Poland continues to attract significant foreign investment, driven by reorganized supply chains, a demanding labor market, and evolving business expectations. The country remains a hotspot for industrial investment, thanks to its strategic location, robust business environment, advanced infrastructure, and government incentives. In 2023, Poland saw a record €7.4 billion in foreign investments, facilitated by the Polish Investment and Trade Agency (PAIH). These investments spanned sectors like electronics, electromobility, automotive, machinery, renewable energy, and food processing.
Key Insights from the “Made in Poland” Report
The “Made in Poland” report, published by JLL Polska, the Polish Investment and Trade Agency, Hays, and ALTO, serves as a comprehensive guide for manufacturing companies eyeing Poland. The report highlights Poland's strengths in the industrial production sector, including the business environment, labor market, legal and tax structures, and available subsidies and public support programs.
Strategic Location and Infrastructure
Poland’s strategic position in Europe, coupled with its developed transport infrastructure, enhances its appeal for logistics and distribution. The intersection of major European transport corridors, such as the A1 (Baltic-Adriatic Sea) and A2 (North Sea-Baltic States) motorways, strengthens Poland's logistics capabilities. The country also boasts significant seaports in Gdańsk and Szczecin, facilitating robust maritime trade. Additionally, the “New Silk Road” rail connection between Europe and China positions Poland as a crucial European distribution hub.
Industrial Real Estate Market
Poland is the sixth largest industrial real estate market in Europe, featuring a diverse and modern asset portfolio. The sector has demonstrated resilience and is expected to maintain stability in the coming years. Warehouse rental rates in Poland are among the lowest in Europe, and there is a growing emphasis on ESG compliance and sustainable construction solutions.
Thriving Industrial Sectors
Poland's industrial sector is flourishing across various domains, including automotive, FMCG, medical, electronics, household appliances, and packaging. There are significant investments in heat pump production and electric vehicle battery manufacturing, aligning with global trends. Polish manufacturing facilities increasingly adopt advanced technologies, automation, and sustainable practices, adhering to ESG standards.
Growing R&D and Technology Centers
Poland is witnessing an influx of technology and R&D centers, offering specialized services with international reach. These centers employ highly skilled professionals in engineering, manufacturing, and IT, further bolstering Poland's industrial capabilities.
Investment Incentives and Support
In 2023, Poland recorded a historic level of foreign investments, with substantial support from the Polish Investment and Trade Agency. Investors benefit from various financial support opportunities, including government subsidies, EU-co-financed programs, tax exemptions, and relief for specific sectors. The business-friendly “Constitution for Business” and advancements in e-administration and tax digitization create a favorable environment for entrepreneurs.
Educated Workforce Meeting Industry Needs
Poland's transition towards Industry 4.0 emphasizes digital technologies and intelligent manufacturing solutions. The country offers a highly qualified workforce, with over 2.8 million people employed in the manufacturing sector in 2023. The steady interest in production and engineering fields among students ensures a continuous supply of skilled labor. Additionally, the increasing number of foreign workers enhances Poland's labor market.
Future Outlook for Poland’s Manufacturing Sector
Foreign investors from the USA, Germany, and the UK have significantly contributed to Poland's industrial growth, creating approximately 20,000 jobs in 2023. As global manufacturing shifts towards automated and environmentally sustainable solutions, Poland is well-positioned to capitalize on these trends. The focus on green real estate and supply chain optimization will drive the industrial sector’s growth in the coming years.
In summary, Poland’s strategic location, advanced infrastructure, skilled workforce, and supportive business environment make it a prime destination for foreign industrial investment. The country’s commitment to innovation, sustainability, and economic stability ensures its continued attractiveness to global investors.
