In June 2023, in cooperation with the American Chamber of Commerce (AmCham), SGH published a report titled American Companies in Poland. Capital for Growth and Security, presenting the operations of companies with an American capital share in our country.
The value of American investments in Poland amounts to 26 billion dollars and accounts for 12% of all foreign investments. American companies are the second most important group of foreign investors outstripped only by German enterprises. In recent years there have been new companies mushrooming in business services, logistics and the IT industry. In the years 2010–2021 the dynamics of American investments’ inflow to Poland was 50% higher than that of all foreign investments.
Apart from that, many ventures have been financed with retained profit – such reinvestments, among others, helping develop joint service centres. Total employment in companies with an American capital share adds up to 327 thousand, and one in four of these job openings were created after 2018. Employment is the highest in service firms. Surprisingly, it is not McDonald’s, frequently quoted as the largest employer among American firms, which takes the lead. About 70% of this company’s outlets are franchises, the employment of which is not included in corporate operations.
The ranking of American employers in Poland is topped by the giant Amazon company. Amazon does not offer only jobs in their warehouse services. In Poland it also runs three Technology Development Centres – in Gdańsk, Warsaw and Cracow, where new technologies are being developed for this company. In terms of particular industries, the fastest growing employment is seen in business services. American companies constitute the most numerous group of foreign investors and employers in this industry.
AMERICAN COMPANIES IN POLAND
* data from banks and insurance companies
Source: American investments in Poland – a report by SGH and AmCham
American investments stand out from other foreign investments by having a higher share of industrial production, whereas a majority of foreign firms operating in Poland deal in services and commerce. American companies in Poland allocated their largest investments and assets to the auto-motive and aviation industry.
Poland is an important spot on the map of American business locations in the Central and Eastern Europe. A quarter of all American investments in the CEE region is located in Poland. In some industries Poland has taken over all projects in this part of Europe. For example: in food or metal production.
The industry with the highest number of companies among American firms are software development services, 137 companies operate in this field and it is primarily from Poland that they source highly qualified employees.
STRUCTURE OF THE MAIN TYPES OF OPERATIONS ACCORDING TO ASSET VALUE, REVENUE, INVESTMENTS AND EMPLOYMENT (IN PER CENT)
Source: American investments in Poland – a report by SGH and AmCham
Almost 80% of American investments in Poland are located in four Voivodeships: Mazowieckie, Małopolskie, Podkarpackie and Wielkopolskie. Along with the Śląskie, Łódzkie and Dolnośląskie Voivodeship this group covers over 97% of American investments in Poland. The highest capital concentration can be seen in the Central, Southern and South-Western regions.
Employment in American companies in Poland is much less concentrated than investments, assets or revenue. Over one third of job places are found in the Mazowieckie Voivodeship, twice as many in the Wielkopolskie, Małopolskie and Dolnośląskie Voivodeship.
The flow of American capital to Poland will be encouraged by the much needed energy transformation, and many of the investors will be companies offering technologies for alternative energy sources (hydrogen, nuclear energy) and energy storage methods.
Apart from this, investments in IT and business services will keep flowing in, as Poland continues to maintain its advantage in terms of the labour market, even though currently investors tend to pay more attention to the employee availability and qualifications than cost.
Present value of the American capital in Poland accounts for a mere 0.65% of all investments by US entities in Europe which is viewed as the most important place for locating the business of American companies.There are four times more American investments in Europe than in Asia. Thus, it may be expected that in the future Poland will remain a vital market for American firms, and their engagement in the CEE region will grow as a result of the US implementing a strategy of preventing China’s domination through developing transatlantic cooperation and replacing Asian manufacturers and suppliers with European and Polish providers. A new term of “friendshoring” has been coined in the context of American investments in Europe and Poland.
Moreover, after the war in Ukraine ends, we will be able to tap into the reconstruction capital flows, as due to corruption concerns these funds will rarely be streamed directly to Ukraine. The “frontline” investments may thus establish a safe foothold in Poland.
DR HAB. ELIZA PRZEŹDZIECKA, prof. SGH, Director of the Institute of International Economics, SGH Collegium of the World Economy
