The Pull of Brno
2003/08/21, CTP Project Invest, s.r.o, Development Project Company settled in Humpolec, AFI Member
A very apparent trend has been forming in Brno among international manufacturers and providers of logistic services looking to locate facilities in the Czech Republic. Whereas prior to this trend companies locating operations in the country would concentrate their focus in or around the Prague area and Plzen- they now after initial research in these areas realize that there is a significantly lower cost, strategically placed, strong alternative just a stone's throw away, Brno.
This has been a considerably noticeable trend since the year 2000, after most of the reasonable quality used industrial facilities were acquired companies with a broader view chose to look at markets such as Brno.
The trend is not limited to industrial activities, there is growing interest being shown by the services sector, call centers, research and design centers.
After finding considerable savings by locating in the area many companies changed their initial strategies of wanting to locate in the Prague area and chose its smaller- but equally well equipped- brother.
The following factors have been proven to catch the eyes of international firms:
- 400,000 Inhabitants
- Long manufacturing history
- Lower operational costs
- Strategic central European location- 2 hours drive from Prague, 1.5 hours from Vienna, further direct access to Bratislava, Budapest, Olomouc and Ostrava.
- Highway and ring-road access
- 6 Universities, 40,000 students
- Skilled, well educated labour force
- High unemployment (9-10%), lower wages
- Airport
- International trade fair hub
- Large supplier base in the area
- Ease of import/export to Germany, Austria, Hungary, Poland, Slovakia etc.
- High level of language skills (primarily German and English)
Brno is already home to fast thinking multi national companies including: Honeywell, Tyco, IBM, Danzas, IMI Norgren (IMI Group), Xaloy AG, IFE, Knorr Bremse and Andrew Corporation
Paul Deverell
Business Developer
paul.deverell@ctpinfo.cz