Łódź, Poland Emerges as Prime Nearshoring Hub: Growing Potential for Foreign Investment in Central Poland
Łódź's investment attractiveness is expected to increase given the current global geopolitical and economic landscape.
Łódź's investment attractiveness is expected to increase.
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.
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.
1 KPMG 2024 CEO Outlook Pulse Survey
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
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.
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.
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