"On the one hand, the energy crisis causes a whole range of problems for manufacturing companies, which, despite the ceiling, have problems paying their obligations. On the other hand, however, a number of companies seized this opportunity and chose the Czech Republic as the destination of their investments. These aim to deliver products to the market not only for renewable energy sources, but also for the overall efficiency of the energy intensity of production plants," says Petr Narwa, Head of Transaction & Consulting Services at Prochazka & Partners.
The fact that there is a hunger for technologies that limit energy consumption is also confirmed by a recent survey among members of the Union of Industry and Transport (Spektrum, 4Q/2022, p. 5), where the most common solution to the fight against higher energy costs is investment in energy savings (67 %). Of these, 60% of companies intend to install their own photovoltaic power plants, change lighting to more efficient ones (53%), modernize the heating system (26%) and install heat pumps (15%).
"The drive to produce technologically demanding products with high added value directly in Europe due to the crisis in supply chains has made Central and Eastern Europe, and thus the Czech Republic, still an attractive destination for many international investors. Large investments in the production of heat pumps or battery recycling are planned here, and major international players are already completing research and development centers here, such as Honeywell in Brno," adds Narwa.
The fact that the region is attractive is also evidenced by the so-called nearshoring trend, when companies want to have their production closer to their main markets than in Asia. The reason for using countries like the Czech Republic in Europe is easy. Construction works are about 25% cheaper, and the prices for rent and labor are also cheaper. For premium spaces in the Czech Republic, we now range from €5.75/m2/month in less attractive locations to €6.80/m2/month in the so-called "hot spots", which are Prague and Brno.