Raport Confidence Index 2024_english veriosn

LOGISTICS AND SUPPLY CHAIN CONFIDENCE INDEX 2024

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Vincent Malhaire Head of Contract Logistics for CEE CEVA Logistics

What are expectations for this year’s performance for the logistics sector in general in Poland ? How will this be in fluenced by expectation for the general economic environment ?

Expectations for the performance of the logistics sector in Poland for 2024 can be described as moderately optimistic. On the one hand, the Polish logistics services market maintains a strong position in Central Europe thanks to its strategic location, developed transportation infrastructure, highly skilled professionals, exceptional productivity and still good labour costs. According to CBRE's data, the total industrial and logistics space stock in Poland in the first quarter of 2024 exceeded 32.1 million sqm. and is 8% higher compared to last year. Poland remains one of the fastest growing countries in Europe in terms of industrial and logistics space. On the other hand, the logistics sector in Poland continues to be affected by the war in Ukraine and other global geopolitical events. This demonstrates the need to diversify supply sources and routes, which in

turn forces logistics companies to increase the flexibility of their supply chains to better meet changing market conditions. Still a major challenge for the industry is the rise in energy and fuel costs and inflation, which requires companies to manage operating costs more efficiently and seek innovative logistics solutions. What will support the development of the sector is the expected economic recovery. There are already the first positive signs. In its spring forecasts, the European Commission raised its GDP growth forecast for Poland in 2024 to 2.7%, and estimates 3.2% for 2025. The World Bank maintained its forecast for Poland's economic growth in 2024 at 2.6%. Continued infrastructure development and adaptation to changing market conditions will be key.

What, if any, changes in international supply chains have you observed in re cent years (nearshoring) and especially in the last 12 months – and which do you expect to see in the years ahead?

In recent years, we have seen significant changes in international supply chains, with the trend of nearshoring, or moving production closer to target markets, gaining importance. The experience of the Covid-19 pandemic and geopolitical tensions, like the war in Ukraine, have prompted companies to rethink their sourcing strategies. Moving production closer to markets reduces risks associated with political and economic instability. Nearshoring increases companies' flexibility and their ability to respond quickly to changing market conditions, and this allows them to better manage inventory and production in a dynamically changing business environment.

In this context, the importance of Central and Eastern Europe, including Poland, is bound to grow; their attractiveness to investors is determined by well-developed logistics infrastructure, favourable business conditions and strategic location. Of key importance for the future of supply chains will certainly be, and already is, an even greater drive to decarbonise transportation, especially in the context of further EU regulations. Further changes will be set by automation, robotisation and artificial intelligence. Their use is already revolutionising supply chains, and will further enhance their flexibility, speed and operational efficiency in the coming years. What needs to be highlighted is the company’s involvement in social responsibility, which is now a must for all the customers.