Balkans Potential

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Nearshoring Potential in the Western Balkans

Port of Durrës - Balkan Trans — Port of Durres , Albania

After global supply chains were thrown into disarray due to shutdowns and pauses in supply from the COVID-19 Pandemic, companies realized the need to shorten supply chains. According to a Research Report written by The Vienna Institute for International Economic Studies on Nearshoring Potential in the Western Balkans, the shortening of supply chains was a long time coming and the pandemic only hastened this process.

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“Global trade and FDI have been slowing down for the last decade, and now the pandemic is likely to act as a further catalyst in this process.”

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The Vienna Institute states that “closer geographical locations, back up production sites, and higher inventories are some of the options they are considering.” In other words, most companies are considering nearshoring in order to create more self-sufficiency and reliability. Because many of these companies have production or customers in Europe, the Western Balkan countries are in a convenient location and have a cheap cost of labor making them an attractive option for companies looking to nearshore.

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One German manufacturing company, Forschner, notes how convenient Albania’s proximity to Europe is. “Our customers are located in Europe. We can reach them through Italy, by ferry and also by land transport. So, it is also this position towards Europe, which we can reach in 24 hours by special transport and so on.” Additionally, companies, like Forschner, have also expressed satisfaction with the quality of the workforce. “People are flexible. The people learn fast. I think it was a good decision, at least that is how it is seen in Germany...” (Forschner, Albania)

Read the full report on the near-shoring potential of the Western Balkans and Albania here: https://wiiw.ac.at/getting-stronger-after-covid-19-nearshoring-potential-in-the-western-balkans-dlp-5814.pdf

Nearshoring Potential in the Western Balkans

After global supply chains were thrown into disarray due to shutdowns and pauses in supply from the COVID-19 Pandemic, companies realized the need to shorten supply chains. According to a Research Report written by The Vienna Institute for International Economic Studies on Nearshoring Potential in the Western Balkans, the shortening of supply chains was a long time coming and the pandemic only hastened this process.
“Global trade and FDI have been slowing down for the last decade, and now the pandemic is likely to act as a further catalyst in this process.”
The Vienna Institute states that “closer geographical locations, back up production sites, and higher inventories are some of the options they are considering.” In other words, most companies are considering nearshoring in order to create more self-sufficiency and reliability. Because many of these companies have production or customers in Europe, the Western Balkan countries are in a convenient location and have a cheap cost of labor making them an attractive option for companies looking to nearshore.
One German manufacturing company, Forschner, notes how convenient Albania’s proximity to Europe is. “Our customers are located in Europe. We can reach them through Italy, by ferry and also by land transport. So, it is also this position towards Europe, which we can reach in 24 hours by special transport and so on.” Additionally, companies, like Forschner, have also expressed satisfaction with the quality of the workforce. “People are flexible. The people learn fast. I think it was a good decision, at least that is how it is seen in Germany...” (Forschner, Albania)

Read the full report on the near-shoring potential of the Western Balkans and Albania here: https://wiiw.ac.at/getting-stronger-after-covid-19-nearshoring-potential-in-the-western-balkans-dlp-5814.pdf