2023 Outlook │Romanian workforce market, trends, challenges, opportunities
▪ Opportunities and challenges of the current socio-economic context
• The accelerated increase of energy prices, but also in the current conflict in Ukraine context, are leaders forced to adopt an austerity plan?
• Educating the workforce: programs created by private companies for employees and students to learn new skills. Is this enough to cover the growing needs of the private sector in terms of workforce?
• What are the top employers’ foreseeable future plans?
• Legal updates, regulations & norms
• In Romania, the latest August data is showing a slight decrease in the unemployment rate to 5.1%. The EU average is at 6% but not all countries are having these low figures. In Spain and Greece unemployment is over 12% and in Italy and France it is over 7%.

Women In Business • Gender Equality • Diversity • Inclusion

A recent study carried out in USA shows that attracting and retaining talents is among the top risks identified by business leaders, in second place after cyber-attacks. However, a global rebalancing of the labor market is in sight: companies are investing in automation and becoming more selective in the recruitment process.

• Attracting and retaining skilled labour force is one of the biggest investment barriers in Romania.
• Flexibility remains a priority: companies want to increase the physical presence in the office, but they face resistance from employees
• New skills development, leadership and employer branding programs – are the primary focus for companies
• How the cost of living crisis is likely to impact employees, work patterns and business operations, the much hoped for return to normality?

▪ Best Working Place in Romania
▪ Best Health & Wellbeing Program
▪ Best Professional Development Program
▪ Best Teamwork Culture
▪ Best Educational Program
▪ #HRSpotlight Manager of the Year

From old and polluting industries to fast growing unsustainable urban communities, from old auto parks to lack of waste management, from deforestation and wildlife aggressions to fossil-based energy, Romania and SEE countries still are far behind developed European countries in environment and sustainability policies and projects. We see small initiatives, projects going forward, but we also see infringements on coal energy production, waste management or river pollution management. Now it is a good time to move forward to a better future. We can fully benefit now from the western successful models, funding opportunities from European institutions and, very important, we do have smart and willing to do people.

Water is the largest natural resource but only 3% of it is freshwater, of which just 1/3 is accessible for use in agriculture and urbanization. Water is at the core of sustainable development and is critical for socio-economic development, healthy ecosystems and for human survival itself. Agriculture is by far the thirstiest consumer of water globally, accounting for 70% of water withdrawals worldwide. Presently, over 80% of wastewater is discharged without treatment. Based on populations grow and countries development, global water demand (in terms of withdrawals) is projected to increase by 55% by 2050.

Urban developments are responsible for 75% of global CO2 emissions, rising temperatures, water pollution and waste. Transport is accounting for around a fifth of all global CO2 emission and the way in which the people and industries will keep moving is also very important in efforts to tackle climate change.

Increasing costs of energy along with other raw materials puts a lot of pressure on the sector. The announced major investments in renewable energy projects are facing difficulties, but small, private, or local projects are “forced” to move forward.

Awareness to climate changes effects has increased drastically as result of Covid-19 pandemic. Consumers are demanding more sustainable long-lasting products, without sacrificing on price or quality. Products need to fit sustainability standards to match with consumers expectations. Companies are increasingly looking to organic resources that are renewable, sustainably managed, recovered and reused as much as part of their solution to addressing their environmental impacts.

• Moving from Cities to Suburbs: Mixed-use projects are becoming true cities-within-cities (or just outside)
• Home Prices Continue to Rise: delivery vs. absorption rates
• Return to the Office: Ocuppancy rates, forecasts, and adapting to hybrid work
• The importance of ESG and Green Certifications

• Industrial Real Estate: can it keep its upward trend?
• Revamping the Supply Chain
• Romania, a regional hub for e-commerce
• Constanta, the new industrial hotspot of the Black Sea
• Intermodal hubs, a key component for the industrial & logistic sectors
• ESG in the Industrial Segment and its impact on long term investments
• Construction Cost, Land availability, new places to be

The commercial real estate industry is continuing its post-pandemic recovery and is adapting to the emerging demands of tenants and Romanians that are seeking a new experience for shopping, living and working.

On this backdrop, Business Review launches this year’s real state supplement to present main developments on the market in the second semester of 2022 and to gauge the potential of the property sector for the first half of 2023. The property sector is on track to generate more than EUR 1 billion worth of investment transactions this year, with offices and industrial assets set to drive deal making.

The exclusive features cover the evolution of the office, industrial, retail and residential sectors, while also analyzing the factors that shape the industry, ranging from fiscal and legal provisions, to innovation in technology.

Business Review’s Readers’ Choice Realty Awards are taking a step back from the usual “Editors’ choice” format and focus on the Vox Populi of the BR readership and social media community. By looking at the best performing companies in the Romanian real estate sector through this lens, Business Review will determine, according to the metrics of the news articles, stories, analyses, profiles, or interviews from the last 12 months, what are the most remarkable accomplishments in the industry and who are the people behind them!

Highlights:
• The impact of adopting reduced VAT rates in Romania
• Internal Fraud vs Tax Evasion
• Investments and state-owned companies, relationship with foreign companies, investments in Romania
• How does NAFA intend to minimise the VAT Gap: SAF-T, RO e-invoice & RO e-transport
• Indirect taxes: best practices on improving collection levels
• The VAT E-commerce package: adjust indirect taxation to the new realities and technologies
• Fighting undeclared and “gray” work
• Tax exemptions and other benefits for the relocation of businesses from Ukraine, Russia, or Belarus to Romania
• Digitalization and Simplification Measures in the Fiscal Procedure Code

Highlights:
• State-aid schemes in 2022
• Restructuring & insolvencies: Solutions for businesses that face financial difficulties
• The rebound of the Romanian M&A market
• The recent push for digitalization makes cybersecurity paramount
• Cyber defense in the new reality of the financial sector
• What do we need to know about the Government cloud project? A 360 perspective: a debate between tech leaders, IT specialists, consultants, and public officials
• Creating a national AI strategy
• PNRR grants for tech projects: digitalization, data, cloud, blockchain, AI, IT, cybersecurity, Internet of Things (IoT), and more
• Digital assets: how long until they will replace traditional currencies?
• How active was the Romanian IPO market in the past 12 months?
• Understanding the tax and legal aspects of remote work and the 4-day work week
• Understanding the temporary protection mechanism for citizens coming from Ukraine
• Corporate integrity: what do Romanian employees and business leaders expect from their companies

New Ways of Working: Get Inspired by the Best

• Challenges, trends and strategies that are revolutionizing eCommerce and omnichannel
• Future Payment Methods in eCommerce
• Creating personalized online shopping experiences
• Customer Centricity: The customer is everything and all operations, practices and deliveries must be centered around value
• With the eCommerce opportunity growing fast, multi-channel transforms operations to fit in line with shifts in b2b and b2c norms of the future
• Using tools to identify customer behaviors to offer personalized recommendations and experiences
• How courier companies have adapted in order to keep the supply chain uninterrupted
• Investments in the development and modernisation of courier hubs
• Digitalization of courier companies: chatbots, PDAs, "Predictability" projects, mPOS
• The future of the courier industry: complete fulfillment services
• How do courier companies approach sustainability?

• Reinventing retail and reconnecting with customers
• Building broader, more dynamic shopping experiences
• Bridging the gap between offline and online
• Classic retailers’ rapid adaptation and transition to a new, digital, reality
• Logistics Meet Innovation: views and insights on the challenges and trends faced by the logistics industry
• Transport and logistics companies in the spotlight: growth opportunities
• New technologies to engage offline customers; bringing in-store digital experiences
• Health and safety standards in industrial spaces
• Alternatives to classic warehousing
• Innovations in Digital Payment Methods: from cloud to mobile point-of-sale (mPOS)

• Retail & logistics’ biggest challenge of 2022: implementing the Deposit Return System
• A challenge or an opportunity? The DRS has been described as an effective instrument towards a circular economy, but how prepared are producers, retailers, distributors, and authorities to create a functional Deposit Return System?
• What are the rules of this new game and who makes them? Who will manage the system?
• What are the costs of adopting the system?
• “The system will only work if all producers are fully involved, all retailers, all distributors and - most importantly - all citizens are involved and contribute to its success.” Barna Tánczos, Minister of Environment, Water and Forests. Will everyone get on board, from producers to consumers, and from authorities to retailers & distributors?
• The Minister’s goal in the first year is a recovery rate of 65%, followed by a target of 85-95% in the third year. How realistic are these numbers?
• Reimbursement of the deposit, cash, credit card, vouchers, or tokens? How will it work in practice?
• How will consumers react to the DRS and how to improve awareness towards this issue?