Is the reality as bad as the image?
Poland used to be one of the poorest countries in Europe and still has this reputation today. The fact is, however, that even in economic crises economic growth has been recorded. This is mainly due to the fact that Poland’s public debt is very low, while the banking sector is also very well regulated. This offers advantages for German buyers. Find out exactly what these advantages are in our Procurement Market Check for Poland.
Krótkie fakty – short facts
Poland is not only Germany’s largest trading partner in Eastern Europe, imports from Poland are also significantly higher than imports from other low-wage countries. Low wages, high economic growth and a highly qualified workforce also have a positive impact on the economy. Poland offers historically grown production structures in the fields of automotive engineering and supply, mechanical and plant engineering, electronics, chemicals, furniture, textiles and clothing.
Most important procurement market for German industry
Poland’s economic growth in 2018 was 3.2%, with an upward trend. The inflation rate was 2.1% in 2018. Export numbers constantly outweigh the import numbers. This is illustrated by the import and export figures, which in 2016 were 178.2 billion euros and 183 billion euros respectively. Germany alone imports 178.2 billion euros worth of goods from Poland. Poland has been experiencing uninterrupted growth for more than ten years. Meanwhile, GDP grew by 4.3% in 2011.
The Republic of Poland is one of the most important procurement markets for industries in Germany, especially in the automotive, mechanical and plant engineering, electrical engineering and chemicals sectors. Poland has also become one of the most important and strongest trading partners for German mechanical engineering companies in recent years. A total of 10.7% is accounted for by automotive parts alone and 9.3% of all exports are machinery.
The top company in Poland is PKN ORLEN. The largest mineral oil and petrochemical group today includes 550 Star petrol stations and has a turnover of several billion euros. The company has also been represented in Germany since 2003. Since then, the group has been growing steadily and now employs more than 20,000 people in Germany. But the Polish furniture manufacturer Nowy Styl is also well known outside Germany and continues to grow.
Poland’s mineral resources
With its size of 312,679 km² Poland impresses with a high-quality lignite and coal deposit, which is mainly located in southern Poland, in the Upper Silesia region. In addition to coal, the country also contains large quantities of copper and silver. Also, only recently huge quantities of natural gas were discovered along the river Vistula.
Since 2016, the economy has been growing mainly in the areas of education, research and innovation policy. Germany plays an important role as a cooperation partner in the fields of science and technology.
Poland has missed the second and third stages of industrialisation, which is why the use of robots in production facilities is still rare. In the coming years, however, Poland wants to seize the opportunity of the fourth stage of industrialisation and increasingly digitalise its production.
Poland is rather cautious when it comes to climate protection. A general overhaul of the energy system is not up for discussion. As a result, the share of renewable energy sources is low. Poland still prefers to modernise its power plant fleet, which is mainly based on lignite. However, more investments in wind energy are to be made in 2019 in order to achieve a share of 15% renewable energies for 2020.
Poland has a population of 37.98 million. In Poland, 66.1% of the working age population between 15 and 64 years are in paid employment. This figure is below the OECD average of 67.8%. At the beginning of 2019, the unemployment rate was around 3.5%. Compared to other European countries, this is a low unemployment rate. Since the turnaround in 1989, this is the best rate achieved in the country. However, the consistently positive situation also brings up problems. As industries and companies are constantly growing, there is a shortage of skilled labour. As a result, the demand for foreign workers is also growing. It is difficult to compensate for the shortage of skilled workers by deploying refugees, as integration assistance does little to help integrate skilled workers and thus have a chance in the labour market.
20% of Polish citizens hold a university degree, often from one of the leading technical universities in Warsaw, Wroclaw, Krakow or Lodz. The level of qualification at the workbench has also increased significantly. About two percent of the working population work in mining.
European football championship makes infrastructure shine
Poland’s infrastructure alone offers very good conditions for German buyers planning to purchase goods from Poland in the future. Poland has expanded its motorway network for the European Football Championship in 2012. Poland’s most important port, Gdansk, is even competing with the port of Hamburg. However, the conditions for just-in-time deliveries are not quite as good. As the customs officers at the border between Germany and Poland still clear many trucks, the border crossings are usually very time-consuming. With a length of 19,837 kilometres, however, the railway network is very well positioned.
What do buyers have to consider?
In order to reach the Baltic coast of Poland, the country levies tolls. The A1, A2 and A4 motorways in Poland are subject to tolls for all vehicle types. Of course, the amount you must pay depends on the vehicle and the length of the route. Vehicles with a gross vehicle weight of more than 3.5 t have to pay a toll on all highways and trunk roads. Poland does not have a toll sticker. The toll system is similar to that of Italy and France. A toll card is drawn during the drive, which is settled at a toll station as soon as the motorway is left. Only rarely and on a few sections a lump sum is due.
If more than 10.000 Euro cash are imported into Poland, this should be declared to customs in advance. This also applies to other means of payment. If it is planned to transport goods to Poland or vice versa, quantitative restrictions must be observed. As far as the travel allowance is concerned, it is decisive from which country one enters. It is particularly important to note if goods are to be procured from Russia, Belarus or the Ukraine to Poland by any means other than air or sea.
Conclusion
The Polish procurement market offers great potential for a successful future. In addition, the infrastructure offers the best conditions for importing from Poland. It is not only environmentally friendly, but also cost saving. Also, the high amount of copper and silver is an advantage in the production of computer technology.