Nearshoring Advantage: CEE as Europe’s Factory Hub

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In 2025, one trend is reshaping European manufacturing faster than any other: nearshoring.

After decades of offshoring production to distant, low-cost regions, a growing number of manufacturers are making a strategic shift—bringing operations closer to home. And at the center of this transformation lies Central and Eastern Europe (CEE).

Low-cost labor alone no longer drives decision-making. Today’s competitive edge comes from resilience, speed, control, and yes—cost efficiency. And when you evaluate all four, the nearshoring advantage becomes clear.

CEE isn’t just catching up. It’s becoming the factory floor of Europe.

Why Nearshoring Now?

Three years of shocks—pandemic shutdowns, shipping delays, trade disruptions—exposed just how fragile global supply chains had become. In response, companies began asking tough questions.

Do we really need to wait 30–40 days for goods from Asia?

Are we too dependent on a single region?

And most importantly: what’s the real cost of being far away?

Those questions led to action. In 2024 alone, foreign direct investment in manufacturing across CEE jumped 28%, with Hungary and Poland seeing record inflows. This isn’t a trend. It’s a strategic pivot.

Companies now understand that nearshoring isn’t just a backup plan—it’s a competitive advantage.

Why CEE? The Right Balance of Cost, Talent & Location

CEE countries—like Poland, Hungary, Czechia, and Romania—offer a unique value proposition that few other regions can match.

1. Location that delivers

A factory in Slovakia can reach Munich in under 10 hours by truck. Products assembled in Romania can be in Italy or France within days—not weeks. For European companies, that’s not just convenient—it’s transformative.

2. Skilled labor at competitive cost

CEE countries produce thousands of engineers and technicians annually, yet wages remain up to 60% lower than Western Europe. This combination means high-quality output without premium labor costs.

3. Modern infrastructure, EU access

Billions in EU investment over the last decade have turned CEE into a logistics powerhouse. Highways, rail links, and industrial parks now support fast, efficient movement of goods across the continent.

4. Government incentives and stability

Corporate tax rates in Hungary sit at just 9%—among the lowest in Europe. Many CEE nations offer grants, tax holidays, and special economic zones for manufacturers ready to invest and create jobs.

In short, CEE combines affordability with reliability. It’s not just cheaper—it’s smarter.

Who’s Moving In?

This shift isn’t theoretical. It’s happening on the ground, right now.

• BMW is building a €2 billion EV plant in Hungary, set to open this year.
• Intel has committed €4.6 billion to a semiconductor facility in Poland—its biggest investment in the region.
• Stellantis and Volkswagen are expanding in Poland and Slovakia, turning CEE into an electric vehicle hub.
• Even global e-commerce players like Amazon and DHL are building logistics hubs in the region to serve European customers faster.

From EVs to semiconductors, from logistics to pharmaceuticals—manufacturers across industries are choosing CEE as their launchpad for the next decade.

CEE vs. Other Nearshoring Destinations

What about Turkey? Or North Africa?

While regions like Morocco and Türkiye offer advantages in labor costs or proximity, CEE has a distinct edge when it comes to:

• EU membership, meaning smoother cross-border trade and consistent regulations.
• Cultural and timezone alignment, essential for real-time collaboration.
• Faster overland logistics—critical in industries where responsiveness matters.

For companies serving European markets, CEE is often the simplest and most strategic fit.

Nearshoring Sounds Great. But Execution Matters.

This is where companies often get stuck.

You’ve chosen the country. Secured incentives. Maybe even purchased land.

But who’s going to run the project? Oversee local hiring? Align quality standards with HQ? Hit those production deadlines?

That’s where interim leadership makes all the difference.

At CE Interim, we’ve supported companies across CEE through:

• Greenfield site launches
• Post-merger factory integrations
• Supply chain relocations
• Talent acquisition for key operations roles

Whether it’s an interim COO for your Slovak plant, or a program manager to oversee supplier onboarding in Hungary—our network delivers ready-now leadership that keeps your expansion on track.

Because a strategy is only as strong as its execution.

Final Thought: Don’t Miss the Window

The nearshoring advantage isn’t a future trend. It’s a present-day opportunity.

CEE is open for business, and the early movers are already locking in prime sites, top talent, and local incentives. The companies that hesitate? They’ll pay more—and wait longer.

If you’re thinking about where your next factory, warehouse, or supply line should go—look east. Not far east.

Just east enough to stay close, fast, and in control.

📌 Ready to explore your options in CEE? CE Interim can support your transition with interim leadership and local execution expertise—without slowing your momentum.

Let’s talk strategy.