Rapid Growth In CEE Creating Greater Demand For Warehouse Space

Logistics is one of the major enablers of trade and commerce growth in many economies. Tecdis Network – European Specialist Logistics together with the combined resources of its partners provide clients with successful solutions for technical distributions. They got their clients covered from laws and customs to local markets.

In terms of logistics sector, the CEE region is rapidly becoming a hub for industrial demand. The percentage of real estate investors that are targeting European logistics has more than doubled from 27% in 2012 to 59% in 2016. Eurostat predicts an increase of 36% across the European Union by 2050 with the CEE region experiencing the largest growth with Poland at 54% and the Czech Republic at 46% well above the average.

According to Robert Dobrzycki, CEO of Panatonni Europe, the CEE region occupies an extremely good position in Europe for the growing sectors of e-commerce and production. Meanwhile, Martin Polic, managing director and regional head of CEE region at Prologis, told Emerging Europe that investment volume at central and Eastern Europe logistics and real estate reached a record level of about €13 billion in 2017. This drove developments in the CEE and the rapid growth of e-commerce that also created greater demand for warehouse space.

The logistics sector in Eastern Europe is fairly young. Full outsourcing of logistics services which was already common in the western markets since the early 2000’s is just starting to appear in the CEE. One example is Poland that has 13.4 million square meters of modern warehouses today. This is 22% more than in 2016.

Another significant driver of growth is the relatively cheap labourcosts and warehouse space in the CEE. It has started to attract companies like Amazon Slovakia and Alibaba Poland. Based on estimates, labour cost per hour in 2017 for the EU-28 was €26. In Denmark, it was €42while in France it was €36 and Germany €35.

A wide range of technical logistics is being offered by Tecdis Network – European Specialist Logistics to a variety of sectors that require the company’s special knowledge and expertise. Tecdis works in close conjunction with the right technological partners in the field to provide the European market with technical logistics.

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