Increased operating costs make Romania eighth most attractive manufacturing market in Europe
The increase in labor, real estate, and energy costs places Romania in the 8th position among the most attractive manufacturing markets in Europe, after countries such as the Czech Republic, Poland, Hungary, or Portugal, while also being ranked 22nd globally, according to the Manufacturing Risk Index 2022 study from the Cushman & Wakefield real estate consultancy company.
The study analyzed 45 countries from the EMEA, America, and Asia-Pacific regions, using 12 criteria that take into account the market conditions, costs, and risks, with Romania being highly competitive in terms of costs and market conditions. The world’s most attractive industrial markets are China, the United States, Taiwan, India, and Canada.
“Although 2022 has been a challenging year, with inflation, rising energy prices, a potential economic crisis, and a conflict in the region, we are witnessing an increased interest from foreign investors towards manufacturing. The pressures on the supply chain and also the relocation of production units from Ukraine and Russia have generated interesting projects in our region,” said Andrei Brînzea, Partner at Cushman & Wakefield Echinox.
“[…] we are pleasantly surprised to notice that Romania is still an attractive market for these potential investors, based on our active discussions. We are optimistic that in 2023 we will see more and more projects of this kind and we also believe that it will be an exciting year despite the challenges that lie ahead,” he added.
The report argues that the increase in energy and labor costs had a significant influence on the operating ones in Central and South-Eastern Europe, especially in Lithuania, Romania, Bulgaria, and the Czech Republic, unlike Poland, where the effects were more limited. Under pressure from higher volatility regarding energy prices and facing challenges in securing fuel, countries in the region may, however, come out stronger as they move away from fossil fuels and toward sustainable energy sources like renewables and nuclear energy.
Cushman & Wakefield is one of the global leaders in commercial real estate services. The company is active in over 60 countries. The team in Romania includes over 80 professionals and collaborators.
(Photo source: Cushman & Wakefield)
