The Czech Republic ranks fifth in the Global Manufacturing Risk Index
Since entering the index in 2016, the Czech Republic has consistently ranked among the top manufacturing destinations among the 47 countries covered in the annual report. The country rose to the top of the European rankings for the first time in 2020 and also managed to defend the national title this year. It ranked fifth overall in terms of the global index, surpassed by China, India, the United States and Canada.
Jiří Kristek, who heads the Industrial and Retail Warehousing section of Cushman & Wakefield’s Czech subsidiary, said having the country hold the position is “very good news for the whole economy” and “shows the attractiveness of the country for new constructions”. According to Kristek, several factors contribute to this, including the Czech Republic’s strategic position within Europe, its skilled workforce and its stable economic environment.
The report assesses countries based on four criteria. The first is “Bounce Back,” which examines the anticipated ability to restart manufacturing operations following the impact of the coronavirus pandemic. The second is ‘Conditions’, which compares business environments, including talent/labour availability and access to markets. The third is “operating costs,” including labor, electricity, and real estate. The final criterion relates to political, economic and environmental risks.
Compared to last year, Czechia improved its position in the “risk” criterion, ranking fifth overall. In terms of ability to recover from the coronavirus crisis, the country ranks in the second quarter of the list of countries, with China, Ireland and the Netherlands occupying the top three spots. The same position in the second quarter was occupied by the Czech Republic also with regard to the criterion of operating costs. In the European context, Lithuania, Russia, Bulgaria, Turkey and Romania scored higher in this regard.
In its summary of global manufacturing trends, Cushman & Wakefield states that the COVID-19 pandemic has highlighted production and supply chain vulnerabilities. However, climate change, weather-related issues and geopolitical instabilities have also contributed to increased delays and other obstacles to global freight transport, according to the report.
The negative impacts on manufacturers’ margins over the past year have been so severe that, according to Cushman & Wakefield, companies have been forced to put in place measures to protect their supply chains and production lines. production.