In a new report on the Czech automobile industry, CBRE argues that suppliers are being forced to look for new locations because of a lack of space and booming demand. The traditional locations have reached or are close to reaching their capacity to absorb new investment, just as automotive demand has hit record levels. CBRE writes that the automotive sector was responsible for nearly one-third of all inquiries it carried out for production and storage areas in the first six months of 2015.
“We are constantly tracking the high demand of automotive suppliers for locations that have traditionally been in the scope of interest of foreign investors in this segment. New interest has also emerged for alternative locations, such as North Bohemia or Moravia. The labor market in these areas is not overly saturated and still meets key requirements – good infrastructure and existing industrial zones,” said Lukáš Šaling, a senior industrial consultant at CBRE.
Traditionally, suppliers have looked for space in or around Mladá Boleslav, Pilsen and near the TCPA plan in Kolín. Now, investors are willing to search in new locations like North Bohemia or across Moravia. Along with the automobile manufacturers present in the Czech Republic, CBRE writes that around 30 other car makers in the region motivate their suppliers to locate production in their vicinity. Labor costs are three times cheaper in the Czech Republic than they are in Germany and Austria.
