Many manufacturing companies from the USA and Asia are looking for ways to reduce their costs, improve their quality, and access new markets. One of the strategies they are considering is insourcing back in Europe, or bringing some of their production activities closer to their customers and suppliers in the European Union.
But where should they locate their European operations? One of the most attractive options is Romania, a country that offers many advantages for manufacturing businesses. Here are some of the reasons why Romania is a great entry point for EU manufacturing:
Low labor costs
Romania has one of the lowest average
wages in the EU, at around 800 euros per month. This means that labor-intensive
industries can benefit from significant savings on their payroll expenses,
while still maintaining high standards of quality and productivity.
Skilled workforce
Romania has a well-educated and
talented workforce, with a high percentage of young people who speak English
and other foreign languages. The country also has a strong tradition of
engineering and technical education, producing graduates who are proficient in
various fields of manufacturing, such as automotive, electronics, aerospace,
textiles, and more.
Strategic location
Romania is situated in the heart of Europe, with easy access to both Western and Eastern markets. The country has a modern and extensive network of roads, railways, ports, and airports, connecting it to major cities and hubs in the region. Romania is also a member of the EU and NATO, which means that it enjoys free trade and movement of goods and people within the bloc, as well as political stability and security.
Favorable business environment
Romania offers a favorable
business environment for foreign investors, with low taxes, incentives, and
regulations. The corporate income tax rate is only 16%, one of the lowest in
the EU. The government also provides various incentives for investors who
create jobs, invest in research and development, or operate in special economic
zones. Moreover, Romania has a simple and transparent legal system, based on
the EU acquis communautaire, which ensures the protection of property rights
and contracts.
Cultural compatibility
Romania shares many cultural values and norms with other European countries, making it easy for foreign companies to integrate and operate in the local market. Romanians are friendly, hospitable, and open to new ideas and opportunities. They also have a strong work ethic, creativity, and adaptability, which are essential for success in the globalized economy.
These are just some of the reasons why Romania is a great
entry point for EU manufacturing. If you are interested in insourcing back in
Europe, you should definitely consider Romania as your destination of choice.
You will not only benefit from lower costs and higher quality, but also from a
strategic location, a favorable business environment, and a skilled and
compatible workforce.
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