Study: The 20-29 age group decreased by 33.6 percent between 1990 and 2018

In the context of a major drop of Romania’s active population during 1990-2018, the workforce availability as well as access to public transportation are critical factors for developing industrial hubs. According to a study done by the Academy of Economic Studies at the request of Element Industrial, the age groups of 20-29 and 30-39 years old have registered a decrease of 33.6 percent and 19.6 percent respectively, while the over 70s group has registered a growth of 64.9 percent during 1990-2018.

“Besides the important criterion of finalized infrastructure investments, we chose the area of Chitila – Buftea as a development hub due to comparative workforce availability and, very importantly, public transportation on site, which facilitates the employees’ access to the park”, said Muler Onofrei, Managing Partner, Element Industrial. “We are convinced the area has potential, we are satisfied with the progress of negotiation for the leasing of phase 1 and we have decided to start construction works for second phase during this summer.”

“The current statistics in the study show that, in addition to the large number of Romanians leaving for other countries, low birth rates, the lack of vocational schools and the inadequacy of education to economic change are the main causes for which Romania is experiencing an acute labor force crisis”, said Ion Anghel, Head of Analysis and Valuation Department within the Academy of Economic Studies, adding: “In the case of logistic parks from the localities neighboring Bucharest, employers are offering an attendance bonus to employees who work all five working days of the week.”

Element Industrial intends to develop a portfolio of logistic parks in Bucharest and main cities in the country, first of which is ELI PARK 1, an industrial park of 45,000 sq. m GLA, located in Chitila – Buftea, which is transforming in a new proximity logistic hub for Bucharest. The first construction phase, totaling 20,000 sqm, is on schedule and will be delivered this summer. The logistic project is served by several public transport lines and is located at a distance of 4 km from the Bucharest ring road, with direct access to a national road with four lanes, DN 7. The main advantages are easy access to northern Bucharest and the location in an area with workforce surplus, (Chitila / Buftea) as opposed to other classical logistics areas where there are problems in this respect, such as A1 – km 14 or 23. The new project is designed and executed following class A international standards, with characteristics such as one loading bay for each 800 sq. m. of warehouse, generous 35 meters truck court and numerous parking places.

Element Industrial plans to develop a portfolio of industrial projects in Bucharest and main regional cities. It also offers turnkey solutions for occupiers interested to lease or to own built to suit facilities in various locations. Due to an extensive local network of construction and real estate experts the company can efficiently manage the process of sourcing lands, designing and building facilities in a seamless experience for the client.