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Rapidly improving infrastructure
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Growing e-commerce markets
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Increasing innovation competitiveness
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Strong nearshoring demand
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Low public debt and solid fiscal stability
The region is not just catching up — it is shaping the future of European industry.
Conclusion: CEE Is the Smartest Place to Build, Scale and Future-Proof Your Business
Central and Eastern Europe offers a rare combination of advantages:
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Competitive costs
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Skilled labour
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Strategic market access
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Modern infrastructure
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Rapid economic growth
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A resilient manufacturing ecosystem
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A booming logistics sector
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High-tech innovation clusters
But success in CEE does not happen by accident.
It happens by working with the right partners.
Platforms like CEEind provide a decisive advantage, helping companies identify distributors, supply chain partners, integrators and service providers across the region — turning strategy into successful execution.
For companies looking to nearshore, expand or enter Europe, CEE is not just an option.
It is the smartest business destination on the continent.
