Efficient buildings help Poland to ride the nearshoring wave

The covid pandemic was the beginning of much of the current wave of companies “nearshoring” operations in Poland and elsewhere, according to LCube board member Adrian Biesaga.

“Disturbed supply chains and the growing cost of transportation has actually motivated some of the companies to move their production from the Far East, from China, from South America and back to to Europe,” he explained to Real Asset Media’s Richard Betts.

Biesaga said that while the costs of production and the cost of the workforce in Europe is slightly greater this is counterbalanced by the reduced cost of transport and the benefits of being in more efficient buildings which use more automation in the production process.

“So actually, the cost of the workforce is not that significant in the final cost of the product,” Biesaga said, adding that there is demand for both light and heavy production from producers returning from Asia and America.

“We’ve also been in negotiations for production space with companies coming from the UK Germany and France that are moving their production from other countries,” he said.

The “friendshoring” trend is becoming more pronounced because Poland is considered as an economically stable country with a relatively large workforce available.

“What is also slightly different to the rest of Europe is that we have still got a lot of land available to locate factories, light production, heavy production and warehouses,” he said.

Please click on the video above to watch the full interview or listen to the podcast below.