iO Partners & Miebach: Automation, cost advantage and the CEE region as a strategic hub

At the iO Partners regional client event in Budapest, experts from iO Partners and Miebach discussed how competitive costs, strong infrastructure and accelerating warehouse automation are reshaping supply chains across the region.

Central and Eastern Europe (CEE) is playing an increasingly important role in Europe’s industrial and logistics networks. The region is no longer seen merely as a source of cost advantages for companies; it is increasingly positioned as a strategic location for organising production and distribution, as highlighted in presentations by experts from Miebach and iO Partners. The region’s economic weight has grown significantly in recent years, driven by a combination of factors: proximity to Western European markets, the development of infrastructure needed for industrial investments, as well as a skilled workforce and relatively lower operating costs.

CEE is becoming a strategic hub for warehouse and production facilities

According to James Fitzgerald, the region’s importance within European supply chains is likely to grow further and at a dynamic pace, particularly as industrial and logistics property rents in the region remain significantly lower than in major Western European cities. This makes countries such as Hungary, Czechia and Slovakia particularly attractive investment destinations. Hungary itself plays a prominent role within the region. Many large international consumer goods manufacturers already operate significant production capacities in the country, often supported by automated factory warehouses and regional distribution centres. 

Automation of warehouses is increasing rapidly

Alongside the development of logistics infrastructure, another clear trend is emerging: the automation of warehouses. According to Marcel Reinhardt, Partner and Director at Miebach, rising labour costs in the region are prompting companies to increasingly adopt automated solutions. “Robotics, autonomous mobile robots and artificial intelligence are already developing at a rapid pace,” he emphasised, adding that these technologies are expected to play a growing role in warehouse operations in the coming years.

Experts estimate that the typical payback period for automated warehouse systems in Central and Eastern Europe currently ranges between six and nine years, which is already an acceptable investment horizon for most companies. 

The most widespread solutions include automated storage systems, self-driving vehicles and robots operating inside warehouses that connect production and storage processes. Other technologies are also expected to appear more widely in the region, such as robotic truck unloading and automated order picking, which are currently gaining traction primarily in Western European markets.

The iO Partners client event series will continue in the second half of the year in Bratislava and Prague. Through these events, and with the involvement of clients and proven market practices, the company aims to explore and showcase new solutions shaping the future of the industrial and logistics market.