A growing number of international companies have begun to consider moving their facilities towards the east of Europe as an effect of the pandemic of COVID-19 on European production. Most likely there will be more companies following steps taken by producers like Amazon, Tchibo, and Bosch who have already been using their premises in the Czech Republic to supply other European markets.
This was reported by Prochazka & Partners (P&P). Head of Transaction & Consulting Services, Petr Narwa, said that currently, as part of the nearshoring trend, they are looking for spaces for car components manufacturers or other manufacturing companies from Western Europe. The goal of all clients is not to rely on only one supplier but to diversify their manufacturing or warehouse portfolio all across Europe.
The significant advantage of construction in the Czech Republic is much lower costs than in Western Europe. In comparison to Germany, the Czech Republic is approximately 25 % cheaper, including 20-30 % lower renting costs and up to half lower staff costs.
Prepared by the team of CzechTrade/CzechInvest Israel.