New locations New possibilities

Transcription

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

2 Contents Introduction 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 2 New locations, new possibilities logistic centres vs. labour market Poland Colliers International

3 Introduction Thanks to the dynamic development, Polish industrial market year by year increases its importance in the CEE region. 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. Dominika Jędrak DIRECTOR, RESEARCH AND CONSULTANCY SERVICES Paweł Kopeć INTERNATIONAL ACCOUNT & BID MANAGER New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

4 Economy POLAND IN EUROPEAN UNION Poland 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 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. GDP GROWTH RATE (%) 6% 5% 4% 3% 2% 1% 0% 3,7% 4,8% 1,8% 1,7% 3,3% 3,5% 2,8% 2,7% * GDP *prognosis TOTAL LABOUR COSTS IN 2016 (EUR/H) Bulgaria Czech Republic EU 28 average: EUR 29.5 Poland Romania Slovakia Hungary 4 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

5 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 m 2. 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 m 2 ), Upper Silesia (2.01 million m 2 ), Wrocław (1.4 million m 2 ), Poznań (1.58 million m 2 ) and Central Poland (1.37 million m 2 ) are the largest in terms of total existing space. > > Polish industrial market is still growing. From 2014 to 2016 approximately 3.3 million m 2 of modern space was delivered to the market, while 2016 turned out to be record-breaking with approximately 1.3 million m 2. Currently over 1.5 million m 2 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 m 2 than in 2015 and at the end of Q it reached a level of 3.32 million m 2. > > The vacancy rate in the Polish market was 5.4% (compared to 4.6% in Q4 2015) SUPPLY AND VACANCY m 2 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000, , , ,000 0 supply 12% 10% 8% 6% 4% 2% 0% vacancy rate > > 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. RENTAL RATES REGION MIN (EUR/M²/MONTH) MAX (EUR/M²/MONTH) Warsaw Zone I Warsaw Zone II Warsaw Zone III Central Poland Poznań Upper Silesia Kraków Wrocław Gdańsk (Tricity) Toruń / Bydgoszcz Szczecin Lublin Rzeszów New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

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

7 Preparation of industrial space - investment process PROCEDURES AND TIME FRAMES 1 Defining the specification of space required by a tenant and detailed verification of production processes to be conducted at the site 3 Creation of an environmental impact report 2 Purchasing a land plot 1 4 Applying for a building permit (required: building design, environmental impact report and independent environmental decision) 2 5 Obtaining an environmental decision 6 Obtaining a building permit 7 Construction work 8 Acceptance of the building by e.g. Provincial Sanitary and Epidemiological Stations (SANEPID), fire services, General Office of Building Control, Labour Inspectorate 9 Applying 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) 10 Entry of the tenant to the building and starting production 3 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. and P3 Logistic Parks

8 Map of Poland new locations 6 GDAŃSK S22 SZCZECIN A1 S7 A6 S3 BYDGOSZCZ 5 TORUŃ S7 BIAŁYSTOK 25 A2 ZIELONA GÓRA POZNAŃ S5 S5 20 BOLESŁAWIEC LEGNICA A4 A8 WROCŁAW KONIN A2 S8 A4 A1 A1 ŁÓDŹ A1 CZĘSTOCHOWA 20 S7 S17 8 S7 21 S8 19 A1 WARSZAWA A2 A2 A2 KIELCE KATOWICE A4 KRAKÓW RADOM 40 RZESZÓW LUBLIN 21 ŚWIDNIK A4 A2 8 Motorways Expressways BIAŁYSTOK 25 Number of the largest employers within 30 km from city centre Roads under construction National roads Employees availalbility rating by Randstad Polska: - total lack of employees; - good access to the labour force in comparison with the national average. / Randstad Polska 8 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

9 Białystok Location > > 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. HUMAN RESOURCES 40.7% Population at mobile age* POPULATION 295,981 Population at working age UNEMPLOYMENT RATE (2016) 9% 63.7% *people capable of changing a job title, work place or reskilling at the age of ( CSO: Population at working age involving population at the age of 18-44). 100% SELECTED COMPANIES COMPANY SUEMPOL SP. Z O.O. ROSTI POLAND SP. Z O.O. SECTOR EST. NUMBER OF EMPLOYEES Food products manufacturing 900 Plastics processing 800 COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES AVERAGE GROSS MONTHLY SALARY BARTER S.A. Liquefied gas distribution 550 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. 264 DISTANCE TO POLISH BORDERS FROM BIAŁYSTOK (km) 3, PLN Russia Lithuania Białystok 50 > > 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 Germany Czech Republic Belarus Ukraine Real estate market Slovakia > > 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 9 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

10 Polmos Białystok S.A liquor manufacturer or Suempol Sp. z.o.o one of the biggest vendors of finny products in Poland. DISTANCE TO SELECTED POLISH CITIES FROM BIAŁYSTOK (km) > > 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. PODLASKIE VOIVODESHIP Olsztyn Warszawa Lublin 277 Białystok 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. BIAŁYSTOK 25 Expressways Local roads Number of the largest employers within 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS PODLASKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS ,398 6,640 8,432 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 10 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

11 Experts Krzysztof Gralak Commercial Manager Randstad Inhouse Services Central and North Eastern Poland 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. 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. Katarzyna Musiał Associate Industrial and Logistics Agency Colliers International Poland Sp. z o.o. 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 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 11 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

12 Częstochowa Location HUMAN RESOURCES POPULATION 228, % 61.2% Population at mobile age* 100% > > 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. Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). UNEMPLOYMENT RATE (2016) 6.3% > > 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. SELECTED COMPANIES COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES AVERAGE GROSS MONTHLY SALARY COMPANY TRW POLSKA SP. Z O.O. STOLZLE CZĘSTOCHOWA SP Z.O.O CSF POLAND SP. Z O.O. Infrastructure SECTOR EST. NUMBER OF EMPLOYEES Automotive parts manufacturing 4,500 Glass products manufacturing 900 Automotive parts manufacturing DISTANCE TO POLISH BORDERS FROM CZĘSTOCHOWA (km) 3, PLN Russia Lithuania > > 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). Germany Germany Belarus > > 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. Czech Republic 153 Częstochowa INFRASTRUCTURE IN REGION Cargo airport: 58 km 136 Cargo railway station: 4 km 307 Slovakia Ukraine 12 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

13 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 m 2 was acquired by Logicor in Q and leased to Nowakowski Piekarnie. > > About 45 km from Częstochowa, in Radomsko there is another Logicor warehouse with total space of 32,000 m 2 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 > > 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). DISTANCE TO SELECTED POLISH CITIES FROM CZĘSTOCHOWA (km) Wrocław ŚLĄSKIE VOIVODESHIP 195 Katowice CZĘSTOCHOWA A1 A1 Łódź Warszawa 220 Częstochowa 125 Kraków A1 20 KATOWICE 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. Expressways Local roads Number of the largest employers within 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS ŚLĄSKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 660 1,515 6,120 10,883 33,869 83,706 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 13 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

14 Expert Michał Ujma Senior Branch Manager Randstad Staffing Katowice 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. 14 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

15 Kielce Location HUMAN RESOURCES POPULATION 198, % 61.10% Population at mobile age* 100% > > 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. Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). UNEMPLOYMENT RATE (2016) 7.7% > > 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. COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES AVERAGE GROSS MONTHLY SALARY > > 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. SELECTED COMPANIES COMPANY NSK BEARINGS POLSKA S.A MESKO S.A DS SMITH POLSKA S.A Infrastructure SECTOR EST. NUMBER OF EMPLOYEES Bearings manufacturer 1,500 Munitions manufacturing 1,100 Packaging manufacturer 700 > > 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 The S7 road is also being built between Kielce and Sędziszów and the completion is planned for 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. DISTANCE TO POLISH BORDERS FROM KIELCE (km) Germany 266 Czech Republic INFRASTRUCTURE IN REGION Cargo airport: n/a Cargo railway station: 3 km 3, PLN 511 Kielce 201 Russia Slovakia Lithuania Belarus Ukraine 15 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

16 > > The nearest airport with a cargo terminal is situated in Kraków, and the communication will be provided by the S7 major road. DISTANCE TO SELECTED POLISH CITIES FROM KIELCE (km) 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 m 2, with 23,900 m 2 under construction. Given the limited availability of lands for development on the Kraków market, Kielce becomes an interesting alternative for investors. Wrocław Katowice ŚWIĘTOKRZYSKIE VOIVODESHIP 350 Łódź Warszawa 180 Kraków Kielce > > 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. Expressways Local roads KIELCE S7 21 Number of the largest employers within 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS ŚWIĘTOKRZYSKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS ,691 7,289 16,736 27,849 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 16 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

17 Expert Mateusz Rutka Branch Manager Randstad Staffing Kielce 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. 17 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

18 Konin Location HUMAN RESOURCES POPULATION 75, % 61.5% Population at mobile age* 100% > > 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. SELECTED COMPANIES COMPANY SECTOR EST. NUMBER OF EMPLOYEES Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES UNEMPLOYMENT RATE (2016) 10.3% AVERAGE GROSS MONTHLY SALARY IMPEXMETAL S.A. ALUMINIUM KONIN SAINT-GOBAIN HPM Metal parts manufacturing 700 Tools and abrasive materials manufacturing , PLN FUGO ZAMET SP. Z O.O. Infrastructure Industrial machines manufacturing and maintenance 400 > > 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. DISTANCE TO POLISH BORDERS FROM KONIN (km) Germany 272 Czech Republic 302 Konin INFRASTRUCTURE IN REGION Cargo airport: n/a Cargo railway station: 1 km Russia Slovakia Lithuania Belarus Ukraine 18 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

19 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 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 m 2. The largest one was built in 2013 in the BTS formula for Lear 32,300 m 2. > > 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. DISTANCE TO SELECTED POLISH CITIES FROM KONIN (km) Wrocław 180 WIELKOPOLSKIE VOIVODESHIP Konin 317 Katowice Warszawa Łódź Kraków > > 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. A2 POZNAŃ S5 A2 KONIN 20 > > 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. Expressways Local roads S5 S8 CITIZENS OF UKRAINE AND BELARUS WIELKOPOLSKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS Number of the largest employers within 30 km from city centre / Randstad Polska 1,810 2,870 9,118 21,028 57, ,197 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS ,275 Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 19 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

20 Experts 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. Joanna Brzuszkiewicz Branch Manager Randstad Perm Unit Western Poland 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. Maciej Madejak Head of Business Development for Poland Goodman Poland Sp. z o.o. 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 m 2 in our park in Konin. 20 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

21 Legnica/Bolesławiec Location HUMAN RESOURCES POPULATION - LEGNICA 100, % 62.4% Population at mobile age* 100% > > 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. Population at working age POPULATION - BOLESŁAWIEC COUNTY 90,199 39% Population at mobile age* Population at working age 63.3% *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). 100% UNEMPLOYMENT RATE LEGNICA (2016) BOLESŁAWIEC COUNTY (2016) > > 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. 6.4% 5.9% > > 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. DISTANCE TO POLISH BORDERS FROM LEGNICA (km) AVERAGE GROSS MONTHLY SALARY 3, PLN BOLESŁAWIEC COUNTY (2016) 3, PLN LEGNICA (2016) COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES 107 (LEGNICA) 59 (BOLESŁAWIEC COUNTY) Russia Lithuania SELECTED COMPANIES Germany Belarus COMPANY KGHM ZANAM S.A. SITECH SP. Z O.O. SECTOR EST. NUMBER OF EMPLOYEES Mining machines manufacturing 1,500 Automotive parts manufacturing 1,100 Legnica - Bolesławiec WINKELMANN Automotive parts manufacturing 1, Czech Republic Ukraine INFRASTRUCTURE IN REGION Cargo airport: n/a Slovakia Cargo railway station: 1 km 21 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

22 > > 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. DISTANCE TO SELECTED POLISH CITIES FROM LEGNICA (km) > > 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. Bolesławiec Legnica Wrocław Katowice 431 Warszawa Łódź Kraków Real estate market DOLNOŚLĄSKIE VOIVODESHIP > > In the region between Legnica and Bolesławiec there are 4 modern warehouse facilities with a total area of 66,100 m 2. The largest is a BTS project built in 2013 for Lear totaling 32,300 m 2. > > 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 m 2 ) and Faurecia in Legnickie Pole (in total 25,600 m 2 in 2 facilities). A4 S3 BOLESŁAWIEC LEGNICA 22 S5 A8 WROCŁAW S8 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. Expressways Local roads CITIZENS OF UKRAINE AND BELARUS DOLNOŚLĄSKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 970 2,380 9,602 36,112 72, ,267 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS Number of the largest employers within 30 km from city centre THE NUMBER OF REGISTERED STATEMENTS OF INTENTS / Randstad Polska ,017 Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 22 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

23 Experts Maciej Madejak Head of Business Development for Poland 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. Goodman Poland Sp. z o.o. Łukasz Pańczyk Senior Associate Colliers International 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. 23 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

24 Experts 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. Arkadiusz Więckiewicz Regional Manager Randstad Staffing South - Western Poland 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. 24 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

25 Lublin Location HUMAN RESOURCES POPULATION 340, % 61.6% Population at mobile age* 100% > > 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. SELECTED COMPANIES COMPANY PZL-ŚWIDNIK PGE DYSTRYBUCJA S.A. ODDZIAŁ LUBLIN LUBELLA SECTOR EST. NUMBER OF EMPLOYEES Aviation machines manufacturing 3,500 Power generation and distribution 1,250 Food products manufacturing 395 Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES 330 UNEMPLOYMENT RATE (2016) 7.2% AVERAGE GROSS MONTHLY SALARY 4, PLN Infrastructure DISTANCE TO POLISH BORDERS FROM LUBLIN (km) Russia Lithuania > > 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. Germany Lublin Belarus 102 Ukraine > > Lublin Airport is located 10 km from the city centre. 409 > > The northern ring road of Lublin, which is part of S12, S17 and S1 major roads currently under construction, runs directly at the airport. Czech Republic 336 Slovakia > > 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. INFRASTRUCTURE IN REGION Cargo airport: 14 km Cargo railway station: 6 km 25 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

26 Real estate market DISTANCE TO SELECTED POLISH CITIES FROM LUBLIN (km) > > In Lublin there are 5 modern warehouse facilities with the total area of approximately 107,000 m 2. 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 m 2, and Mełgiewska III Logistics Centre with the total area of 28,000 m 2. Łódź Warszawa 174 > > Currently the first stage of MLP Lublin B, with an area of approximately 6,400 m 2 remains under construction. Kielce Lublin > > About 25 km from Lublin, another logistics centre, with an area of approximately 24,300 m 2, is planned to be built in Zagrody, in the municipality of Garbów. Currently search for an investor is under way. LUBELSKIE VOIVODESHIP 177 Rzeszów Labour market A2 > > 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. S17 40 LUBLIN ŚWIDNIK Expressways Local roads Number of the largest employers within 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS LUBELSKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 870 1,053 1,668 25,469 54,982 72,652 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS ,747 Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 26 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

27 Experts Radosław T. Krochta President of the Management Board MLP Group S.A. 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 m 2. The total surface of the facilities built on the area of the park is almost 16,000 m 2. Currently, 6,400 m 2 remain under construction. 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. Robert Bronisz Plant Director ABM Greiffenberger Polska Sp. z o.o. 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. 27 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

28 Experts 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. Maciej Madejak Head of Business Development for Poland Goodman Poland Sp. z o.o. 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 m 2. Additionally, we are able to extend this location by further 17,000 m 2. Agnieszka Braunberger Branch Manager 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. Randstad Staffing Lublin and Podkarpacie Region 28 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

29 Radom Location HUMAN RESOURCES POPULATION 216, % 61.90% Population at mobile age* 100% > > 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. Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES UNEMPLOYMENT RATE (2016) 16.2% AVERAGE GROSS MONTHLY SALARY SELECTED COMPANIES COMPANY SECTOR EST. NUMBER OF EMPLOYEES ELEKTROWNIA KOZIENICE Power generation 5,000 IMPERIAL TOBACCO POLSKA MANUFACTURING S.A. Tobacco products manufacturing , PLN PHU POLSKI TYTOŃ S.A. Tobacco products manufacturing 600 DISTANCE TO POLISH BORDERS FROM RADOM (km) Infrastructure Russia Lithuania > > 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. Germany Radom Belarus > > The nearest airport with a cargo terminal is located in Warsaw, and the connection with it is provided by the S7 expressway. Czech Republic 291 Ukraine > > The eastern ring road surrounding Radom runs directly near the airport (European road E371). INFRASTRUCTURE IN REGION Slovakia Cargo airport: n/a Cargo railway station: 1 km 29 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

30 100 Real estate market DISTANCE TO SELECTED POLISH CITIES FROM RADOM (km) > > 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. MAZOWIECKIE VOIVODESHIP S7 Łódź Kraków S8 Warszawa Radom 112 Lublin WARSZAWA A2 S17 A2 A2 8 S7 RADOM 40 Expressways Local roads Number of the largest employers within 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS MAZOWIECKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 13,871 23,789 37, , , ,186 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 1,062 1,011 2,447 2,293 2,583 8,754 Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 30 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

31 Experts Izabela Mikulska-Pysiak Branch Manager Randstad Staffing Radom 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. Epaminontas Mitzalis General Director Fifor Polska Sp. z o.o. 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. 31 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

32 Rzeszów Location HUMAN RESOURCES POPULATION 185, % 63.30% Population at mobile age* 100% > > 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. Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). UNEMPLOYMENT RATE (2016) 6.8% SELECTED COMPANIES COMPANY SECTOR EST. NUMBER OF EMPLOYEES DĘBICA OPONY POLSKIE ZAKŁADY LOTNICZE Tire manufacturing 2,900 Aviation parts manufacturing 2,230 COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES AVERAGE GROSS MONTHLY SALARY BSH (F.ZELMER S.A) White goods manufacturing 920 Infrastructure 211 4, PLN > > 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). DISTANCE TO POLISH BORDERS FROM RZESZÓW (km) Russia Lithuania > > 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). Germany Belarus > > Another railway line connecting Rzeszów with the Jasionka airport is planned to be built by Czech Republic Rzeszów 92 Ukraine > > The Rzeszów-Jasionka airport with a cargo terminal is situated 12 km from the city centre. INFRASTRUCTURE IN REGION Cargo airport: 11 km Slovakia Cargo railway station: 1 km 32 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

33 Real estate market DISTANCE TO SELECTED POLISH CITIES FROM RZESZÓW (km) > > There are 2 modern warehouse facilities In Rzeszów, with a total area of about 46,000 m 2. > > Waimea Cargo Terminal Rzeszów-Jasionka, with an area of about 5,000 m 2, situated 13 km from Rzeszów, is under construction with the completion date set for June Warszawa > > Logicor Rzeszów warehouse, with an area of 32,608 m 2 is located 11 km from the city. Labour market Katowice 246 Kraków Rzeszów > > 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. PODKARPACKIE VOIVODESHIP RZESZÓW A4 Expressways Local roads Number of the largest employers within 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS PODKARPACKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS ,623 7,741 10,006 10,897 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 33 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

34 Experts Rzeszów is the capital of the Subcarpathian voivodeship and the largest city in southeastern 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. Małgorzata Konopka Key Account Manager Randstad Professionals Rzeszów 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. Wojciech Chciuk Plant Director BorgWarner Morse TEC 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. 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. 34 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

35 Zielona Góra Location HUMAN RESOURCES POPULATION 138, % 61.7% Population at mobile age* 100% > > 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. Population at working age *people capable of changing a job title, work place or reskilling at the age of (CSO: Population at working age involving population at the age of 18-44). UNEMPLOYMENT RATE (2016) 4.7% SELECTED COMPANIES COMPANY STELMET S.A. SECTOR EST. NUMBER OF EMPLOYEES Wooden materials manufacturing 1,155 COMPANIES EMPLOYING BETWEEN 50 AND 250 EMPLOYEES AVERAGE GROSS MONTHLY SALARY EXALO DRILLING S.A. CENTRUM ZIELONA GÓRA Drilling works 700 LUG S.A Infrastructure Lighting systems manufacturing 500 > > 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. DISTANCE TO POLISH BORDERS FROM ZIELONA GÓRA (km) Germany Zielona Góra 151 Czech Republic , PLN 702 Russia Slovakia Lithuania Belarus Ukraine INFRASTRUCTURE IN REGION Cargo airport: 33 km Cargo railway station: 1 km 35 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

36 Real estate market DISTANCE TO SELECTED POLISH CITIES FROM ZIELONA GÓRA (km) > > In the region there are 2 modern industrial facilities with a total area of about 21,500 m 2 Logicor Świebodzin and BTS for Syncreon in Żary. Currently in Zielona Góra a warehouse with an area of about 19,600 m 2 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. Zielona Góra Warszawa > > A two-stage warehouse development, PPH POSTĘP S.A, with a total area of approximately 7,400 m 2, 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. LUBUSKIE VOIVODESHIP 246 Katowice S3 A2 Kraków ZIELONA GÓRA 17 S3 Expressways Local roads Number of the largest employers wwwwwithin 30 km from city centre / Randstad Polska CITIZENS OF UKRAINE AND BELARUS LUBUSKIE LABOUR MARKET UKRAINIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS 1,238 2,321 3,167 10,706 33,421 65,741 BELARUSIANS THE NUMBER OF ISSUED WORK PERMITS THE NUMBER OF REGISTERED STATEMENTS OF INTENTS Regulations applying to work permits and statements described on page 40. Source: Randstad Polska 36 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

37 Experts 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 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. Anna Loc Senior Branch Manager Randstad Staffing Gorzów Wielkopolski 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. Dipl.-Ing. Steffen Rölig President HUT Technika Środowiska Sp. z o.o. HUT Technika Środowiska sp. z o.o. has been operating in Zielona Góra since 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. 37 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

38 Labour Market in Poland 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. Blue collar salaries (gross stake for the working hour PLN) Production worker/ machine operator (unskilled) Production worker/ experienced machine operator skilled) Warehouseman without enitlements Warehouseman with enitlements Packer / confectioner Foreman minimal most often maximal minimal most often maximal minimal most often maximal minimal most often maximal minimal most often maximal minimal most often maximal Białystok Częstochowa Kielce Konin Legnica Bolesławiec Lublin Radom Rzeszów Zielona Góra Source: Randstad Polska 38 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

39 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. White collar average monthly salaries (gross PLN) 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 Source: Randstad Polska 39 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

40 Documents authorising a foreigners (outside EU) to take up work in Poland Description Work permit* 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. Statement on the intention to entrust work to a foreigner** 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 Validity period Renewal Legal basis 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. Time needed to obtain a permit - 1 month (granting or refusal to grant a work permit) (2 months as a maximum) - particularly complicated matters. Fee: PLN 50 - work offered for a period up to 3 months; PLN work offered for a period longer than 3 months; PLN delegating a foreigner to Poland in order to provide an export service. 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). 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. Act of 20 April 2004 on Promoting Employment and on Labour Market Institutions. Ordinance of the Minister of Labour and Social Policy of 1 April 2015 on issuing a work permit for a foreigner. The statement is registered in the county labour office as appropriate geographically for the employer's registered office. 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. Free of charge. Maximum 6 months during a 12-month period (if the time is exceeded, the work performed is deemed as illegal). 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. 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. 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. Source: Randstad Polska 40 New locations, new possibilities. Logistic centres vs. labour market Poland Colliers International

41 Paweł Kopeć INTERNATIONAL ACCOUNT & BID MANAGER Marzena Milinkiewicz DIRECTOR OPERATIONS (STAFFING) 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:

42 Shaping the world of work Comprehensive investor support throughout Poland 140 locations in Poland 550 consultants supporting our clients temporary workers employed every day specialists recruited per year employees serviced by HR Solutions team candidates in our database 1Number on Polish HR Forum clients Randstad Employer Brand Research we help brands grow 60 labour market reports released 42 New locations, new possibilities logistic centres vs. labour market Poland Colliers International Randstad Polska Sp. z o.o., Al. Jerozolimskie 134, Warszawa

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44 554 offices in 68 countries on 6 continents United States: 153 Canada: 34 Latin America: 24 Asia Pacific: 231 EMEA: 112 2,3 billion revenue in million m 2 space under management CONTACT: Maciej Chmielewski Partner, Industrial and Logistics Agency maciej.chmielewski@colliers.com Tomasz Kasperowicz Partner, Industrial and Logistics Agency tomasz.kasperowicz@colliers.com Dominika Jędrak Director, Research and Consultancy Services dominika.jedrak@colliers.com Wiktor Lesiak Junior Analyst, Research and Consultancy Services wiktor.lesiak@colliers.com employees Colliers International Pl. Piłsudskiego Warsaw Colliers International Colliers International Group Inc. (NASDAQ and TSX: CIGI) is a global leader in commercial real estate services with 15,000 professionals operating in 68 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals Global Outsourcing for 10 consecutive years, more than any other real estate services firm. Colliers International has been active in the Polish market since 1997 and operates through offices in Warsaw, Kraków, Wrocław, Poznań, Gdańsk Katowice and Łódź with over 250 employees in total. The company has been often honored for its achievements by industry organizations such as Eurobuild, CIJ Journal, CEE Quality Awards and the International Property Awards. Colliers most recent distinction in Poland include the Outsourcing Star, given in recognition of its status as one of the most active real estate advisors in the outsourcing sector; and the Gazele Biznesu for being one of the most dynamically developing companies in Poland. Copyright 2016 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No resposibility is assumed for any inaccuracies. Readers are encouraged to consult their profesional advisors prior to acting on any of the material contained in this report.