The automotive industry continues to play a pivotal role in Europe’s economy, contributing €1 trillion in income and employing 13.8 million people in 2022, a significant portion of the EU’s GDP. This sector also channels €60 billion annually into research and development, bolstering innovation across the continent. Amidst the global upheavals caused by the Covid-19 pandemic, geopolitical tensions, and tightening regulatory environments, European firms are increasingly turning to nearshoring. This strategic move involves relocating production closer to European markets to fortify supply chains against disruptions. Consequently, there has been a surge in demand for industrial and logistics facilities, particularly in Central and Eastern Europe (CEE), Germany, and the Netherlands.
The availability of specialized industrial and logistics properties that seamlessly integrate into supply chains is crucial for companies reshoring or establishing new operations. Positioned as a key player in Europe’s logistics real estate sector, the largest listed operator and developer is meeting this demand across CEE and major automotive hubs. The shift towards nearshoring is impacting both local and international manufacturers. European companies are bringing operations back from abroad, while Asian counterparts are increasingly investing in European production sites. This trend is accelerated by tariffs imposed by the European Commission on imported electric vehicle components, prompting EV manufacturers and suppliers from Asia to establish footholds in CEE countries.
“We are adapting to better support our clients’ evolving needs in Europe,” emphasized the CEO. “With extensive land holdings across CEE, we are well-positioned to facilitate the growing trend of nearshoring and provide customized spaces for long-term growth.” CEE’s proximity to Western European markets, coupled with a robust manufacturing base, skilled labor pool, competitive costs, and strong market connectivity, positions it as an ideal hub for automotive manufacturing and logistics.
Inventec, a Taiwanese electronics manufacturer serving major automotive brands, exemplifies this trend with its expansion into CEE. “We are consolidating our European operations in CEE to mitigate supply chain risks and align with our customers’ sustainability goals,” explained a director. Success in attracting automotive clients underscores the region’s ability to provide comprehensive solutions tailored to industry-specific needs. Business parks offer superior infrastructure, including advanced logistics facilities and integrated security systems, crucial for automotive manufacturing and distribution.
As automotive production in CEE continues to expand, supported by regulatory frameworks and infrastructure investments, the region anticipates further growth. Industry experts foresee continued expansion, with both established and new manufacturers cementing CEE’s role as a vital hub in the global automotive supply chain.
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