Transcript poland - Tom Zacharski

Country Presentation - Poland
SICC 2009
Poland and its leadership role in Central / Eastern Europe
19th of March, 2009
Aleksander Jóźwik
Justyna Kowalczyk
Agata Rundo
Tomasz Zacharski
Agenda
AGENDA
1. Basic Data
2. Contemporary issues
Economic Crisis
European Football Championships 2012
American Anti-Missile Shield
3. Poland as an attractive Business location
Agenda
AGENDA
1. Basic Data
2. Contemporary issues
Economic Crisis
European Football Championships 2012
American Anti-Missile Shield
3. Poland as an attractive Business location
Addresing the common misconception…
POLAND
…about Polar Bears walking on Polish streets.
POLAR
Addresing the common misconception…
Average Temperature in Poland is about 20OC
Average Temperature in the North Pole is about -20OC
POLAND
Basic information about Poland
Poland has a slightly greater population than Canada and is
the 6th largest country in the European Union. It’s GDP of
~$550b is comparable to the one of Ontario.
BASIC DATA
• A very homogenic nation
• Population: 38m people
• Size: 300.000 km2
• GDP: $550b
• Dynamic growth (5,4 %)
SIZE COMPARISON
POLAND AND ONTARIO
Fun facts about Poland
Fun facts about Poland
Fun facts about Poland
Fun facts about Poland
Fun facts about Poland
Fun facts about Poland
Fun facts about Poland
Agenda
AGENDA
1. Basic Data
2. Contemporary issues
Economic Crisis
European Football Championships 2012
American Anti-Missile Shield
3. Poland as an attractive Business location
Summary of Poland’s Economic Situation
Poland, while experiencing problems with the credit crunch
and export breakdown, remains relatively resistant to the
effects of the economic crisis
POLAND – ECONOMIC OUTLOOK
-4,0%
-2,3%
+2,0%
+1,7%
-1,8%
+2,7%
+1,8%
+1,8%
• Polish banking system was relatively underdeveloped at the moment of the credit crunch
(banking assets <75% of GDP), which softened
the blow during the crisis
• Poland has a big internal market and
enterprises are used to funding investments
through equity rather than debt
• Currently Poland struggles to distinguish itself
from the crisis-struck CEE in the eyes of the
investors
• Polish government is determined on tight fiscal
policy and providing additional incentives for
business
After the crisis Poland may well rise as the best standing
economy in Central & Eastern Europe.
Information about the EURO 2012 Football Championships
Football European Cup 2012 (hosted by Poland and Ukraine) is
currently the biggest infrastructure project in CEE, with over
38b EUR to be spent in 2008-2012
•
•
•
Considered one of the most important
sport events in Europe – held for the first
time in CEE region
•
Generally considered the most ambitious
project in Polish post-transition history
•
Total value of the project amounts to b38
EUR, in areas such as: roads, hotels,
sport facilities, etc.
At the moment Poland is managing to keep up with deadlines for the
majority of its projects (still problems with road and aviation
infrastructure)
Ukraine is currently facing big problems due to economic crisis and
political instability  talks of shifting the Euro from Ukraine to Germany
The Anti-Missile Shield Project
The most delicate political issue in Poland at the moment is the
US anti-missile defence system which will be located in Poland
and Czech Republic
• While it was designed to repel the nuclear
threats of Iran and North Korea, the system is
considered a threat by Russia, which fears it
could be used against its strategic nuclear
forces – thus threatening the status quo
between both countries
• Recently Russian authorities threatened that
they will locate more of their strategic missiles
in the Kaliningrad region if Poland and USA
will continue their anti-missile shield project
• While the agreement regarding the placement
of the anti-missile system was signed between
USA and Poland last year, there are
discussions
whether
the
Obama
administration will back off from the deal
Agenda
AGENDA
1. Basic Data
2. Contemporary issues
Economic Crisis
European Football Championships 2012
American Anti-Missile Shield
3. Poland as an attractive Business location
European Attractiveness Survey
Poland is still one of the most intended locations of investment
projects in Europe.
Source: Ernst & Young, „European Attractiveness Survey” 2005
Annual hours of work across the world
Although Poles are hard-working and
determined to succeed...
Source: OECD, Employment Outlook 2006
Wage structure in Poland
...wages in Poland are still among the lowest in
Europe.
Labor cost per hour in 2006 (USD)
Average monthly gross wage in EUR
700
650
600
550
500
450
400
350
300
1999
2000
Poland
Source: EIU 2006
2001
2002
Czech Rep.
2003
2004
2005
Hungary
Source: Statistical Offices
Labor costs in Poland equal to about one fifth of the Western Europe ones
Since 2003 labor costs in Czech Republic are higher than in Poland
Business Process Offshoring
Poland has multiple academic and business centers, which
assured balanced development of the country
According to PAIiIZ information there
are 35 BPOs located in Poland.
Gdańsk
Olsztyn
Szczecin
Scope of activities: finance and
accounting, HR, logistics, CRM.
Warsaw
Total employment: 6,500 people.
Poznań
Gądki
Examples:
Łódź
Piaseczno
Wrocław
Dąbrowa
Górnicza
Kraków
Bielsko-Biała
≤2
3-4
5-6
7>
NUMBER OF CENTERS
Research & Development Centers
Similarly, R&D centers are spread throughout the country,
mainly next to main academic and scientific sites
There are 40 R&D centers created by
foreign investors in Poland. They totaly
employ over 4500 people.
Gdańsk
Szczecin
The biggest SSC belong to and serves:
Warsaw:
Bydgoszcz
Radzymin
Gorzów
Wielkopolski
Warszawa
Poznań
Garwolin
Zielona Góra
Krakow:
Wrocław
Bielawa
Częstochowa
Gliwice
Kielce
Kraków
Katowice
Wrocław:
Bielsko-Biała
NUMBER OF CENTERS
Skawina
Key sectors and locations in Poland
Even spread of business centers across Poland allowed for the
entry of various industry giants
Electrical Machinery &
Apparatus
• Average gross wage rate: 510
EUR (average wage for engineers 820 EUR).
• Employment: 73 000 persons.
• Number of foreign companies: 39
Machinery & Equipment
•Average gross wage rate: 520 EUR
(average wage for engineers - 820
EUR).
• Employment: 138 600 persons.
• Number of foreign companies: 36.
Automotive
•Average gross wage rate: 500 EUR
(average wage for engineers – 710830 EUR).
Metallurgy & Metal
• Average gross wage rate: 570
• Employment: 120 000 persons.
EUR (average wage for engineers 820 EUR).
• Number of foreign companies: 300
(Tier 1 + Tier 2).
• Employment: 176 700 persons.
Source: Central Statistical Office, AG „Test” 2004
• Number of foreign companies: 50
General Electric case
GE started operation in Poland in 1992 and
have invested since then $400 mln assuring
jobs to 6000 emlpoyees
Attractiveness Criteria
Big domestic market
Talent pool
Pricing
Mobility of workforce
Engineering
competencies
General Electric Showcase
GE Money Bank
Variety of operations: banking,
production, R&D
3 factories GE Power Control
Warsaw, Gdansk, Wroclaw, Lodz,
Bielsko-Biala
Engineering Design Centre (Warsaw),
Project Centre GE Security (Gdansk)
THANK YOU!