As Western Europe faces mounting economic pressures, businesses are increasingly considering relocating to Romania to capitalize on cost efficiency, stability, and long-term growth potential.
Romania, now a fully integrated member of the Schengen Area for air and sea travel, has emerged as a standout destination for companies seeking to relocate or expand their operations.
A Shifting Business Landscape in Western Europe
The economic environment in Western Europe is becoming increasingly difficult for manufacturers, automotive companies, and logistics providers. Rising wages, volatile energy costs, and ongoing political uncertainty are straining profit margins and slowing growth.
In Germany and France, labor costs continue to climb as inflationary pressures ripple across industries. Energy prices, driven by geopolitical instability and supply chain disruptions, show little sign of returning to pre-crisis levels.
Political fragmentation in Western economies is driving unpredictable policies, complicating long-term strategies for businesses.
Companies are shifting east to Romania for affordable labor, a strong talent pool & infrastructure primed for advanced manufacturing & digital operations.
Romania’s Schengen Entry – Why It Matters for Businesses
Romania’s accession to the Schengen Area in 2024 is a pivotal moment for companies considering relocating to Romania, offering tangible benefits that streamline operations and expansion.
By eliminating air and sea border controls, Romania’s integration streamlines the movement of goods, services, and personnel.
For industries that rely on fast, cross-border supply chains—such as automotive and manufacturing—this reduction in transit times can lead to significant cost savings. The free movement of goods without customs delays enhances Romania’s attractiveness as a production and logistics hub.
The Cost Advantage – Why Romania Is Winning Over Western Businesses
Labor costs in Romania are significantly lower than those in Western Europe. In some cases, businesses can expect to pay 40-60% less in wages for skilled labor compared to Germany, France, or Italy. This doesn’t mean compromising on quality or productivity.
Romania’s workforce is highly skilled, with thousands of engineers, IT professionals, and manufacturing specialists graduating from local universities each year.
Ford Otosan, Dacia, Bosch, & Continental have expanded in Romania, scaling production without the labor shortages seen in Western markets.
The country’s competitive wages extend beyond labor-intensive industries. IT services, R&D, and high-tech manufacturing thrive in Romania, leveraging world-class talent at a fraction of Western European costs.
Romania’s Infrastructure – A Hidden Asset for Growing Companies
Romania isn’t just a low-cost labor market—it’s a digital powerhouse. Ranking 4th globally in fixed broadband speed at 205.74 Mbps, Romania outpaces many Western countries in digital connectivity.
For businesses integrating Industry 4.0 technologies, this digital infrastructure is a game-changer. Smart factories, IoT systems, and cloud-based operations thrive in environments with reliable, high-speed internet—factors that make Romania an attractive destination for advanced manufacturing and tech-driven industries.
Moreover, Romania’s physical infrastructure continues to improve. Expansions in highway networks and upgrades to the Port of Constanta bolster the country’s standing as a key logistics and distribution center for European markets.
Success Stories – Leading Brands Investing in Romania
Global automotive and manufacturing leaders have already recognized Romania’s potential. Dacia (Renault Group) produces over 322,000 vehicles annually from its plant in Mioveni, generating more than €5.23 billion in revenue.
In Craiova, Ford Otosan operates one of its most efficient plants, rolling out nearly 191,000 vehicles in 2023.
Major Tier 1 suppliers like Bosch & Continental continue to expand their operations, further solidifying the country’s role as a crucial link in Europe’s automotive supply chain.
These companies aren’t simply outsourcing to Romania—they’re investing for the long term, expanding facilities, & using Romania as a base for exports across the EU.
Addressing Common Concerns About Doing Business in Romania
Despite Romania’s advantages, some companies hesitate due to lingering myths about the country’s stability and infrastructure. Let’s set the record straight.
I. Myth 1: Romania Lacks Political Stability
The reality is that Romania maintains political stability and benefits from strong EU governance and oversight. As a member of the European Union, Romania adheres to EU trade policies and investment regulations, ensuring a predictable business environment.
II. Myth 2: Low Labor Costs Mean Lower Productivity
Romania’s workforce is known for its productivity and technical skills. The country consistently ranks among the top in Europe for engineering and IT graduates, ensuring a steady stream of talent ready to meet industry demands.
III. Myth 3: Digital Infrastructure is Underdeveloped
Romania’s digital infrastructure is among the best in the world. With faster broadband than many Western nations, the country is more than capable of supporting high-tech industries, advanced manufacturing, and digital services.
CE Interim – Guiding Your Business Expansion into Romania
Relocating to Romania or entering the market is no small task. That’s where CE Interim provides the leadership and expertise to ensure smooth transitions.
As the only international ideiglenes irányítás company with direct operations in Romania, CE Interim provides the leadership & expertise businesses need to ensure smooth transitions.
A címről factory relocations & piacra lépés to mergers, acquisitions, & operational optimization, our interim managers bring decades of experience to every project.
CE Interim’s deep understanding of the Romanian market ensures your business hits the ground running—minimizing risk and maximizing efficiency.
Final Thoughts – Is It Time to Move East?
As Western European businesses face rising operational costs and increasing uncertainty, Romania offers a compelling alternative. With low wages, a skilled workforce, Schengen integration, & strong infrastructure, Romania is set to be Europe’s next manufacturing & tech hub.
If your company is exploring cost-saving opportunities or considering expansion, now is the time to explore what Romania has to offer.
📞 Ready to discuss your next move? Kapcsolat CE Interim today to learn how we can support your relocation and expansion strategies in Romania.