This is the conclusion of the most recent “Nearshoring Index 2024” study by Savills, which analysed 26 countries.

The results were based on factors that Savills studied, including resilience, economic cost (rents, energy and labour costs), the business environment and the countries' ESG performance.

The study concluded that the most attractive countries for investing in industry are Portugal, the Czech Republic, Poland, Sweden and Japan, reveals the “Nearshoring Index 2024”.

There are several factors that place Portugal at the top of the most interesting countries to invest in the industry, as highlighted by Tiago Cortez, Associate I&L Investment at Savills, cited in a statement sent to newsrooms:

- Greater energy independence and competitiveness;

- Political context of relative stability;

- Qualified labour;

- “Very strong” ESG (Environmental, Social, and Corporate Governance) policies;

- Portugal’s geographical position is strategic, as “it allows us to serve both the European and American markets very quickly”, he says.

For Tiago Cortez, the conclusions of this study “are excellent news for Portugal” and confirm the “unprecedented interest in our country for the installation of new production units ranging from consumer goods, packaging, automobiles or energy”.

“The investment market in industry and logistics in Portugal has attracted more and more new investors and global players, at the moment market movements are underway with potential transactions of around 400 million euros in capital markets and development operations”, adds the Savills expert cited in the document.

Countries that have lower economic costs tend to be those most sought after by industrial companies. But locations that score well in the economic costs pillar of the “Nearshoring Index” don’t tend to score as highly in terms of resilience, business environment and ESG.

There are, however, exceptions, such as Poland, Portugal and the Czech Republic, which provide a combination of low cost, resilience and offer companies access to the European single market, says the same publication.

“When the concept of ‘nearshoring’ began to emerge, concerns of a disruption to the global wholesale supply chain were clear. What has happened so far, however, is more subtle: production trends appear to show that although companies are establishing themselves in new locations, they continue to prioritise cost reduction, favouring locations like Mexico and Vietnam.” explains Charlotte Rushton, Analyst, Savills World Research.

But there are exceptions: “Some industries, such as semiconductors, electric vehicles and energy, are more sensitive to geopolitics and trade policy, so companies here tend to prioritise more qualified and higher-value production and, therefore, favour places like Sweden, the UK and the USA”.