The Czech Republic ranked seventh out of 54 countries in the Savills Nearshoring Index 2026, while also securing fourth place in Europe. The Index assesses the attractiveness of countries for manufacturing companies seeking to relocate production closer to consumers (nearshoring) and diversify their supply chains in response to economic and geopolitical uncertainty. Ahead of the Czech Republic in the overall ranking were Canada, Japan, Taiwan, Austria, the United Kingdom and Portugal.
Ondřej Míček, Head of Industrial Agency at Savills, says: “Thanks to its strategic location in the heart of Europe, strong industrial tradition, high-quality infrastructure and well-developed logistics market, the Czech Republic remains one of the most attractive destinations for manufacturing and distribution operations within the CEE region.”
Within Europe, Austria ranks first due to its central geographic location, highly skilled workforce and strong performance in resilience to economic and geopolitical risks, as well as ESG credentials. Portugal and the United Kingdom follow in second and third place, while the Czech Republic ranks fourth. According to Ondřej Míček, the Czech Republic’s position is further strengthened by the growth of future-oriented industrial sectors: “Alongside the traditional automotive industry, we are also seeing increasing activity in advanced manufacturing, e-commerce, defence, technology and data infrastructure sectors.” European economies perform strongly across all four pillars of the Index. One of the region’s key competitive advantages is access to the European Union single market, the world’s largest unified market.
“At the same time, occupier requirements are evolving. Beyond cost efficiency, companies are increasingly prioritising operational flexibility, ESG standards, energy availability and long-term business resilience. We therefore expect the nearshoring trend to continue shaping demand for industrial and logistics real estate across the region in the years ahead,” adds Ondřej Míček.
In the Americas, Canada and Mexico secured the leading positions, largely due to their strong access to the U.S. market, which has become increasingly important amid uncertainty surrounding trade policies and tariffs. Across APAC, both developed and emerging economies delivered strong performances, including Japan, Vietnam and China. The Index confirms that China continues to rank among the world’s leading manufacturing powerhouses.
Connor Chilton, Associate in Savills World Research, comments: “In the current macro and geopolitical climate, location is an incredibly complex decision for global manufacturing firms. Decisions aren’t just driven by a desire to minimise costs, but major considerations such as resilience, energy security and policy environments, alongside labour availability, rents, and access to consumers. Many of these factors pull in opposite directions, so those locations that top our Nearshoring Index tend to be those that manage to strike a balance between all these factors.”
Savills also highlights that location plays a key role from an inventory management perspective. Many companies are moving away from a “just-in-time” strategy, focused primarily on cost minimisation, towards a more resilient “just-in-case” model, which involves keeping higher inventory levels closer to end consumers. In recent years, this trend has significantly contributed to rising demand for warehouse and logistics space.
The Savills Nearshoring Index 2026 ranks 54 countries on the factors that are important to occupiers looking for new locations to shorten or diversify their supply chains and/or reduce their reliance on imports. These factors include resilience, economics, business environment and ESG performance. The Index is positively correlated with economic development, with higher-income economies generally scoring near the top.
