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In the face of global challenges, Poland is emerging as a key player, attracting investment and revitalizing its economy

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In the face of global challenges, Poland is emerging as a key player, attracting investment and revitalizing its economy

No one needs to be convinced that for many decades, the issue of co-opting has sought a compromise between cost efficiency and potential risks. First the pandemic, then the conflict in Ukraine, and finally the Middle East and the threats to free navigation in the Red Sea and Suez Canal area have led companies to increasingly decide to disperse their sources of supply, two – to relocate them so that, as far as possible, the customer and the contractor are not necessarily separated by an ocean. One or even two.

According to Capgemini’s latest report, “Reshoring manufacturing: reindustrialization strategies in Europe and the United States,” investment in reshoring, i.e., moving production back to the domestic market and building or upgrading manufacturing facilities, is on the rise in both Europe and the United States. Currently, 47% of large European and US companies have already invested in reshoring, and 72% are developing or have implemented a reindustrialization strategy[1]. For nearly 70% of companies surveyed, the primary driver for reindustrialization is the need to increase supply chain resiliency and the ability to adapt and respond quickly to operational disruptions.

Poland is a good location

Our country has made significant progress and is among the 25 countries that will attract significant foreign direct investment (FDI) in the coming years. Our success is based on the technological capabilities of Polish industry and the growing share of services exports – says Iwona Gramatyka, CEO of EXPO Katowice.

Also of note, Poland is the only country from Central and Eastern Europe on this list[2].

The report’s authors also note that labor costs are becoming less important in investment decisions. Investors cite the efficiency of legal processes (15%), ease of capital transfer (14%), transparency of regulations and low levels of corruption (13%)[3]

In April of this year, CEOWORLD magazine published its 2024 report, which ranks and analyzes 199 countries based on their business and investment environments. The magazine considers the ease of doing business and the mobility of investors and professionals as strategic factors in this analysis. Singapore was named the best country in the world in which to invest or do business in 2024. The United Kingdom came in second, followed by Taiwan, India and Indonesia. Spain ranked sixth, followed by Australia and Poland[4].

Justifying Poland’s place in the ranking, the authors of the compilation wrote: “Poland’s eighth place in the ranking reflects its emergence as a dynamic and fast-growing economy in Central and Eastern Europe. Thanks to its strategic geographic location, competitive labor costs and business-friendly environment, Poland has become a popular destination for foreign investment. The country’s solid infrastructure, skilled workforce and supportive government policies make it attractive as a center for manufacturing, services and innovation. In addition, Poland’s integration into the European Union provides businesses with access to a large and prosperous market, further increasing its attractiveness to investors.

[1] AutomatykaB2B, Reshoring produkcji w Europie i Stanach Zjednoczonych, https://automatykab2b.pl/gospodarka/58260-reshoring-produkcji-w-europie-i-stanach-zjednoczonych.

[2] Kearney, Continued optimism in the face of instability, https://www.kearney.com/service/global-business-policy-council/foreign-direct-investment-confidence-index/2024-full-report.

[3] Winged IT, Poland Emerges as Attractive Investment Hub in Global Ranking, https://wingedit.pl/it-industry-in-poland/poland-emerges-as-attractive-investment-hub-in-global-ranking/.

[4] CEOWORLD, Ranked: World’s Best Countries To Invest In Or Do Business For 2024, https://ceoworld.biz/2024/04/09/ranked-worlds-best-countries-to-invest-in-or-do-business-for-2024/.

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