In 2023, a record EUR 7.4 billion of foreign investments flowed into the country, with the support of PAIH, mainly in the electronics, electromobility, automotive, machinery, renewable energy components, and food processing sectors. JLL Polska, the Polish Investment and Trade Agency, Hays, and ALTO present the new edition of the “Made in Poland” report, a compendium of knowledge for companies from the manufacturing industry sector considering establishing or expanding their presence in Poland.
The report focuses on the industrial production sector and covers issues related to the business environment, labor market, legal and tax structures, subsidies, and public support programs. It also presents trends in the real estate market and various purchase and rental options.
The authors draw attention to the business benefits resulting from Poland’s convenient location in Europe. The transport infrastructure in Poland, which is an important part of the European road and rail transport network, is constantly developing. Currently, it allows connections with most European capitals. The intersection of two key corridors, namely the A1 (Baltic-Adriatic Sea) and A2 (North Sea-Baltic States) motorways, has increased Poland’s attractiveness in terms of European logistics in the region.
Moreover, Poland offers access to two significant seaports in Gdansk and Szczecin. It is worth emphasizing that the total throughput of the 15 largest European container ports amounted to 79.7 million TEU in 2023 (from the first to the third quarter), of which Gdansk accounted for 3% of this result. Poland also has a chance to take advantage of the “new Silk Road”, which connects Europe with China by rail. This is a chance to strengthen Poland’s position as a key European distribution HUB for producers from China and other countries from distant Asia.
The industrial real estate market in Poland and throughout Europe is experiencing continuous growth. After the challenges of 2021 and 2022, the sector has proven its resilience, and market participants expect relative stability in the coming years. Poland is the sixth-largest industrial real estate market in Europe, with a diversified and modern asset portfolio. Rental rates for warehouse space are among the lowest in Europe and vary depending on the region. There is an increasing emphasis on compliance with ESG requirements, which influences the strategies of the largest players, and sustainable construction solutions are gaining value.
Another important aspect of the production sector in Poland is the growing number of technology and research and development centers that provide services to branches of companies abroad. They often combine roles with an international and even global reach. These centers employ highly specialized and interdisciplinary specialists who use their skills in engineering, manufacturing, and information technology.
The ongoing transformation towards Industry 4.0 emphasizes digital technologies and intelligent solutions in manufacturing. They will require the involvement of employees with engineering knowledge to operate advanced machines, as well as with the skills needed to work in an environment using artificial intelligence and robotics.
Poland already offers highly qualified staff, with over 2.8 million people employed in 2023 in the manufacturing sector. The interest of pupils and students in fields related to production and engineering remains stable – in the 2022/23 academic year, over 711,000 students studied at secondary technical schools, and over 206,000 in vocational schools.
A relatively large number of mid-level technical and operational employees, as well as automation specialists, is available on the market. With the low unemployment rate (average level of 5.1% in 2023, the third lowest in the EU), the quality of the potential jobs offered by employers is crucial for successful recruitment. Poland is no longer perceived as a cheap labor market but as a mature location offering high-quality expertise, technological progress, and ESG-compliant processes.
In addition, Poland has recorded a steady increase in the number of foreign workers, both from EU and non-EU countries. In 2022, more than one million foreigners were registered. Employing workers from other countries has become an integral part of the strategies implemented by local production organizations. Over the last five years, the number of registered foreign workers has increased almost 2.5 times.
As mentioned, in 2023 Poland recorded a record volume of foreign investments. Manufacturers investing in Poland can take advantage of many opportunities for financial support from both domestic sources and the EU. Attractive forms of subsidies are offered in the form of government subsidies and financial support for low-emission initiatives, support programs co-financed by the EU, tax exemptions, and tax relief for specific sectors.
Foreign investors who have so far developed their operations in Poland come from various countries around the world, including the USA (approx. EUR 4.6 billion worth of invested capital), Germany, and Great Britain, which were the leading countries. FDI projects created approximately 20,000 jobs in the mentioned period.
Automated solutions are becoming more and more available, especially in the case of “plug-and-play” systems. This factor will undoubtedly impact the industrial sector in the Central and Eastern European region in the coming years. In the longer term, major global manufacturing players will consider expanding into Europe to mitigate associated risks and reorganize their supply chain.