Lodz

The favourable economic situation of Lodz is due to a number of key factors. First and foremost is its central location, which, together with a well-developed infrastructure (the airport, the junction of the A1 and A2 trans-European motorways, a well-developed rail network, and the most modern railway station – Lodz Fabryczna, which will become a key point on the high-speed rail map in the future), provides attractive opportunities for business development, especially in the logistics sector. The Lodz Agglomeration Railway is also crucial for the development of the agglomeration. The lines run to Sieradz, Kutno, Łowicz, Koluszki, Skierniewice and between Lodz Widzew and Zgierz. More than 2 million people live within its reach. In 2023, Łódź Airport plans to handle 335,000 passengers.

Zuzanna Krech

Associate, Regional Director Central Poland, Cushman & Wakefield

Expert commentary

For a long time now, the people of Lodz have been receiving a consistent message about major investment changes in transport infrastructure and quality of life. Today we are witnessing the final stage of these projects. Both residents and investors are beginning to make real use of the new facilities.

Construction of the cross-city tunnel, a strategic investment by the city to connect its neighbourhoods and enable long-distance train travel, is underway. The project will be completed in several stages, resulting in shorter travel times from Lodz to Warsaw, Wroclaw or Poznan. The airport remains a challenge for the local authorities. A modern airport with an expanded network of connections would attract more companies looking for logistics facilities, which means even more jobs.

Nevertheless, the city has seen incredible growth in the logistics and transport sector. We are also seeing an improvement in employment and living conditions, which has had a positive impact on the service sector. The capital of Łódź is maturing, but there is still room in the city for new businesses.

Anna Szurek

Negotiatior, Cushman & Wakefield

Expert commentary

Lodz competes with great determination for new investors, promoting its uniqueness and potential talent pool, while ensuring high quality living and working conditions. As a result of consistent efforts, the following companies have recently decided to locate in Łódź Alorica, Onwelo and First Derivatives. However, new investors do not always contribute directly to a reduction in vacancies. Some of these players are opting for interim, more secure options such as instant offices. Investors in flex space have recognised the potential in Łódź and have recently expanded their portfolio of flexible office space. The total volume of office space in Łódź already exceeds 635,000 sqm, with almost 48,000 sqm currently under construction. A specific feature of the maturity of the Łódź real estate market is the high sensitivity of the larger individual projects being delivered to the market. The WIMA Widzewska Manufaktura (Cavatina) project is scheduled to be delivered to the market in Q2 2024, which will provide a relatively large boost to modern office space. The vacancy rate is therefore expected to rise again in 2024.

The City’s Investor and External Co-operation Office works within the city to support businesses already in the city and those considering new investment. Services include Help with site selection, arranging meetings with career offices, universities and job centres, and assistance with public relations.

Entrepreneurs are also actively supported by the District Labour Office, Łódź Special Economic Zone, Łódź Investor and Exporter Service Centre, Łódź Regional Development Agency and Italian Chamber of Commerce and Industry.

Lodz is one of the most important academic centres in Poland. There are 21 higher education institutions in the city, 7 public and 14 private, as well as 30 research and development institutions. There are more than 70,000 students, almost a quarter of whom come from different parts of the country and from abroad.
In addition, the Youth in Lodz programme was established to encourage young people to commit their future to Łódź. The programme is designed to support the career development of Łódź students and to provide local entrepreneurs and potential investors with highly qualified talent.

The programme is implemented by the Office for Economic Development and International Cooperation of the City of Lodz, which, in cooperation with the largest universities in Łódź and leading employers, implements the programme’s initiatives, such as an internship and apprenticeship portal, paid summer internships, a scholarship programme, free training, company tours and a discount card.

Monika Kiliańska

Team Manager, IT Services Antal

Expert commentary

Lodz is one of the largest academic centres in Poland, attracting young people from all over the country. Many students choose this city as a place with high educational potential. Many young people want to study here not only because the universities offer a wide range of interesting programmes and a high level of education, but also because the prices of flats and rents are not excessively high compared to other cities in Poland. On average, we will pay PLN 8,800 per square metre for an apartment on the primary market. Meanwhile, a student will have to pay an average of PLN 950 to rent a single room.

There are 21 higher education institutions in Lodz, educating over 71,000 students. The best higher education institutions in Łódź ensure a high level of academic and research activity. With their dynamic development and excellent results, they show students that it is worthwhile to study here. Most of the universities in Lodz are active in research. This is a place where students can broaden their knowledge in their chosen field of study and pursue their interests. Study groups offer students a wide range of activities to develop their hobbies and interests, organise meetings, interesting lectures and study trips. Many universities in Lodz have established cooperation with European universities, which enables young people to complete internships, work placements or part of their studies in other countries. The universities in Lodz are the leaders in terms of the number of students who go abroad for internships. Students also have the opportunity to obtain double diplomas under partnership agreements with universities in various European countries.

Polish and international companies, which are partners of many universities in Łódź, are located in Lodz. The list of companies is long and includes Fujitsu, Ericpol, Atos, Flint Group, BSH, GFT, Infosys, Solar, Nordea and many others that actively seek graduates and help them start or develop their professional careers.

Currently, more than 2.3 million people live in Lodzkie Province and about 1 million in the Łódzkie agglomeration. This testifies to the high potential of human capital and the wide range of employment opportunities for professionals.

As the third largest city in Poland, Łódź attracts investors with its central location, rich academic background and growing transport infrastructure, providing easy access to the largest business centres in Poland and Europe. The city is an attractive relocation destination for 20% of professionals and managers from all over Poland.

Roman Zabłocki

Business Unit Director, Engineering & Operations Antal

Expert commentary

Lodz is developing new sectors of the economy, such as technology, innovation or services, which create a demand for employees with specialised skills and affect the region’s employment potential. Changes in labour market trends, an increase in the demand for employees in specific areas of specialisation such as customer service, logistics, data analysis, IT and sales, or changes in employee preferences (e.g. remote working) affect the availability and demand for employees. In fact, 56% of employers report an increase of at least 6% in staffing. This is by far the highest rate compared to other cities. Almost 20% say they will maintain their current level of employment and only 4% say they will reduce their workforce in the near future. The unemployment rate of 5.4% continues to indicate the ability to attract new employees for upcoming investments.

The city’s business potential is borne out by the figures. There are more than 100 Shared Service Centres (SSCs) operating in the capital of Łódź Province, and last year, as every year, new international investors joined this group. Łódź also boasts an impressive pool of specialists.

Currently, over 36,000 people are employed in the SSC sector. In 2023, new jobs will be provided by a BPO company from the business support sector, which is characterised by its excellent central location, modern office infrastructure and a range of comprehensive training and know-how for specialists in the Lodz market. We have noticed that, despite the sluggishness at the beginning of the year, from the second quarter until now there has been an upward trend in the demand for employees, especially in the area of customer service and administrative support with foreign languages (German, French, Dutch, Czech and Scandinavian).

Lodz, Poland’s fourth largest city, is a place with huge business potential. In the “fDi” ranking of European cities of the future, Lodz took an impressive sixth place in the category of medium-sized cities. The city has consistently developed its economy along various growth paths. Lodz continues to attract companies from the manufacturing and logistics sectors, offering favourable conditions for the development of these industries. However, the city also aims to become one of the leading cities in Poland, which would be a good location for companies providing modern business services. Lodz’s success is due in part to its central location and outstanding educational potential, and the availability of skilled talent contributes to the city’s attractiveness to investors.

Krzysztof Witkowski

CEO of Virako, Monopoli Investor

Expert commentary

Lodz, for years associated with the textile industry, today draws strength from the diversification of its economy. On the one hand, it continues to attract and support manufacturing companies and those operating in the logistics sector, while on the other, it aspires to be at the forefront of places that are magnets for modern business services and cutting-edge technology.

Why such a change? There are at least two reasons. The first is the high level of education of future employees. Lodz is one of the more important academic centres in Poland. A total of 19 universities, 7 public and 12 non-public, and 30 research and development institutions are located in the city. Annually, nearly 72,000 students study at Lodz universities, including 5,000 international students, and about 17,000 graduates receive their diplomas. Today, business development largely depends on access to talent.

The second reason is the city’s good perception among investors, mainly because it lies close to Warsaw, forming a business duopolis with the capital. Lodz’s advantage over other cities is its strategic location and excellent transportation links to all major cities in the country. In addition, the ongoing infrastructure investments in high-speed rail and the cross-town tunnel will be another step after developing highways, strengthening Lodz’s attractiveness to investors. Developed cultural and entertainment facilities, including Atlas Arena with its range of concerts and the recently opened Orientarium, affect residents’ quality of life by providing a rich offer to spend leisure time and encourage tourists to visit Lodz.

Kamila Woźniakowska

Site Director, Alorica

Expert commentary

In July 2023, we made a strategic investment in Lodz, a key moment in our international growth strategy, which includes the opening of our state-of-the-art site. We considered several locations in Poland when making our decision, but thanks to the business support, professionalism and commitment of the City of Lodz and Invest in Lodz, the decision was simple: to make the city our new home for Alorica Poland.

The combination of our company’s core values – people, passion, performance – with the characteristics of the Polish talent pool cannot be overlooked. For us, Lodz is an aspirational, ambitious and cosmopolitan city that perfectly matches our values. It is not only a business centre, but also a city with global aspirations. With 19 universities in the region, Łódź is the perfect place to support Alorica’s development and help it achieve an ever better position in the world. This investment is more than just economic, it is a partnership that promises benefits for both Alorica and Lodz. As a native of Łódź, I am extremely proud to be part of such a fantastic investment, to lead the Alorica Poland team and to make history together.

On the country’s cultural map, Łódź is a very important destination. The former capital of Polish cinema is capitalising on its enormous creative potential, offering a wide range of attractions and unique events. Locals and visitors alike can look forward to a wide range of concerts by world-class entertainment music stars, prestigious sports competitions, trade fairs and conferences. Thanks to the ever-expanding range of cultural events, Łódź has become known as a city of festivals, with dozens of international events taking place on a regular basis. The citizens of Łódź also appreciate the greenery, recreational activities and public spaces in their city.

Lodz in numbers

• More than 30 city parks and the largest urban forest in Poland – Łagiewnicki Forest
• 2.5 million tourists
• 100 days of festivals in the Atlas Arena
• Łódź awarded “Best of the World” by National Geographic magazine
• 20 museums, including the Museum of the City of Łódź recognised as the Best Tourist Product of 2022