Investors and business leaders generally weight in all the arguments, all the pro’s and the contra’s when choosing to expand their business in a region or other. They are aware of facing a decision with long-term impact, as the necessary drive to engage in a relocation project with all the costs and hurdles involved arises rarely in the lifespan of a company.
Therefore the drive to find a location fulfilling both the short and long term objectives of the business. Should be a place with the right cultural fit, making it easier to implement the company’s working-culture, while still presenting competitive advantages years later.
Romania in general is attractive for investments and will remain so for years to come. We would like to draw your attention on a particular region, with distinct features and opportunities to offer. Let us shortly outline, why we think Szeklerland in the heart of Romania is the right place for investments.
The macro-economic development of the Eastern regions of the European Union doubled by the relative political inaction of the local and regional administration in Szeklerland and their inability to channel some of the industrial investment in-flow the region have created the rare synergy: while benefiting of the improved economic, legal framework to the same extent as any other region of Romania, Szeklerland still has more to offer compared to other regions. Let us explain why.
At the end of 2015 Szeklerland finds itself in a stage of development bellow the Romanian average. This is mainly due to the lack of recent industrial investments; Szeklerland was unable to capitalize on the re-industrialization wave of the last 2 decades. Most of its industry is based at one hand on the break-up and privatization of the large communist state industry planted in the region from the 60’s through the 80’s, on the other hand on the still running “contract manufacturing” type of early bird foreign investments of the 90’s, mainly active in the textile industry.
As well as the above statement might represent a problem for the region it can equally represent a unique opportunity for potential investors:
Availability of skilled labor, inhabitants with industrial culture:
- Availability of low-cost labour is less and less an obvious feature of Romania’s economy, rather we shall formulate as one of the best labor value – labor cost ratio in the EU currently.
- Skilled labor is available to a higher extent and for competitive cost, than in the popular industrial clusters-regions of the country
- Tens of thousands (if not hundred) from the region are working abroad, mostly in industry and services all through north-western Europe, having accumulated an industrial culture specific to the host areas.
- Szeklerland is inhabited largely by Hungarian speaking ethnic community, representing a disciplined and stable workforce. While the Romanian speaking majority has largely chosen for Spain and Italy for working abroad, tending to fill positions in agriculture and constructions (for obvious language similarity reasons), the labour emigrating from Szeklerland has flown into North - West European countries getting employed mainly in industry and services.
- This skilled labour is in temporary emigration and it is ready to return if opportunities arise. Even if these jobs are paying less to what they currently earn abroad, but still more than what is currently available (or rather not available in the region). The experience shows, that once they offered and opportunity people choose to return to the region and try to capitalize on the knowledge and wealth they have accumulated abroad.
- It is important to mention in this context the high IT literacy of the population, enabling even IT sector type of investments
- There are infrastructure barriers to overcome, as anywhere else in Romania, but you will meet a drive by local authorities to provide the right support in a bid to catch up to other regions of the country. As The local and regional authorities might still lack management capabilities, but be assured you will meet openness and readiness to support on their behalf
- There is one functioning industrial park in the region, near Targu Mures/Marosvásárhely. The availability of industrial parks is still below the national average, although there are projects in preparation, being in an early phase of development.
Szeklerland is the geographical center of Romania
- The region is ideal for logistical centers or distribution networks. One should take a look on the map, and the data will speak for itself. Any major city, any county is a day return trip.
- An improving transportation network (road, air) and the presence of several global logistic service providers puts Szeklerland 24 to 48 hours away from any location on the globe.
In case we succeeded to spark your interest for our region, you will find more detailed information within this presentation site, including contact to service providers ready and able to support you.