From Low-Cost Hub to Europe's Strategic Production Platform
A conversation with František Průša for remtalk by remspace.
CEE is no longer just a cheaper alternative to Western Europe - it has become the continent's primary manufacturing and logistics platform. In this interview, iO Partners explores what that shift means for investors, occupiers and the countries competing for the next wave of industrial investment, with energy security, automation and supply chain resilience now driving every major location decision.
From Cost Play to Strategic Platform
A decade ago, CEE was broadly understood as a low-cost alternative. That framing no longer holds. The region is now considered central to Europe's industrial development - defined by talent quality, operational efficiency and reliability rather than price. Automation, energy availability and supply chain resilience have become the primary drivers, and the countries best positioned to deliver on all three are pulling ahead of the rest.
A Two-Speed Market Is Already Taking Shape
Core locations with strong energy infrastructure, permitting certainty and deep talent pools are attracting the majority of new investment. Secondary locations defined primarily by cost or motorway proximity are losing ground. American, European and Asian investors each approach CEE with different priorities - scale and speed, sustainability and supply chain backup, or long-term government-supported commitment - and the market is increasingly structured to serve all three differently.
The Czech Republic - Strengths, Weaknesses and What Needs to Change
The Czech Republic remains one of Europe's most sophisticated industrial markets, with a strong engineering heritage, skilled workforce and unmatched central location. But energy availability is becoming a structural liability - the country is already losing deals to Southern and Western European markets with stronger renewable access. Labour quantity and permitting certainty are the other two areas where targeted reform would make the most immediate difference.
Industrial Parks in 2036 - Ecosystems, Not Sheds
By 2036, leading industrial parks will function as integrated ecosystems - rooftop solar, EV charging, micro-grids, water harvesting and AI-driven automation working as a connected whole. AI is already pushing up power consumption and building heights faster than most of the market anticipated. Sustainability has shifted from compliance to competitive advantage: occupiers are investing in resilience because the cost of downtime now far exceeds the cost of mitigation.
FAQ
How has geopolitics changed industrial decision-making?
Supply chain risk used to be resolved near the end of a transaction. Now it is decided in the boardroom before companies come to market - meaning the real estate market sees less deliberation than it used to, because that deliberation has already happened elsewhere.
What does the CEE market most underestimate right now?
Energy security. CEE is already losing deals to Southern and Western European locations with stronger renewable energy access — even where those markets have less reliable grids. Grid reliability alone is no longer enough.
If you had €1 billion to invest in CEE industrial infrastructure today, where would it go?
Poland for scale and growth - but with a meaningful allocation to the Czech Republic, still the most sophisticated manufacturing location in Europe and one with structural advantages that are difficult to replicate anywhere else in the region.
Want the full picture? Listen to the complete podcast episode for the detailed analysis behind these headlines.
Regional Director • Industrial Agency
