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Poland | Industrial market 2017 New locations New possibilities Logistic centres vs. labour market

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Page 1: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

Poland | Industrial market 2017

New locations New possibilitiesLogistic centres vs. labour market

Page 2: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

2 New locations, new possibilities – logistic centres vs. labour market | Poland | Colliers International

ContentsIntroduction 3

Economy 4

Location 4

Economic Growth 4

Labour Costs 4

Population 4

Industrial market in Poland 5

Investment Lands 6

Development process 7

Map of Poland – new locations 8

Białystok 9

Częstochowa 12

Kielce 15

Konin 18

Legnica/ Bolesławiec 21

Lublin 25

Radom 29

Rzeszów 32

Zielona Góra 35

Labour Market in Poland 38

Page 3: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

3 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

We observe growing activity of developers as well as interest from tenants, for whom in particular we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special attention to transport infrastructure, investment lands and availability of employees that begin to lack on the most popular markets. Together with Randstad – the leading company specialized in human resources – we would like to answer the question where to situate logistic and distribution centres, so that apart from good transport infrastructure and location near to main trade routes, the investors can effectively find necessary employees.

Introduction

Dominika Jędrak DIRECTOR, RESEARCH AND CONSULTANCY SERVICES [email protected] +48 666 819 242

Paweł Kopeć INTERNATIONAL ACCOUNT & BID MANAGER [email protected] +48 605 216 184

Thanks to the dynamic development, Polish industrial market year by year increases its importance in the CEE region.

Page 4: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

4 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

EconomyPoland is the largest country in Central and Eastern Europe and the eleventh largest economy in the European Union in terms of GDP value. The eastern border of the country is at the same time the eastern frontier of the EU. The country borders on four European Union member countries (Germany, the Czech Republic, Slovakia and Lithuania). Poland’s major advantages include

> LOCATION The enlargements of the EU, which incorporated states located in Eastern Europe, resulted in the shifting of the European centre of gravity in this direction. As a result, Poland gained as a transit country between the east and west as well as the north and south of Europe. Another advantage of the country is its access to the Baltic Sea, where cargo ports are located. In the past few years, there has been a dynamic development in the transport infrastructure, which has further increased the investment attractiveness of Poland.

> ECONOMIC GROWTH Poland stands out in the EU because of its relatively high GDP growth. In last years the Polish economy has grown on average by 3% annually, while the EU average at that time was at 1.5%. The dynamics of economic growth slowed down, while estimated GDP at the end of 2016 was at 2.8%. It is estimated that at the end of 2017 GDP growth will reach the level of 2.7%. The main factors in terms of GDP dynamics in next two years are investment activity, export boost and private consumption.

> LABOUR COSTS Compared to the other EU member states, Poland has still competitive labour costs attractive for investors. Average labour cost levels in Poland (wages, training costs, insurance contributions and taxes) are approximately three times lower than the EU average.

> POPULATION Poland is the sixth largest EU member state in terms of population and the largest one to join European Union after 1986. Approximately 1.5 million of the 38 million population of Poland are students studying at higher education institutions. Each year another 0.5 million graduates enter the Polish labour market. The country competes not only on its relatively low (compared with the rest of EU) wages but also on its large pool of qualified labour.

POLAND IN EUROPEAN UNION

Source: Colliers International

GDP GROWTH RATE (%)

3,7%

4,8%

1,8% 1,7%

3,3% 3,5%2,8% 2,7%

0%

1%

2%

3%

4%

5%

6%

2010 2011 2012 2013 2014 2015 2016 2017*

GDP *prognosis

TOTAL LABOUR COSTS IN 2016 (EUR/H)

0

2

4

6

8

10

12

Bulgaria Czech Republic

Poland Romania Slovakia Hungary

EU 28 average: EUR 29.5

Source: Colliers International

Source: Colliers International

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5 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Industrial market in Poland > At the end of 2016, the total supply of modern industrial space in the main markets in Poland reached approximately 11.2 million m2. There are nine main markets: Warsaw (3 zones), Upper Silesia, Wrocław, Poznań, Central Poland, Tricity, Kraków, Toruń-Bydgoszcz and Szczecin. Among the above mentioned markets, Warsaw (2.86 million m2), Upper Silesia (2.01 million m2), Wrocław (1.4 million m2), Poznań (1.58 million m2) and Central Poland (1.37 million m2) are the largest in terms of total existing space.

> Polish industrial market is still growing. From 2014 to 2016 approximately 3.3 million m2 of modern space was delivered to the market, while 2016 turned out to be record-breaking with approximately 1.3 million m2. Currently over 1.5 million m2 remain under construction out of which 76% are already leased.

> 2016 turned out to be record-breaking in terms of supply and demand. The volume of transactions was higher by over 600,000 m2 than in 2015 and at the end of Q4 2016 it reached a level of 3.32 million m2.

> The vacancy rate in the Polish market was 5.4% (compared to 4.6% in Q4 2015)

> Effective rental rates in the main industrial markets in Poland remain stable for a long time. The highest rents are observed in Warsaw (Zone I) and Kraków and it is caused by high prices and low availability of lands. In the upcoming quarters we do not predict any changes in terms of rental rates.

> In coming quarters the dynamics of industrial market growth will remain stable considering both supply and demand. We predict further development of smaller industrial markets (Toruń/Bydgoszcz, Lublin, Rzeszów, Szczecin) as well as new locations.

> We expect further expansion of German and Scandinavian companies which build their distribution centres mostly in the western part of Poland. The further industrial inflow from other European countries and USA will be observed. BTS agreements will still have a big share in the market and further BTO transactions will be observed (known also as fee development), in which clients commission developers to build warehouses for ownership.

> Worth mentioning is the fact that the access to the qualified manpower and close proximity of academic centers (not necessarily located in the largest agglomerations) is more often the main factor for logistic and production companies while deciding to choose specific location.

Source: Colliers International

SUPPLY AND VACANCY

0%

2%

4%

6%

8%

10%

12%

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

supply vacancy rate

m2

RENTAL RATES

REGION MIN (EUR/M²/MONTH)

MAX (EUR/M²/MONTH)

Warsaw Zone I 3.50 4.80

Warsaw Zone II 1.90 2.90

Warsaw Zone III 1.90 2.70

Central Poland 1.90 2.90

Poznań 2.10 2.70

Upper Silesia 2.00 2.70

Kraków 2.80 4.50

Wrocław 1.90 3.20

Gdańsk (Tricity) 2.20 2.90

Toruń / Bydgoszcz 2.20 2.80

Szczecin 2.40 3.50

Lublin 2.40 2.90

Rzeszów 2.50 3.20

Source: Colliers International

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6 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Investment Lands > Availability of lands is a significant factor for investors in terms of choosing the location. Quite often the possibility of purchasing properly prepared land allows companies to once and for all make a decision about their location.

> The real estate market analyzed in this report operates holding on to the supply and demand law, however, due to the nature of properties and their low liquidity it is slower to react to the changing market conditions. The low liquidity of properties is related to the time needed to prepare for their disposal, which in turn has slows down the reaction to the increasing demand for a specific type of properties at the local market.

> The local authorities supported by government institutions, including Special Economic Zones, have or had the key role in preparing attractive conditions to invest in the locations mentioned in our report.

> The entities invest speculatively in technical infrastructure and utilities, by providing utility connections to properties and preparing legal and administrative framework. This is of particular importance since most investors expect to be able to start developing the investment soon after deciding on the location – the time usually ranges from 12 to 24 months. That is why the offer of state-owned properties is the first choice for a considerable part of investors and this offer is the first to meet the demand for investment lands. Most of the locations described in the report have Special Economic Zones, which in many cases have at their disposal lands available to investors. Examples of such locations include Zielona Góra, Legnica, Białystok and Radom.

> When the offer of state-owned properties is unavailable or limited, there are greater opportunities to buy privately-owned lands. This results from the land owners’ response to the growing demand. The advantages of private properties include no need to participate in public procurement procedures, shorter acquisition procedures, possibility to negotiate the price. In such locations as Rzeszów, Lublin or Częstochowa, where the availability of attractive state-owned properties is limited, investors seek opportunities to acquire

privately-owned lands. The fewer offers of this type can be found on the market, the more vital it becomes how much work has already been done to prepare the land for investments and how advanced such preparations are – companies are willing to buy lands which still require utility connections or planning consultations.

> The most important factor in the choice of investment locations for logistic operators is the place where the property is situated, while the decisive factor for large manufacturing plants is the human capital. In any case, however, also the cost of land acquisition matters in the decision-making process. Depending on land availability on local markets, the prices in the analysed locations range from PLN 40 per square meter in Zielona Góra to as much as PLN 250 for privately-owned lands in Rzeszów. The relation between the price and land supply may be illustrated on the example of how the situation changed in the Lublin market: land within economic zones was sold there at about PLN 100 per square meter, but once the supply of available state-owned properties was exhausted, the investors had to turn to the private market, which offers land at approximately double this price. Yet, it should be noted in this context that compared with other countries in Central and Easter Europe the cost of land acquisition is relatively low, which is one of the key factors contributing to the inflow of foreign capital to Poland.

> Changes to Polish legislation may have an adverse effect on the availability of land and consequently, on the costs of land acquisition. The year 2016 saw amendments to the Act on the Structuring of the Agrarian System, which prevents free trade in agricultural lands with the area exceeding 3,000 m². In the understanding of the Polish law, restrictions were introduced on the possibility of acquiring land which is not to be used for purposes other than agricultural according to the local zoning and land development plans. Considering that approved local zoning and land development plans still cover only a small part of the country, a gradual reduction of the supply of lands suitable for the development of industrial and logistic investments and the consequent increase in the prices of such lands should be expected.

Page 7: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

UP TO 5 MONTHS UP TO 4 MONTHS 4 - 6 MONTHS 2-4 WEEKS 1 - 4 MONTHS

1 Depends on whether the plot is purchased from a private or a public owner.2 If the plot is bought from a public owner, a building permit can be applied for only after finalising the purchase. Otherwise, the investment stage can start earlier. 3 Depends on the tenant.

* In the event that the developer owns land with a building permit, it is possible to speed up the start of work and shorten the whole process by up to 4 months (only by a substitute building permit procedure).

** The above process can be extended or shortened, depending on the particular case.

Preparation of industrial space - investment process

PROCEDURES AND TIME FRAMES

10Entry of the tenant

to the building and starting production32

Purchasing a land plot1

3 Creation of an environmental impact report

4 Applying for

a building permit (required:

building design, environmental impact report

and independent environmental

decision)2

1Defining the

specification of space required by a tenant and

detailed verification of production

processes to be conducted at the site

8Acceptance of the building by e.g. Provincial Sanitary

and Epidemiological Stations (SANEPID), fire

services, General Office of Building Control, Labour

Inspectorate

5 Obtaining

an environmental decision

6 Obtaining a building

permit

7Construction

work

9Applying for a use permit

(or modification of an existing one – in the event when no

new building is developed, but only the adaptation of space in

an existing property)

Source: Colliers International and P3 Logistic Parks

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8 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Map of Poland – new locations

Source: Colliers International / Randstad Polska

S3

6

5

19

19

8S5

S8

S7

S7 S17

S8

S7

S7

S22

S5

25

20 21

20

2140

23

17

22

8

A2

BIAŁYSTOK 25

BIAŁYSTOK

WARSZAWA

KATOWICE

ŁÓDŹ

KRAKÓW

GDAŃSK

TORUŃ

LUBLIN

RZESZÓW

WROCŁAW

SZCZECIN

POZNAŃ

BYDGOSZCZ

KIELCE

A8

A6

A4A4

A4

A1

A4

A2A2

A2A2A2

A1

A1

A1

A1

CZĘSTOCHOWA

KONIN

RADOM

ZIELONA GÓRA

BOLESŁAWIEC

ŚWIDNIK

LEGNICA

Motorways

Expressways

Roads under construction

National roads

Number of the largest employers within 30 km from city centre

Employees availalbility rating by Randstad Polska: - total lack of employees;

- good access to the labour force in comparison with the national average.

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9 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

BiałystokLocation > Białystok is located in central part of the Podlaskie voivodeship in north-eastern Poland. As a result of its location near the border with Belarus, the city is a significant trade center between Poland and eastern Europe.

> The city economy is based on developed electric machinery, wooden and processing industries.

> Tarnobrzeska and Suwalska Special Economic Zones operate in the region. At the end of 2015 there were over 33,000 employees in almost 300 companies in both zones.

Infrastructure > S8 route connecting Białystok with Warsaw and further with Wrocław will be finished in next 3 years. Part of this route is at the same time the part of Via Baltica trial.

> Another expressway connecting Białystok with the Polish-Belarussian border is planned. The whole route will cover the distance between the polish borders with Slovakia in Barwinek and Belarus in Kuźnica Białostocka. The route will cross such cities as Krosno, Rzeszów and Lublin.

> Railway line connecting Białystok with Warsaw, that will be a part of Baltic Countries project – Rail Baltica (Berlin to Helsinki via Warsaw, Kaunas, Rigga and Tallin) is at the advanced stage of construction. Polish part between Warsaw and Sadowne commune (between Warsaw and Ostrów Mazowiecka) is already finished, while the whole railway line should be finished by 2021.

Real estate market > In terms of modern industrial parks constructed by domestic and foreign investors, the industrial market in Białystok is not yet developed. In the region there are no large warehouses either existing or under construction or even at the advanced stage of planning. Local and international companies operate in private objects, build for their own use, for example

INFRASTRUCTURE IN REGION

Cargo airport: n/a

Cargo railway station: 3 km

Source: Colliers International

175

277

585

663

660

140

50

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

Białystok

DISTANCE TO POLISH BORDERS FROM BIAŁYSTOK (km)

UNEMPLOYMENT RATE (2016)

Bialystok

9%

HUMAN RESOURCES

Population at working age

POPULATION 295,981

Population at mobile age*

63.7%40.7%

*people capable of changing a job title, work place or reskilling at the age of 18-44 ( CSO: Population at working age involving population at the age of 18-44).

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

SUEMPOL SP. Z O.O. Food products manufacturing 900

ROSTI POLAND SP. Z O.O. Plastics processing 800

BARTER S.A. Liquefied gas distribution 550

264

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

3,844.68 PLN

Page 10: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

Polmos Białystok S.A – liquor manufacturer or Suempol Sp. z.o.o – one of the biggest vendors of finny products in Poland.

> Despite lack of undergoing investments, the largest developers have already secured lands, where new modern warehouses can be constructed, which evidence the potential of Białystok region.

> One of the most popular locations in the city is the area located east of centre of Białystok in Starosielce neighbourhood region, near drive-in entry to the city from the side of S8 expressway. There are plenty of production companies as well as small warehouses for distributional purposes. Moreover, a railway runs across the area. Most of the lands either guarantee the access to the railway siding or the possibility to build one.

> Another development area for industrial market are the lands located near the S8 expressway towards Warsaw. DB Schenker decided to choose this location by creating one of its departments near the ramp from the bypass road, around 20 km from Białystok city centre.

Labour market > The population of Białystok amounts almost 300,000 inhabitants out of 67% is in the working age. The unemployment rate is at 9% and the salaries are by 10% lower than in other parts of the country. Those aspects makes Białystok region have good access to manpower. Well developed infrastructure allows inhabitants to have easy access to each part of the city – also Suwalska Special Economic Zone where operate the most of companies, mainly with foreign capital.

10 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

BIAŁYSTOK

25

277

200

Białystok

Warszawa

Lublin

248

Olsztyn

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – PODLASKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 93 286 507

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 1,398 6,640 8,432

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 200 309 453

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 285 332 982

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM BIAŁYSTOK (km)

PODLASKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

In the region of Białystok there are no major problems with access to workers, who may gain experience in manufacturing plants from a variety of industries – mainly plastics processing, electrotechnology and mechanics. At present, the highest demand is for production workers (skilled and unskilled), manufacturing machine operators, operations maintenance specialists. The demand for warehouse workers skilled to operate forklifts is also growing dynamically. Local technical schools and tertiary education establishments are willing to cooperate with employers in the region in order to provide qualified personnel and improve qualifications of both those in work and the unemployed. Białystok Research and Technology Park is successful in its activities aimed to foster the cooperation between science and business.

Krzysztof Gralak Commercial Manager

Randstad Inhouse Services Central and North–Eastern Poland

Białystok can be attractive to potential investors above all in terms of its ample human capital, development of infrastructure, transport and logistics, as well as revitalization schemes. Two major transport routes converge in Białystok: the S8 road and the Warsaw-Grodno (Belarus) railway line. The latter has been renovated at its Warsaw – Białystok section and by the end of 2018 is expected to enable transport at a speed of 150 km/h.

The city has completed a considerable part of the ring road surrounding it and at present work is in progress on the final section of the ring. This will allow smooth transport (that by passes the city) between, for instance, Warsaw and Suwałki, Ełk, Siedlce or Lublin. Moreover, there are plans to modernize the DK 19 road connecting Białystok with Lublin.

In terms of logistics and logistic centres, Białystok cannot be compared with such markets as Warsaw or Poznań, however, its location in the subzone of the Suwałki Economic Zone, where such companies as Bianor (producer of plastic goods), Rosti (producer of components for white goods manufacturing), Masterpress (printing house) and Nibe-Biawar (producer of hot water storage tanks and utility water heaters) situated their plants, contributes to an enhanced attractiveness of the region.

Both within the city of Białystok and in the region there are facilities whose present condition and their past functions qualify them to benefit from the initiatives of revitalization of post-industrial areas. The Voivodship Marshal’s Office plans to spend EUR 40 million on the development of logistic infrastructure by the end of 2018.

Knowledge and well-prepared, qualified employees embodying this knowledge are currently becoming the primary drivers of the region’s economic development. Białystok is a city with plentiful human capital, even though until now this potential has remained largely untapped

Katarzyna Musiał Associate

Industrial and Logistics Agency Colliers International Poland Sp. z o.o.

11

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12 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

CzęstochowaLocation > Częstochowa is located in southern Poland near S8 expressway connecting Warsaw with Katowice. It is the biggest city in northern part of Silesian voivodeship.

> City economy is based on metalurgy industry – geographics location of Częstochowa allows city to have an access to plenty iron ores so that industry, with many matallurgical and production factories, is highly developped. ISD Huta Częstochowa is one of the biggest steel manufacturers in Poland.

> Częstochowski Park Przemysłowo-Technologiczny consisting of three industrial clusters – construction and infrastructure, polymer manufacture as well as administration, operate in the city.

> Subzones of Katowicka, Wałbrzyska and Łódzka Special Economic Zones operate in the region. Investment lands located around analyzed area are a part of KSSE, which at the end of 2015 provided with 59,000 jobs in approximately 220 companies. Total area of the zone amounts to over 2,300 ha, out of which 1,500 ha are already developed.

Infrastructure > During next two years, part of A1 motorway, connecting Częstochowa with Pyrzowice (including Częstochowa baypass road) and merging with already existing roads towards Zabrze and Katowice (DK1 and A1 motorway).

> Also development of A1 motorway from Częstochowa to Piotrków Trybunalski is planned, after which, the whole route will cover the distance between Gdańsk and Katowice.

> Railway from Warsaw to Katowice ensuring access to carbon arterial road (Górny Śląsk coalfield – Gdynia) runs across Częstochowa. Those connections as well as ability to use railway sidings, strenghten Częstochowa’s position in terms of transport infrastructure.

> The nearest Cargo airport is located in Pyrzowice. Part of A1 motorway planned to be completed in 2019 will provide Częstochowa with motorway connection with airport in Pyrzowice.

INFRASTRUCTURE IN REGION

Cargo airport: 58 km

Cargo railway station: 4 km

Source: Colliers International

496

307

136

153

339

460

322

Częstochowa

Germany

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM CZĘSTOCHOWA (km)

UNEMPLOYMENT RATE (2016)

Czestochowa

6.3%

HUMAN RESOURCES

Population at working age

POPULATION 228,179

Population at mobile age*

61.2%36.4%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

TRW POLSKA SP. Z O.O. Automotive parts manufacturing 4,500

STOLZLE CZĘSTOCHOWA SP Z.O.O

Glass products manufacturing 900

CSF POLAND SP. Z O.O. Automotive parts manufacturing 850

221

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

3,644.53 PLN

Page 13: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

Real estate market > The total supply of modern industrial space on Częstochowa market is highly limited. In 2004 Silesia Logistic Park located in Kolonia Klepaczka (expressway Częstochowa-Katowice) was delivered to the market by Immofinanz. The object with total area of 17,000 m2 was acquired by Logicor in Q4 2016 and leased to Nowakowski Piekarnie.

> About 45 km from Częstochowa, in Radomsko there is another Logicor warehouse with total space of 32,000 m2 completed in 2012 by Panattoni in BTS formula, long-term leased by Manuli (production of automotive componentry).

> In the region there are not any warehouses either under construction or at the advanced stage of planning. However developers have already secured lands near Częstochowa, especially alongside built A1 motorway from Częstochowa to Pyrzowice, which is planned to be completed halfway through 2019.

> Częstochowa is situated at a distance of 70 km from Katowice, one of the largest industrial markets in Poland, offering over 2 million m² of modern space.

> Enterprises operating in Częstochowa are mainly located along the railway lines crossing the city. The companies based in the northern part include Stolzle (glass manufacturing) and Sila (car part manufacturing), those in the south: Stradom (textiles and polypropylene yarn) and Ekomat (cardboard packaging manufacturing). Other industrially developed areas are situated to the south-west from the city centre in the vicinity of the coking plant Koksownia Częstochowa Nowa (GST Automotive, CSF Poland, Guardian Częstochowa).

Labour market > An analysis of the current trends on the local labour market indicates that unemployment rate is higher than in Katowice or Gliwice within the same voivodeship, which translates directly into access to a larger pool of labour force. Salaries are slightly lower than in the above mentioned cities, which generates real savings for enterprises on labour costs.

13 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

KATOWICE

A1

A1

A1

CZĘSTOCHOWA 20

Warszawa

Katowice

Łódź

Kraków

Wrocław195

220

12575

130

Częstochowa

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – ŚLĄSKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 660 1,515 6,120

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 10,883 33,869 83,706

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 16 14 89

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 108 172 881

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM CZĘSTOCHOWA (km)

ŚLĄSKIE VOIVODESHIP

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Expert

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Częstochowa is a city steeped in history, with well-developed educational and cultural facilities. Every year almost 13,000 people complete their education in tertiary and upper secondary schools here. That provides a vast potential for the economic development of the city in terms of both expanding the existing companies and new investments. The city’s economic history has been linked to metallurgy, which makes it easier for companies in this region to access qualified technical personnel. Recent years have also seen a dynamic growth of investments in the automotive sector. The best example of that is the arrival at the local market of such companies as Guardian, TRW or Brembo. An additional advantage of the city is its location within an easy access to the A4 (Berlin-Lwów) and A1 (the Baltic-Ostrava/Brno) motorways, at a distance of 80 km from Katowice, as well as further plans of investments in roads, including the extension of the A1 motorway from the Pyrzowice/Katowice airport to Częstochowa.

Michał Ujma Senior Branch Manager

Randstad Staffing Katowice

14

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15 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

KielceLocation > Kielce is the biggest city situated in the central part of the Świętokrzyskie voivodeship, in north eastern Poland at the route between Warsaw and Kraków.

> The city’s economy relies to a considerable degree on the metal industry. The region is attractive to investors representing the machine and metallurgy sectors. Numerous manufacturing companies operate in Kielce, including NSK Bearings Polska S.A, as leading manufacturer of bearings for the automotive industry. Moreover, the city has its Kielce Fair conference centre. In terms of the number of exhibitors it is the second biggest organisation of trade fairs and similar events in Central and Eastern Europe, with 221,000 individual visitors and 7,000 companies annually.

> Within the Kielce subzone – the Starachowice Special Economic Zone, modern infrastructure and lands for development are offered by the Kielecki Technology Park. It brings together science and business and provides space for international projects. Companies operating on the area of the Kielecki Technology Park may use the amenities offered by the park and benefit from tax incentives.

> Investment lands located in the vicinity of Kielce are part of the Starachowice Special Economic Zone, which at the end of 2016 provided 6,973 jobs. The area of the zone is 644 ha, of which developed lands account for about 473 ha.

Infrastructure > The S7 road is now being extended between Skarżysko-Kamienna and Radom. One it is completed, Kielce will be communicated to Warsaw by a major road all along the way. The construction works are planned to be completed in 2017-2018. The S7 road is also being built between Kielce and Sędziszów and the completion is planned for 2017. The next fragment of the road, communicating Sędziszów with Kraków is at a planning stage.

> The Kraków – Warsaw railway line crosses Kielce. Additionally, sidings can be connected on selected lands for development situated along railways.

INFRASTRUCTURE IN REGION

Cargo airport: n/a

Cargo railway station: 3 km

Source: Colliers International

511

253

201

232

507

482

300

Kielce

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM KIELCE (km)

UNEMPLOYMENT RATE (2016)

Kielce

7.7%

HUMAN RESOURCES

Population at working age

POPULATION 198,046

Population at mobile age*

61.10%38.32%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

NSK BEARINGS POLSKA S.A Bearings manufacturer 1,500

MESKO S.A Munitions manufacturing 1,100

DS SMITH POLSKA S.A Packaging manufacturer 700

266

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

3,845.52 PLN

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> The nearest airport with a cargo terminal is situated in Kraków, and the communication will be provided by the S7 major road.

Real estate market > Kielce do not offer yet any modern warehouse space for lease, and developers have not decided to start building on the Kielce market. However, there are plans to build a logistic park in Kajetanów (13 km from Kielce). The development by 7R Logistics, located at the S7 major road, is to provide about 17,000 m² of modern industrial space.

> At about 100 km to the south of Kielce lies Kraków, whose offer of industrial space in 2016 was 247,000 m2, with 23,900 m2 under construction. Given the limited availability of lands for development on the Kraków market, Kielce becomes an interesting alternative for investors.

> Enterprises which operate in Kielce and need large areas use privately-owned properties. Kielce does not have a clearly designated industrial area its manufacturing plants are located throughout the city. The companies operating in the north include Delfo Poland (steel sheet manufacturing) and Centrostal (metallurgical products), those in the south: Effect Glass (glass manufacturing) and Mostostal (steel structures).

Labour market > The advantage of Kielce, besides the availability of labour force, is the salary level. Salaries here are decidedly lower than those offered in western and central regions of Poland. The University and the Politechnika Świętokrzyska, which is ranked among the best in Poland, educate highly qualified personnel in both humanities and engineering.

16 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

S7

KIELCE 21

Warszawa

Katowice

Łódź

Kraków

Wrocław

156

350

117

152 180

Kielce

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – ŚWIĘTOKRZYSKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 193 556 1,691

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 7,289 16,736 27,849

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 5 1 17

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 14 10 181

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM KIELCE (km)

ŚWIĘTOKRZYSKIE VOIVODESHIP

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Expert

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Kielce is a city with a population of 200,000, situated in the south-central part of Poland. That location ensures rapid and convenient communication with other cities throughout the country. The city can boast its dynamically operating Kielce Technology Park, which offers support and amenities, especially for new investors. One of the largest economic zones in Poland, the Special Economic Zone in Starachowice with its numerous subzones, is developing in the vicinity of Kielce. The city’s predominating industries include automotive, metal and construction sectors. The employment rate stands at 7.7%, which is one of the highest levels among all voivodeship capitals. The still high employment and industry concentration offer the opportunity to recruit a large number of unskilled manufacturing workers and specialists (welders, assemblers, fitters, CNC operators). Companies, especially manufacturing ones, which plan to invest in Poland should decidedly consider Kielce as a potential location.

Mateusz Rutka Branch Manager

Randstad Staffing Kielce

17

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KoninLocation > Konin is situated in central Poland, in the eastern part of the Wielkopolskie voivodeship between Łódź and Poznań at the A2 motorway, which is part of the international route Berlin-Moscow.

> Due to the lignite deposits, energy industry developed in the city – there are 4 power plants, which supply energy meeting a large part of the national demand for power. Moreover, thanks to the presence of the power plants, the city has Poland‘s only aluminium works.

> The Łódzka Special Economic Zone operate in the region. Although Konin does not have its own designated subzone, near the city there are areas included in the Łódzka Special Economic Zone – Koło, Słupca and Turek. The total area of the zone is over 1,300 ha, of which developed lands account for about 1,000 ha.

Infrastructure > Konin is located at the A2 motorway, which communicates Poznań with Łódź and is part of the European route E30 (Cork in Ireland – Omsk in Russia), one of the major east-west road routes in Europe. The communication to the motorway is provided by two hubs: Konin – West and Konin – East.

> Konin is crossed by the railway line, which is part of the international Berlin-Moscow (Frankfurt on the Oder, Poznań, Warsaw, Terespol) route. A hub station located in Konin is a meeting point of a few railway lines. The railway station in Konin is among the major ones in the Wielkopolskie voivodeship. Moreover, there are plans to build a modern railway cargo terminal.

> The nearest airport with cargo services is situated in Łódź, where several cargo handling operators, including Lufthansa Cargo, SAS Cargo, Swiss WorldCargo and LOT, are present.

18 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

INFRASTRUCTURE IN REGION

Cargo airport: n/a

Cargo railway station: 1 km

Source: Colliers International

360

484

428

302

272

513

460Konin

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM KONIN (km)

UNEMPLOYMENT RATE (2016)

Konin

10.3%

HUMAN RESOURCES

Population at working age

POPULATION 75,875

Population at mobile age*

61.5%37.7%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

IMPEXMETAL S.A. ALUMINIUM KONIN

Metal parts manufacturing 700

SAINT-GOBAIN HPM Tools and

abrasive materials manufacturing

630

FUGO ZAMET SP. Z O.O.Industrial machines manufacturing and

maintenance 400

90

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

3,790.14 PLN

Source: Colliers International

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Real estate market > In Konin there are 2 modern industrial facilities with a total area of 53,000 m². The smaller of them – Logit warehouse with an area of over 13,000 m² was built in 2007. It is planned to be extended with another 27,000 m². The second project in the market is the Goodman Konin building, built in the BTS formula for Polo Market. It was completed in 2007 and offers almost 40,000 m². Both warehouses are fully leased for a long term.

> Moreover, in the region there are four modern warehouse facilities with a total area of 66 100 m2. The largest one was built in 2013 in the BTS formula for Lear – 32,300 m2.

> At a distance of slightly over 100 km from Konin there is Poznań to the west and Łódź to the east. These rank among major warehouse markets and offer in total over 25% of the existing modern industrial space in Poland.

> At the end of 2016 the Poznań market offered over 1.58 million m² of industrial space with almost 215,000 m² under construction. Vacancies in Poznań accounted for about 7.3% of the industrial space.

> An area with a visibly higher concentration of warehouse facilities in the surroundings of Poznań is located in Września. The first building of a warehouse complex (5,300 m²) developed by Panatoni was built there. The planned total area is over 43,000 m².

> Central Poland with Łódź at its heart is the 4th largest warehouse market in Poland (after Warsaw, Silesia and Poznań), offering about 1.37 million m². In 2016, the market received 172,000 m² with almost 80,000 m² under construction. Vacancies accounted for less than 2% of the total warehouse space.

> The attractiveness of the region is confirmed by BTS projects located near Konin that include warehouses developed by Panattoni for K-Flex (manufacturing) in Wielenin (16,000 m²) or Kellogg in Kutno (13,000 m²).

Labour market > Thanks to the access to a number of renowned universities situated on the territory of Wielkopolska, Konin provides job candidates with both good theoretical and practical skills. Most candidates declare knowledge of foreign languages. The region also attracts numerous workers from Ukraine and Belarus, who are granted work permits in Poland.

19 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

S5

S8

S5POZNAŃ

A2 A2 KONIN20

Warszawa

Katowice

Łódź

Kraków

Wrocław

180

317 384182

218Konin

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – WIELKOPOLSKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 1,810 2,870 9,118

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 21,028 57,665 123,197

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 46 51 163

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 208 313 1,275

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM KONIN (km)

WIELKOPOLSKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

The advantage of this location is its proximity to the A2 motorway, which connects agglomerations situated in central Poland (Warsaw, Łódź, Poznań) with Germany. Thanks to that, clients of logistic centres located in the vicinity of Konin may distribute goods both in Poland and in Germany. Another significant consideration which enhances the attractiveness of this location is the access to a large number of skilled workers. Importantly, the access to prospective employees of logistic centres is greater here than in other nearby locations which are important from the point of view of conducting logistic operations (e.g. in Poznań).

Goodman has been present in this market for a few years. Mila S.A., which runs in Poland a chain of over 180 grocery supermarkets, has its nationwide distribution centre of 39,700 m2 in our park in Konin.

Maciej Madejak Head of Business Development for Poland Goodman Poland Sp. z o.o.

The population of Konin is characterized by its low entrepreneurship – with the enduring local tradition of working in large industrial companies and the development of industry the inhabitants are more willing to seek employment in such companies than to start up their own businesses. The average remuneration in Konin is similar to that recorded in the Wielkopolskie Voivodeship.

A relatively high unemployment rate is still noted in Konin, particularly so in comparison with other towns in Wielkopolska. This situation is at the same time favourable to potential employers, who are thus able to recruit numerous employees.

Konin is developing in particular in the area of logistics, energy sector, and modern industry. Factors conducive to that include the convenient location and support of the city authorities, which make efforts to create the best possible conditions for the development in these areas – both by supporting businesses and by improving competences of employees who are already on the labour market.

Joanna Brzuszkiewicz Branch Manager

Randstad Perm Unit Western Poland

20

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21 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Location > Legnica is the third biggest city in the Dolnośląskie voivodeship, situated in the central part of the Lower Dolnośląskie voivodeship.

> The city economy is based on metallurgy. Although there is no mine in the town itself, given the location in the Legnicko-Glogowski Copper Area and in a copper basin, also copper industry is well-developed and KGHM Zanam, a manufacturer of mining machines, is among the major employers.

> The subzones of the Legnicka and Wałbrzyska Special Economic Zones operate in the region. Lands for development located in Legnica are part of the Legnicka Special Economic Zone, which at the end of 2015 provided about 12,600 jobs. The area of the zone is over 1,760 ha, of which developed lands account for about 321 ha.

> Bolesławiec is a county town situated at a junction of major communication routes.

> Economic subzones within the Special Economic Zone for Small Enterprises operate in the area of Bolesławiec.

> Major companies in the town and its surroundings include: Toyota Boshoku Corporation, Favorite Gifts, SRG, Zakłady Chemiczne Wizów, Gerresheimer Bolesławiec S.A., Zakłady Ceramiczne Bolesławiec Sp. z o.o., Bader Sp. z o.o., Zehnder, HOERBIGER Automotive Sp. z o.o., Guardian Automotive Polska Sp. z o.o., Hoormann Legnica Sp. z o.o., Plasticos Durex Sp. z o.o.

Infrastructure > Legnica is directly communicated with Wrocław by the A4 motorway.

Source: Colliers International

532

584364

71

93

725

671

Legnica-

Bolesławiec

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM LEGNICA (km)

Legnica/BolesławiecHUMAN RESOURCES

Population at working age

POPULATION - LEGNICA 100,886

Population at mobile age*

62.4%38.6%

COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES

100%

Population at working age

POPULATION - BOLESŁAWIEC COUNTY 90,199

Population at mobile age*

63.3%39%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

100%

UNEMPLOYMENT RATE

AVERAGE GROSS MONTHLY SALARY

107 (LEGNICA)

59 (BOLESŁAWIEC COUNTY)

pow. boleslawiecki

5.9%

BOLESŁAWIEC COUNTY (2016)

Legnica

6.4%

LEGNICA (2016)

3,548.69 PLNBOLESŁAWIEC COUNTY (2016)

3,582.11 PLNLEGNICA (2016)

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

KGHM ZANAM S.A. Mining machines manufacturing 1,500

SITECH SP. Z O.O. Automotive parts manufacturing 1,100

WINKELMANN Automotive parts manufacturing 1,100

INFRASTRUCTURE IN REGION

Cargo airport: n/a

Cargo railway station: 1 km

Page 22: €¦ · we aim this publication. Introducing new potential locations for logistic centres in Poland is one of the main reasons behind this report. In this publication, we pay special

> Currently the S3 major road is being built between Legnica and Zielona Góra. After its completion in 2018, there will be a full major road connection between Legnica and Szczecin.

> The railway station in Legnica is one of the major ones in the Dolnośląskie voivodeship for both regional and long-distance (including international) connections. The E30 railway line, which is an element of the third European communication corridor, goes through Bolesławiec. The nearest airport with a cargo terminal is located in Wrocław, communicated by the A4 motorway.

> The town is situated directly at the A4 motorway and the A18 motorway which is currently under reconstruction. Its further extension is conditional on the obtaining of an environmental decision to continue the construction works.

Real estate market > In the region between Legnica and Bolesławiec there are 4 modern warehouse facilities with a total area of 66,100 m2 . The largest is a BTS project built in 2013 for Lear totaling 32,300 m2.

> BTS projects located nearby attest to the attractiveness of the locations between Legnica and Boleslawiec, including warehouses developed by Panattoni for Case Tech (manufacturing sector) in Legnica (8,200 m2) and Faurecia in Legnickie Pole (in total 25,600 m2 in 2 facilities).

Labour market > Umeployment rate in Legnica is considerably lower than in adjacent counties (e.g. Jaworski 16.7%, Górowski 18.9%). This is mainly due to a considerable interest in this region generated among enteprises by the dynamically operating Legnicka Econominc Zone, good location and well prepared infrastructure. Numerous companies active in the zone mean access to skilled labour. Within a relatively short distance, labour force is available from Jawor or Złotoryja. Salaries are slightly over the national minimum but significantly lower (by about 15%) than in Wrocław. Legnica offers education in 7 vocational schools, 16 technical secondary schools and 18 general secondary schools. Legnica is also home to a few branch establishments of higher education institutions with degree courses in technology, including the branch of the Wrocław Technical University and the Management and IT Department of the State Higher Vocational School.

> Bolesławiec is also characterised by a relatively lower unemployment rate, which results from its convenient location and the consequent major interest from investors. Like Legnica, Bolesławiec has a rich educational offer with 13 technical secondary schools, 7 vocational schools and 12 general secondary schools. Moreover, Bolesławiec has a few branch establishments of higher education institutions, including of the AGH Science and Technology University in Kraków and of the Economic University. The Higher School of Business and the Higher School of Business and Management operate in Bolesławiec as branch establishments too.

22 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

S3 S5

S822WROCŁAW

A8A4LEGNICA

BOLESŁAWIEC

Warszawa

Katowice

Łódź

Kraków

79

255 333

300431

Wrocław

LegnicaBolesławiec

CITIZENS OF UKRAINE AND BELARUS – DOLNOŚLĄSKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 970 2,380 9,602

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 36,112 72,042 132,267

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 26 28 75

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 107 192 1,017

Regulations applying to work permits and statements described on page 40.

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM LEGNICA (km)

DOLNOŚLĄSKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Legnica is not a new market on the industrial use space map of Poland. Given its location close to the German border, it has been developing for years as a logistic base for companies which distribute goods to the market of our western neighbours. The infrastructural advantage is, obviously, the location in the vicinity of the A4 motorway, which connects the major agglomerations in southern and south-western Poland with Germany.

It can be assumed that this market will continue to be attractive to a certain group of clients and will maintain a stable development rate.

Maciej Madejak Head of Business Development for Poland Goodman Poland Sp. z o.o.

Legnica and Bolesławiec are strategically located between the capital of the Dolnośląskie voivodeship and the German border with the border crossing in Zgorzelec. A factor of immense significance, apart from the location itself, is the access to the A4 motorway, constituting the principal route connecting southern Poland, including its strategic industrial areas of the Górnośląskie and Dolnośląskie voivodeships, with western Europe. That is why this region was among the first which attracted the interest of investment capital from the West. This led to rapid development of the investment areas within the Legnicka Special Economic Zone.

Bolesławiec is home to production plants of such companies as SRG Global, Hoerbiger, and it hosts the logistic centre of Rhenus Logistics. Legnica, in turn, has many companies from the automotive cluster, including. Winkelmann, LEAR Corporation, Gates, Faurecia and Voss, as well as logistic firms such as Raben Logistics.

In spite of its already high degree of development, the region continues to attract considerable interest from investors and has the potential needed to respond to this interest. The Legnicka Special Economic Zone offers investment lands which are still available. Their total area in the region, including such locations as Okmiany, Chojnice and Legnica, is over 200 hectares. Investors can also seek lands in the private market. That is all the more the case given that there are approved and valid local zoning and land development plans for most areas in the Bolesławiecki country and for the most part of the lands situated at the A4 motorway and in the surroundings of Legnica. Those lands, unless the local zoning and land development plan requires them to be used for agricultural purposes, are not subject to sale constraints resulting from the Act on the Structuring of the Agrarian System.

The major challenge faced by the region is access to skilled workers, which is the key factor for investors, especially those from the manufacturing sector, but increasingly often also for logistic companies.

Łukasz Pańczyk Senior Associate

Colliers International Poland Sp. z o.o

23

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24

Experts

Arkadiusz Więckiewicz Regional Manager

Randstad Staffing South - Western Poland

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Legnica is situated at the heart of the Dolnośląskie voivodeship, at a junction of major communication routes – the A4 motorway leading from western Europe to Ukraine and the national road no. 3 (planned major road S3) from the south of the continent to the Baltic Sea and to Scandinavia.

The city is situated in a straight-line distance of 75 km from Wrocław, 170 km from Dresden and Prague, 200 km from Berlin. The key strengths of Legnica are: its economic potential, good infrastructure, skilled labour force, young and educated population, incentives for investors, as well as high capital expenditures with the co-funding from the EU and the Legnicka Special Economic Zone. At present, approximately 20 companies with international capital operate in the Legnicka subzone, employing over 4,000 people. The greatest number of jobs is provided by: Winkelmann, Viessmann Technika Grzewcza Sp. z o.o., Tbmeca Poland Sp. z o.o., C+P Sp. z o.o., Case Tech Sp. z o.o., Haerter Sp. z o.o., Gates Sp. z o.o., Wezi-Tec Sp. z o.o., Faurecia Sp. z o.o., Brugman Fabryka Grzejników Sp. z o.o. Moreover, it is still possible to buy attractive investment lands in the region and the business climate is favourable to investors. The lower living costs are also lower in Legnica – both food and housing prices are more affordable than in larger cities (Wrocław, Jelenia Góra).

Bolesławiec has many attributes which make it attractive to investors: convenient geographical location, proximity to natural resources, diversified industry with a tradition of pottery manufacturing, well-developed technical, social and economic infrastructure. It makes efforts to create an investment climate friendly to entrepreneurs, by offering a system of tax exemptions and investment lands situated in the northern part of the town on the area of the INVEST-PARK subzone of the Wałbrzyska Special Economic Zone. Moreover, in the vicinity of Bolesławiec there are several economic subzones included in the Special Economic Zone of Small-Sized Enterprises: the closest are the Nowogrodziec-Wykroty subzone and Krzywa subzone, which is part of the Legnicka Special Economic Zone. The principal advantage of Bolesławiec is its location. Additionally, with the relatively low unemployment rate the salaries are among the lowest in in the Dolnośląskie voivodeship.

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LublinLocation > Lublin is the largest city in the Lubelskie voivodeship, situated in south-eastern Poland at a route connecting Warsaw with Lviv.

> The city’s economy relies above all on machinery and automotive industries. Daewon Europe, a car parts manufacturer, operating on the premises of a former Daewoo plant, is one of the companies based in Lublin. In turn, Świdnik is home to Państwowe Zakłady Lotnicze (State Aviation Works) with about 3,500 employees.

> Investment lands in the Lublin region are part of the EURO-PARK MIELEC Special Economic Zone, which at the end of 2015 offered over 22,000 jobs. The area of the zone is approximately 1,495 ha, of which developed lands account for over 1,000 ha.

Infrastructure > Lublin is situated in the proximity of major communication routes leading to the east and west of Europe, including the S17 major road (Warsaw – Lviv).

> The Warsaw – Lviv railway line crosses Lublin. The city has direct railway connections with most of major cities in Poland. The Lublin railway hub is among the business in the entire voivodeship.

> Lublin Airport is located 10 km from the city centre.

> The northern ring road of Lublin, which is part of S12, S17 and S1 major roads currently under construction, runs directly at the airport.

> Świdnik is situated at S12 and S17 roads, whose extension towards the German and Ukrainian borders is conditional on the issuing of an environmental decision to enable the start of construction works.

25 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

INFRASTRUCTURE IN REGION

Cargo airport: 14 km

Cargo railway station: 6 km

Source: Colliers International

420

102

336

409

635

395

123

Lublin

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM LUBLIN (km)

UNEMPLOYMENT RATE (2016)

Lublin

7.2%

HUMAN RESOURCES

Population at working age

POPULATION 340,727

Population at mobile age*

61.6%39.4%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

330

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

4,060.17 PLN

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

PZL-ŚWIDNIK Aviation machines manufacturing 3,500

PGE DYSTRYBUCJA S.A. ODDZIAŁ LUBLIN

Power generation and distribution 1,250

LUBELLA Food products manufacturing 395

Source: Colliers International

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Real estate market > In Lublin there are 5 modern warehouse facilities with the total area of approximately 107,000 m2. The largest one are Goodman Lublin Logistics Centre, built in the BTS formula, delivered to the market in 2015 with an area of 33,300 m2, and Mełgiewska III Logistics Centre with the total area of 28,000 m2.

> Currently the first stage of MLP Lublin B, with an area of approximately 6,400 m2 remains under construction.

> About 25 km from Lublin, another logistics centre, with an area of approximately 24,300 m2, is planned to be built in Zagrody, in the municipality of Garbów. Currently search for an investor is under way.

Labour market > Lublin and its Metropolitan Area are attractive business locations, increasingly often appreciated by investors. Wide availability of working-age job candidates (approximately 60% of the population) and a high percentage of almost 25% of inhabitants aged under 25 contribute to Lublin’s appeal. Additionally, its geographical location opens up the region to labour force incoming from the east and attracts companies from across Polish eastern border. Lublin is an attractive destination for investors in terms of not only its labour force availability but also employment costs, which are much lower than elsewhere in Poland when measured by the ratio of candidate quality to employer costs.

26 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

19

S17

A2

LUBLIN

ŚWIDNIK2140

WarszawaŁódź

Rzeszów

Kielce

174

184

177

287Lublin

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – LUBELSKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 870 1,053 1,668

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 25,469 54,982 72,652

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 345 472 951

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 453 628 1,747

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM LUBLIN (km)

LUBELSKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Economic Zone in Lublin started in October 2013 with 70 employees. That the decision to locate the plant in Lublin was right is best confirmed by yet another investment, which is now about to be completed, aimed at expanding the plant and doubling its production capacity. Today, 220 people work at ABM and the number is growing month by month.

From the perspective of the ABM group, the advantages of Lublin stem from the fact that it is a large city with a population of 350,000 and a culture similar to that of Bavaria; it is an academic centre with 9 tertiary education establishments, including the Technical University of Lublin, 90,000 students and 16,000 graduates every year; it offers highly skilled labour force with technical qualifications and a very good ratio of the skill level to expected remuneration; labour force is available here and the city is continuously improving its road, airway and railway infrastructure.

Robert Bronisz Plant Director ABM Greiffenberger Polska Sp. z o.o.

The construction of a logistic park in the vicinity of Lublin, which started nearly three years ago, was our pioneer project intended to answer the question about the real demand for warehouse facilities in this region. We managed to attract major tenants for the MLP Lublin park: ABM Greiffenberger Poland and Stokrotka. As of now, we assess the demand for warehouse space in this region as moderate. However, we are convinced that eastern Poland has a great potential for expansion and will see an investment boom. In the case of our MLP Lublin logistic park its location on the area of the Special Economic Zone was also of major importance. Companies willing to invest in this region may expect to benefit from real estate tax exemptions as well as corporate income tax exemptions. MLP Lublin is developed on a plot with an area of 10 hectares to be used as industrial space and for light production. The target total leasable area will amount to approx. 50,000 m2. The total surface of the facilities built on the area of the park is almost 16,000 m2. Currently, 6,400 m2 remain under construction.

Radosław T. Krochta President of the Management Board

MLP Group S.A.

27

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Clients seeking industrial space are increasingly more inclined to consider the eastern part of Poland, including Lublin. For the future development of the warehouse market in this region of the country it will be necessary to extend its road infrastructure and to connect Warsaw with Lublin by a fast road all along the way between the two cities. That will give Lublin a connection to international transport routes, which in turn will enable reductions in transport costs as well as shorter order fulfilment time.

Besides infrastructural issues, an essential element which today hinders the development of this market is linked to the existing possibilities for expansion in the traditional warehouse locations in Poland. The major locations in central, southern, northers and western Poland still have potential for development and continue to attract clients. However, Goodman is present in Lublin already now – we have built there and we manage for the Stock Spirits Group a warehouse with a surface of 33,400 m2. Additionally, we are able to extend this location by further 17,000 m2.

Maciej Madejak Head of Business Development for Poland Goodman Poland Sp. z o.o.

What makes Lublin appealing is, among others, the efficiently operating economic zone, which attracts foreign companies, while the developing airport and road infrastructure ensures convenient transport in the region. Lublin is an attractive location for investors in terms of the availability and quality of job candidates as well as considerably lower labour costs than in other locations in Poland. The developing city and new business projects attract young job candidates, who are anyway plentiful in the academic centre (9 tertiary education establishments). The continuous development of human resources is also supported by various types of life-long learning and skills improvement schemes.

Agnieszka Braunberger Branch Manager

Randstad Staffing Lublin and Podkarpacie Region

28

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29 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

RadomLocation > In terms of population Radom is the second town in the Mazowieckie voivodeship, situated in south eastern Poland at a road connecting Warsaw and Kraków (S7).

> The city’s economy is based on metal industry. Several companies from the machinery and metallurgy sectors operate here, including Durpol, a supplier of production lines for the automotive sector. Manufacturer of parts for the precise industry – Toho, which manufactures metal elements for the automotive sector, exported to European plants, also operates in Radom.

> The investment lands situated in the vicinity of Radom are part of the EURO-PARK WISŁOSAN Tarnobrzeska Special Economic Zone, which at the end of 2015 offered 25,270 jobs. The area of the zone is approximately 1,743 ha, of which developed lands account for about 1,269 ha.

Infrastructure > Radom is situated at the E77/S7 road (currently under reconstruction to be upgraded to a expressway standard) connecting the north and south of the country.

> The Kraków – Warsaw railway line crosses Radom. The railway infrastructure also enables the servicing of the Radom – Sadków airport, which has its own siding.

> The nearest airport with a cargo terminal is located in Warsaw, and the connection with it is provided by the S7 expressway.

> The eastern ring road surrounding Radom runs directly near the airport (European road E371).

INFRASTRUCTURE IN REGION

Cargo airport: n/a

Cargo railway station: 1 km

Source: Colliers International

401

214

291

309

517

406

220

Radom

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM RADOM (km)

UNEMPLOYMENT RATE (2016)

Radom

16.2%

HUMAN RESOURCES

Population at working age

POPULATION 216,159

Population at mobile age*

61.90%38.6%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

ELEKTROWNIA KOZIENICE Power generation 5,000

IMPERIAL TOBACCO POLSKA MANUFACTURING S.A.

Tobacco products manufacturing 800

PHU POLSKI TYTOŃ S.A. Tobacco products manufacturing 600

185

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

3,742.89 PLN

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Real estate market > Radom does not offer modern warehouse facilities for lease yet, and developers have not decided to start construction on the Radom market.

> Radom is 100 km away from Warsaw to the north and 130 km away from Łódź to the west. These cities are among major warehouse markets, totaling about 40% of the total modern industrial space in Poland.

> Selected companies operating in Radom include Fabryka Broni Łucznik, Zbyszko (a beverage producer) in the north and Imperial Tobacco Poland (a tobacco manufacturer) in the south.

Labour market > Salaries, which are lower than in other bigger towns or regions of Poland, as well as a relatively low percentage of large enterprises on the local market continue to be the advantage for employers in Radom.

30 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

8S7

S17

S8

S7

WARSZAWA

A2A2A2

RADOM 40

Warszawa

Łódź

Kraków

Lublin

192

135 100

112Radom

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – MAZOWIECKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 13,871 23,789 37,440

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 194,971 306,708 350,186

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 1,062 1,011 2,447

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 2,293 2,583 8,754

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM RADOM (km)

MAZOWIECKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

In 2013, FIFOR POLSKA Sp. z o.o. decided to open its salty snack manufacturing plant in Radom in the subzone of the Tarnobrzeg Special Economic Zone. The manufacturing plant with a roofed surface of almost 15,500 m² currently employs 245 people. A number of factors determined the location of the manufacturing plant in Radom, however, the main ones were the availability of personnel and efficient support activities on the part of the city authorities. Thanks to cooperation with the Department for Services to the Radom Economic Zone at the City Hall, the entire process from the decision to locate the operations in Radom all the way to the actual start of production went very quickly and smoothly.

Epaminontas Mitzalis General Director

Fifor Polska Sp. z o.o.

Radom is an excellent place for investments not only because of its central location, very good transport infrastructure and short distance from Warsaw. The principal advantage of Radom is at present the availability of labour force ready to take up work in manufacturing plants with various profiles of operations. We record wide availability of job candidates with skills profiles required for the positions of warehouse workers, forklift operators, machine operators. Given that numerous companies in the Radom market are seeking personnel for precise work in metalworking, e.g. CNC operators, machinist millers and turners, we note that more and more young or unemployed people are learning to gain those skills and various occupational education schemes, like a dual education system, which are available in Radom enable this development. The unemployment rate in Radom is among the highest in Poland. In my assessment, there is still labour market potential to unlock here. Apart from workers for manual labour jobs, tertiary education establishments ensure a pool of candidates for higher level positions by offering degrees in both humanities and science and technology.

Izabela Mikulska-Pysiak Branch Manager

Randstad Staffing Radom

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32 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

RzeszówLocation > Rzeszów is the capital of the podkarpackie voivodeship. The city is situated in south-eastern Poland at the Wrocław – Lviv route.

> The city’s economy relies primarily on the aviation and IT industries. The leading company in Rzeszów is PRATT & WHITNEY RZESZÓW S.A. (former WSK PZL-Rzeszów S.A.) – a manufacturer of aviation engines.

> EURO-PARK MIELEC and EURO PARK WISŁOSAN Tarnobrzeska Special Economic Zones operate in the region.

Infrastructure > Rzeszów is situated at a junction of major communication routes leading to the east and west of Europe (including the A4 motorway connecting Dresden with Kiev). There are also plans to build a major road S19, which will provide a complete major road connection between Rzeszów and Lublin, and further to Warsaw (the S17 road is planned to be handed over for use in 2019).

> Rzeszów is the biggest hub in the podkarpackie voivodeship and one of the major ones in south-eastern Poland. The city is directly communicated by railway with most of Polish largest cities as well as with Lviv. The Rzeszów Główny railway station is a B category railway hub (with up to 2 million travellers annually).

> Another railway line connecting Rzeszów with the Jasionka airport is planned to be built by 2023.

> The Rzeszów-Jasionka airport with a cargo terminal is situated 12 km from the city centre.

INFRASTRUCTURE IN REGION

Cargo airport: 11 km

Cargo railway station: 1 km

Source: Colliers International

56558

1

315

582

92

91

267

Rzeszów

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM RZESZÓW (km)

UNEMPLOYMENT RATE (2016)

Rzeszow

6.8%

HUMAN RESOURCES

Population at working age

POPULATION 185,896

Population at mobile age*

63.30%42.1%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

DĘBICA OPONY Tire manufacturing 2,900

POLSKIE ZAKŁADY LOTNICZE Aviation parts manufacturing 2,230

BSH (F.ZELMER S.A) White goods manufacturing 920

211

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

4,231.81 PLN

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Real estate market > There are 2 modern warehouse facilities In Rzeszów, with a total area of about 46,000 m2.

> Waimea Cargo Terminal Rzeszów-Jasionka, with an area of about 5,000 m2, situated 13 km from Rzeszów, is under construction with the completion date set for June 2017.

> Logicor Rzeszów warehouse, with an area of 32,608 m2 is located 11 km from the city.

Labour market > Rzeszów is among the European leaders in terms of the number of students. According to Eurostat data, there are as man y as 353 students in 1,000 inhabitants. The Rzeszów Technical University and the University of Rzeszów open degree studies at the so-called requested faculties to meet the needs of the developing business. Additionally, both Rzeszów and its surrounding Special Economic Zone have numerous high-class specialists from the aviation, IT, automotive and plastics industries.

33 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

19

RZESZÓW A4

23

Warszawa

Katowice

Kraków

246

297

168 Rzeszów

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – PODKARPACKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 569 829 1,623

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 7,741 10,006 10,897

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 3 2 15

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 4 18 139

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers within 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM RZESZÓW (km)

PODKARPACKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

The main criteria which guided us in selecting the location included low costs of development and production as well as the availability of qualified and experienced specialists. We found all that here – in the Polish Aviation Valley in the Special Economic Zone.

Moreover, Rzeszów as a region has attractive infrastructure and good inter-regional communication connections; it also offers interesting financial support. Regional and national authorities proved to be very helpful in the implementation of our plans and contributed to turning our intentions fully into reality.

MTU Aero Engines Poland in Rzeszów recorded a very fast development and is one of the major plants within the MTU Aero Engines group, the leader and the only independent company in the market of airplane engine manufacturing in Germany. The expected market development and confirmed involvement of MTU in projects secure a solid growth of the company; the branch in Poland will surely participate accordingly in that growth.

Klaus Müller Business Development Director

MTU Aero Engines

The considerations which prompted the company to launch its operations in Rzeszów include above all the availability of qualified engineers and the possibility of cooperation with universities and other tertiary education establishments. What mattered enormously to us in the process of selecting the place for the investment was the possibility to locate it in a special economic zone and to obtain support and aid from the local authorities. Moreover, the advantages of the region include the proximity of an airport and frequent, convenient flights to Warsaw, Frankfurt or Munich, as well as the motorway, which will shorten the driving time to Berlin to 8 hours. Besides, Rzeszów is also a very good place to live.Wojciech Chciuk

Plant Director

BorgWarner Morse TEC

Rzeszów is the capital of the Subcarpathian voivodeship and the largest city in south-eastern Poland. Rzeszów is very well communicated thanks to the A-4 motorway, which ensures a convenient connection between eastern Europe and Ukraine. Also national roads no. 9 and 19 provide access to central and eastern European countries.

E-30 railway line, a railway route of major economic importance, also crosses Rzeszów. The international airport “RZESZÓW - JASIONKA” with direct flights to numerous European cities is another significant factor.

Furthermore, Rzeszów is a leader in Europe in terms of the number of student: according to Eurostat, the city has as many as 353 students in 1,000 inhabitants. Rzeszów Technical University or the University of Rzeszów open degree studies at the so-called requested faculties to meet the needs of the developing business.

Additionally, both Rzeszów and its surrounding Special Economic Zone have numerous high-class specialists from the aviation, IT, automotive and plastics industries. For a few years now Rzeszów has been attracting an ever increasing number of investors operating in the sector of modern services for business such accounting, audits and data base management.

Moreover, the Subcarpathia has its dynamically operating Aviation Valley with over 90% of the Polish aviation industry concentrated there, which attracts both new investors and highly skilled labour force.

Małgorzata Konopka Key Account Manager

Randstad Professionals Rzeszów

34

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35 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Zielona GóraLocation > Zielona Góra is situated in the southern part of the lubuskie voivodeship in western Poland.

> The city economy is based primarily on the wood and IT industries. Zielona Góra is home to Stelmet S.A – one of the largest manufacturers of garden equipment (fences, furniture, etc.).

> The Kostrzyńsko-Słubicka Special Economic Zone operates in Zielona Góra. The area of the zone is 1,868 ha, of which developed lands account for 1,028 ha. At the end of 2015, the zone provided 30,907 jobs.

Infrastructure > Zielona Góra is situated at the S3 road, which is part of the international road E65. Once the S3 extension between Zielona Góra and Sulechów is completed, the city will be fully communicated by a express road to Szczecin.

> The Oder Railway Route, which runs from Wrocław to Szczecin and is part of the CE 59 international transport route, crosses Zielona Góra.

> A large inland port on the Oder river is situated in Cigacice, about 10 km from the city centre. It has cargo handling functions and is the “Polish gate“ to the system of inland canals in Germany, to which it is connected by the Oder-Havel canal.

> The passenger and Cargo airport in Babimost is located 33 km from the city centre.

INFRASTRUCTURE IN REGION

Cargo airport: 33 km

Cargo railway station: 1 km

Source: Colliers International

533

702480

151

749

695

Zielona Góra

70

Russia

Slovakia

Belarus

Lithuania

Czech Republic

Germany

Ukraine

DISTANCE TO POLISH BORDERS FROM ZIELONA GÓRA (km)

UNEMPLOYMENT RATE (2016)

Zielona gora

4.7%

HUMAN RESOURCES

Population at working age

POPULATION 138,711

Population at mobile age*

61.7%39.3%

*people capable of changing a job title, work place or reskilling at the age of 18-44 (CSO: Population at working age involving population at the age of 18-44).

Source: Colliers International

SELECTED COMPANIES

COMPANY SECTOR EST. NUMBER OF EMPLOYEES

STELMET S.A. Wooden materials manufacturing 1,155

EXALO DRILLING S.A. CENTRUM ZIELONA GÓRA

Drilling works 700

LUG S.A Lighting systems manufacturing 500

147

COMPANIES EMPLOYING BETWEEN 50 AND 250

EMPLOYEES

100%

AVERAGE GROSS MONTHLY SALARY

3,731.67 PLN

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Real estate market > In the region there are 2 modern industrial facilities with a total area of about 21,500 m2 – Logicor Świebodzin and BTS for Syncreon in Żary. Currently in Zielona Góra a warehouse with an area of about 19,600 m2 is being built in the BTS formula for Ideal Automotive by Panattoni.

> 7R Logistics is planning to build a 100,000 m² warehouse in Sulechów, at the S3 major road, 20 km from Zielona Góra.

> A two-stage warehouse development, PPH POSTĘP S.A, with a total area of approximately 7,400 m2, is planned in Świebodzin, 44 km from Zielona Góra.

Labour market > The unemployment rate in Zielona Góra district amounts to 8.4% and 4.7% (3,000 people) in Zielona Góra itself. People with postsecondary, medium vocational and basic vocational education make the most of the group of unemployed people. That provides promising foundation for companies seeking for lower tier employees. The demand for employees in manufacturing sector is mostly noticed at the positions of machine and devices operator, storeman, automation specialist, electromechanical engineer and IT specialists.

36 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

S3

S3

A2

ZIELONAGÓRA 17

Warszawa

Katowice Kraków

ZielonaGóra

168

297

246

Regulations applying to work permits and statements described on page 40.

CITIZENS OF UKRAINE AND BELARUS – LUBUSKIE LABOUR MARKET UKRAINIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 1,238 2,321 3,167

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 10,706 33,421 65,741

BELARUSIANS 2014 2015 2016

THE NUMBER OF ISSUED WORK PERMITS 16 15 40

THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 81 214 750

Source: Randstad Polska

Expressways

Local roads

Source: Colliers International / Randstad Polska

Number of the largest employers wwwwwithin 30 km from city centre

DISTANCE TO SELECTED POLISH CITIES FROM ZIELONA GÓRA (km)

LUBUSKIE VOIVODESHIP

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Experts

New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

HUT Technika Środowiska sp. z o.o. has been operating in Zielona Góra since 1996.

Our innovative products are addressed to the sector of solid waste utilization and recycling. Since 2001 this market has been developing very dynamically in Poland.

The principal criterion for me in selecting the location was its proximity to Germany and the support from the local authorities. By including the investment areas into the Special Economic Zone, Zielona Góra offers very favourable conditions for operating here, tax reliefs as well as access to skilled labour force. Considering the above, Zielona Góra fully met our expectations, and our operations continue to develop. A testament to this is our new investment project, currently under way, consisting in an extension of our technologies and production.

Dipl.-Ing. Steffen Rölig President

HUT Technika Środowiska Sp. z o.o.

Zielona Góra has been the most dynamically developing city in the Lubuskie Voivodeship recently. New investments in the Lubuskie Industrial and Technology Park in Nowy Kisielin meant the total of 6 investors and over 1000 new jobs until the end of 2017. The city offers further investment area of nearly 100 hectares. 35% of the existing employers plan to increase employment this year. Some of them also intend to expand their existing manufacturing plants.

The arrival of new investors in the region did not have any significant impact on the level of remuneration offered on the market: in the case of unskilled workers wages remain close to the minimum remuneration level. However, the proximity of the western boarder makes it easier for inhabitants of Zielona Góra and its surroundings to take up work on the territory of Germany. This applies both to seasonal jobs in the summer and to regular employment. The wages offered in Germany are much more attractive, which adversely affects the number of job candidates willing to work on the Polish side of the broader. That is why almost 36% companies in the western part of Poland plan to increase wages in the next six months in order to better recruit new employees and retain the existing ones.

Anna Loc Senior Branch Manager

Randstad Staffing Gorzów Wielkopolski

37

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38 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

For a few years now the Polish labour market has been transforming into the employee market. Recruiting personnel is becoming an increasing challenge for employers. Surveys conducted by the Randstad Research Institute indicate that one in three companies plan to increase their employment in the upcoming six months. As a result of the continuously growing demand for manual labour companies find it hard to recruit large groups of workers in popular locations, which have for a long time remained of interest for investors.

This is particularly visible in the vicinity of large cities, which attracted sustained interest of companies locating their plants in Poland. The unemployment rate in such cities as Poznań, Wrocław, Warszawa or Katowice dropped below 3%, which in practice means that there are no people who are out of work and seeking employment. In this situation companies look for labour force in neighbouring counties and voivodeships, with the free daily transport ensured by the employer becoming a standard. The employment of foreigners (mainly from Ukraine) has become a necessity in those regions. Almost 1.5 million workers from across the eastern border working now on the territory of our country is the best confirmation of the trend. It should be remembered, however, that the solution entails additional costs for the employer, linked to ensuring free accommodation for those people.

That is why new companies seeking optimal locations for their operations in Poland are more willing to consider

smaller towns, which until now did not enjoy much interest from investors. The undeniable advantage of such locations is a considerable of working age population, which provides a solid base of potential workers with a relatively high unemployment rate and limited competition from other market players. A lower level of salaries is yet another factor in favour of opting for smaller towns.

Increasing competitiveness has been recorded in the Polish labour market for a few years. Recruiting valuable job candidates requires more involvement from the employers and generates higher costs. As a result, companies, aware of the significant costs incurred on employee recruitment and training, increasingly focus on activities aimed at retention and appropriate motivation of highly skilled employees.

In the case of lower level manual workers, their retention in the company depends to a large extent on the remuneration offered by the employer. According to the results of the Polish edition of Randstad Employer Brand Research, as much as 64% respondents in this group mention the salary and employee benefits as the factor determining their choice of the employer. Considering that it is the group with the lowest wages, often close to the minimum salary, it is no wonder that those people are ready to change the employer in order to improve their financial situation. The employee market and the numerous job offers available in smaller towns are only conducive to such attitudes.

Labour Market in Poland

Production worker/machine operator

(unskilled)

Production worker/experienced machine

operator skilled)

Warehouseman without enitlements

Warehouseman with enitlements Packer / confectioner Foreman

min

imal

mos

t ofte

n

max

imal

min

imal

mos

t ofte

n

max

imal

min

imal

mos

t ofte

n

max

imal

min

imal

mos

t ofte

n

max

imal

min

imal

mos

t ofte

n

max

imal

min

imal

mos

t ofte

n

max

imal

Białystok 12 12 13 12 13 14 12.5 12.5 12.5 13 13 14 12 12 13 15 18 25

Częstochowa 12 13 14 12 13 15 12 12.5 13 12 15 18 12 13 13 17 25 33

Kielce 13 15 18 15 18 25 14 16 20 14 16 20 13 16 18 18 25 32

Konin 12 15 17 15 18 20 12 13 15 17 18 23 12 15 17 23 24 36

Legnica 12.5 13.5 14.5 13 14.5 15.5 13 14 15.5 14.5 15.5 17 12.5 13.5 15 19.5 25 31

Bolesławiec 12.5 13.5 14.5 13 14.5 15.5 13 14 15.5 14.5 15.5 17 12.5 13.5 15 18 24 30

Lublin 12 13 15 13 14 16 12 13 15 13 15 20 12 13 15 18 28 35

Radom 12 14 14 12 15 15 12 13 15 12 14 17 12 12 14 18 26 35

Rzeszów 12 13 15 13 14 16 12 13 15 13 15 20 12 13 15 18 28 35

Zielona Góra 12 13 15 17 21 26 12 13 15 15 18 19 12 15 18 21 25 36

Blue collar salaries (gross stake for the working hour PLN)

Source: Randstad Polska

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39 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

White collar – average monthly salaries (gross PLN)

Source: Randstad Polska

Logistic

Minimal Most often Maximal

Distribution Center Director 13,500 15,500 18,000

Logistics Director 12,000 14,000 16,000

Warehouse Manager 7,000 8,000 10,000

Transport Manager 7,000 8,500 10,500

Forwarding Manager 7,000 8,500 11,000

Shift Manager 5,000 6,000 7,500

Forwarder 4,000 5,000 6,500

Customs Specialist 5,000 6,000 6,500

Supply Chain Specialist 4,000 5,000 7,000

The situations is slightly different in the case of medium and senior level employees. For them also the salary remains an essential element in choosing a new employer, but it follows from our research that those people value more the opportunities of career development, attractive training system and work environment. For years, representatives of this group coming from smaller towns were forced to move out and work in bigger cities if they wanted to develop their careers. They declare, however, that is interesting professional challenges become available in the home towns, they would be inclined to return. This trend is becoming noticeable in the labour market. For those who are interested in smaller towns that means access not only to job candidates graduating from local universities as well as specialists and managers on the local market, but also to highly qualified experts with experience at the most valued employers and ready to relocate.

The table below presents the average salary for the 9 locations discussed in the report (population up to 350,000) for managerial and specialist jobs in manufacturing and logistics.

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40 New locations, new possibilities. Logistic centres vs. labour market | Poland | Colliers International

Work permit* Statement on the intention to entrust work to a foreigner**

Description

Document authorising a foreigner to take up work in Poland. The foreigner must have a visa or a temporary residence permit

in order to take up work.

A document issued to citizens of the Republic of Armenia, Republic of Belarus, Republic of Georgia, Republic of Moldova, Russian Federation, Ukraine authorising

the holder to take up work in any sector in a period of up to 6 months within consecutive 12 months. The statement may be used for work at a single stretch or for a few shorter periods. The foreigner must have a visa or a temporary residence

permit in order to take up work.

For whom Foreigners from outside the EU. Citizens of Armenia, Belarus, Georgia, Moldova, Russia, Ukraine.

Path to obtain

Application for work permit is submitted to the voivodeship governor

as appropriate geographically for the employer's registered office. The permit is an administrative decision.

The statement is registered in the county labour office as appropriate geographically for the employer's registered office.

Time needed to obtain a permit - 1 month (granting or refusal to grant a work permit) (2 months as a maximum) - particularly

complicated matters.

Time needed to obtain a statement - depends on the county labour office – e.g. in Warsaw, two visits are required – to submit the statement and to collect

it once it has been registered after 7-10 days.

Fee: PLN 50 - work offered for a period up to 3 months; PLN 100 - work offered for a period longer

than 3 months; PLN 200 - delegating a foreigner to Poland in order to

provide an export service.

Free of charge.

Validity period

Issued for a limited period, however, not longer than 3 years. The validity period of a work permit may vary from one voivodeship to another

(voivodeship governor may shorten, by way an order, the period for which

a work permit is granted).

Maximum 6 months during a 12-month period (if the time is exceeded, the work performed is deemed as illegal).

Renewal

The employer submits an application for renewal. The application should be submitted not later than 30 days

before the expiry of the previous work permit.

The statement cannot be prolonged beyond the period of 6 months. If the employer wants to benefit from the foreigner's work for longer than 6 months,

after 3 months of the foreigner's work the employer may apply for a work permit to be granted to the foreigner - the application is submitted

to the voivodeship governor.

Legal basis

Act of 20 April 2004 on Promoting Employment and on Labour Market

Institutions.

Ordinance of the Minister of Labour and Social Policy of 21 April 2015 on cases in which the entrusting of work to a foreigner on the territory of the Republic

of Poland is admissible without the requirement to obtain a work permit.

Ordinance of the Minister of Labour and Social Policy of 1 April 2015 on

issuing a work permit for a foreigner.

Act of 15 June 2012 on the Effects of Entrusting the Performance of Work to Foreigners Residing Illegally on the Territory of the Republic of Poland.

Act of 15 June 2012 on the Effects of Entrusting the Performance of Work to Foreigners Residing Illegally on the Territory of the Republic of Poland.

-

* Work Permit - an administrative decision issued on the employer’s request by the voivodeship governor as relevant for the employer’s registered office. The maximum period for which a permit can be granted is 3 years. A permit may be granted to a foreigner from outside the European Union.

** Statement on the intention to entrust work to a citizen of the Republic of Armenia, Republic of Belarus, Republic of Georgia, Republic of Moldova, Russian Federation, Ukraine - a document in the form of the employer’s statement - registered by the relevant Labour Office - entitling the employers to entrust work only to foreigners from strictly determined countries. Work can be performed for a maximum of 6 months in a 12-month period for one or more employers.

Documents authorising a foreigners (outside EU) to take up work in Poland

Source: Randstad Polska

Documents authorising a foreigners (outside EU) to take up work in Poland

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www.randstad.pl

challenging projects for market leaders

Paweł Kopeć INTERNATIONAL ACCOUNT & BID MANAGER [email protected] +48 605 216 184

Marzena Milinkiewicz DIRECTOR OPERATIONS (STAFFING) [email protected] +48 601 89 31 31

Randstad Polska is one of the largest personnel consulting and temporary staffing agencies on the Polish market. We are a part of Randstad Holding nv., that was founded in 1960 in the Netherlands. Since then we have expanded our operations to 39 countries, representing more than 90 percent of the global HR services market. Each day, we support companies seeking the best employees as well as help candidates find an attractive workplace. Teams of highly qualified consultants work in more than 140 offices all over Poland. We provide services to around 2,000 employers. We carry out 2,000 permanent placement projects annually and employ 26,000 people on a temporary basis every day.

Randstad is the winner of “Outsourcing Stars 2016” award in the HR/ Recruitment category. More about our offer at: www.randstad.pl

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42 New locations, new possibilities – logistic centres vs. labour market | Poland | Colliers International

Comprehensive investor support throughout Poland

locationsin Poland

140

consultantssupporting our clients

550temporary workersemployed every day

30 000

specialists recruitedper year

2 000employees serviced

by HR Solutions team

44 000candidates

in our database

930 000

clients

2 000 labour marketreports released

601Number

on Polish HR Forum

Shaping the world of work

Randstad Polska Sp. z o.o., Al. Jerozolimskie 134, 02-305 Warszawa www.randstad.pl

we help brands grow

Randstad Employer Brand Research

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Colliers International Pl. Piłsudskiego 300-078 Warsaw +48 22 331 78 00

Maciej ChmielewskiPartner, Industrial and Logistics Agency [email protected] +48 600 828 337

Tomasz KasperowiczPartner, Industrial and Logistics [email protected]+48 664 920 131

Dominika Jędrak Director, Research and Consultancy Services [email protected] +48 666 819 24

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CONTACT:

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