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Łódź, Poland Emerges as Prime Nearshoring Hub: Growing Potential for Foreign Investment in Central Poland

The Łódź agglomeration is rapidly becoming one of Europe's premier nearshoring destinations, according to a new report by KPMG in Poland, produced in collaboration with the City of Łódź. This trend, which involves relocating production closer to target markets, highlights the region's growing appeal for investors. Łódź's investment attractiveness is expected to increase given the current global geopolitical and economic landscape. Notably, Łódź ranks third in Poland for logistics and warehouse investments.

REPORT

As the global business landscape evolves rapidly due to globalization and technological advancements, companies worldwide are increasingly adopting strategies that enable them to effectively respond to new challenges and seize emerging opportunities. One key strategy is nearshoring, which involves relocating supply chains to more cost-effective locations closer to end customers. This approach aligns with the Environmental, Social, and Governance (ESG) agenda by reducing the carbon footprint of products and fostering sustainable business models.

The significance of companies' roles in sustainable practices is growing, driven by stakeholder expectations and a broad range of EU regulations. A sustainable value chain leverages a region's competitive advantages to enhance business operations. Poland, recognized as a leading nearshoring destination in Europe, is poised to become a primary beneficiary of this trend. Supporting this outlook, 33% of companies plan to emphasize sustainable sourcing in their future supply chain strategies, while 37% have recently integrated advanced robotics or automation into their warehouse operations[1].

Amid these transformative changes, Łódź has emerged as one of Poland's most promising business relocation destinations. Its favorable geographic location in Europe, robust transport infrastructure—including the unique advantage of a full freeway ring—the attractive system of investment incentives, and a well-developed warehouse market make it an ideal nearshoring hub. Additionally, Łódź offers a wealth of investment-ready land for manufacturing purposes. As Poland's fourth-largest city by population and third in terms of modern warehouse space, Łódź is well-positioned to attract and support foreign investment.

Łódź's strategic location within Poland and Europe is a key factor driving its increasing popularity among investors. The Łódź region boasts well-developed infrastructure and a highly skilled workforce from local academic centers. Global companies across various sectors—including logistics, manufacturing, business services, and IT—are recognizing this potential and are increasingly choosing to invest in the region, comments Monika Dębska-Pastakia, Partner Associate, Deal Advisory, Real Estate, KPMG in Poland.

Łódź offers not only a strategic central location, excellent transport infrastructure, and a highly skilled workforce; it is a city that prioritizes and enhances the quality of life for its residents, providing robust support for entrepreneurs at every stage of their investment journey. Łódź is a stable and business-friendly environment, ripe with opportunities. We are confident that Łódź and its metropolitan area will increasingly be recognized as a prime location for nearshoring, emphasizes Adam Pustelnik, First Deputy Mayor of the City of Łódź.

A new report by consulting firm KPMG, in collaboration with the City of Łódź, titled "Towards Łódź," highlights the region's strategic advantages for investors. The report underscores that Łódź is centrally located within a 1,000-kilometer radius encompassing 260 million people and is within 500 kilometers of major cities such as Berlin, Prague, Vienna, Bratislava, Budapest, and Vilnius.

Łódź boasts excellent connectivity, with two major highways (A1, A2) and two expressways (S8, S14), making it the only city in Poland with a complete expressway ring road. Additionally, the region offers high availability of attractive investment areas, particularly in the Łódź Special Economic Zone, where 400 hectares of land are available for investors in the manufacturing sector. This area is equipped with modern infrastructure and offers significant incentives, including prepared plots of land at competitive prices, tax exemptions, and free assistance with property tax exemption formalities.

For more detailed insights, see the full report "Towards Łódź" available here.

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About KPMG:

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. KPMG in Poland was established in 1990. It employs more than 2,300 people in Warsaw, Kraków, Poznań, Wrocław, Gdańsk, Katowice and Łódź.
 

About the report:
The report "Towards Łódź" developed collaboratively by KPMG in Poland and the City of Łódź, highlights Poland's growing appeal as a premier nearshoring destination, with a special emphasis on the Łódź agglomeration. This comprehensive study provides valuable insights for prospective foreign investors, detailing critical aspects such as human capital and education, logistics and transportation infrastructure, the advantages of the Łódź Special Economic Zone, strategic industry sectors, and the dynamic real estate market.

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Media contact – KPMG:

Krzysztof Krzyżanowski, E: kkrzyzanowski(@)kpmg.pl, M: +48 508 047 582

Patrycja Kowalczyk, E: patrycjakowalczyk(@)kpmg.pl, M: +48 664 718 676

Media contact – City of Łódź Office:

E: boi(@)uml.lodz.pl, T: 42 638 59 39
 

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