September 6, 2013

Budapest vs. Eastern Hungary: a brief comparison of manufacturing locations

Budapest, the capital city of Hungary, is one of the most relevant manufacturing locations of Europe. What key differences are there between Eastern Hungary and Budapest as manufacturing sites?

4 facts about Eastern Hungary. Graphics: Manufacturing Hungary Blog

#1: Labour pool
Budapest has a metropolitan area over 2.5 million inhabitants, the 3 Eastern Hungarian regions have 4 million inhabitants. Regarding the number of job seekers, Budapest and Central Hungarian Region had 130k job seekers at the beginning of 2013, while Eastern Hungary had 219k - the 46% of the total (476k) job seekers in Hungary. The number of vocationally trained Eastern Hungarian job seekers is 68k. A last data about the hugh labour reserves of Eastern Hungary: one little town and its 20 km vicinity, Hajduboszormeny has 25k job seekers, which can be compared to the 33k job seekers in an entire region: Western Transdanubia.

#2: Labour costs
The average gross monthly earnings of employees was 260,000 HUF (approx. 870€) in Budapest in 2011, while in Eastern Hungary it was between 170-181,000 HUF (570-600€). It means, Eastern Hungary provides 30% labour cost discount compared to Budapest.

#3: Real estate market
Eastern Hungary has 95 industrial parks (more, than Poland), however there is a significant lack in existing and relatively new manufacturing and logistics halls. The M0 motorway is not just a bypass around Budapest, but the location of several business parks. The 3 million sq.meter industrial and logistics space ranks Budapest real estate market to the top of Hungary and Central and Eastern Europe.

#4: Accessibility
Two motorways, the M3 (and M30, M35) and the M5 (and M43) ensures a stable and first-class road connection between Eastern Hungary and Europe (practicly: Budapest, because in Hungary, all roads lead to Budapest). The 600 km motorways network in Eastern Hungary is longer than the motorways system of entire Slovakia, and two times longer than Romania has. Regarding air accessibility, the Budapest Airport is one of the main hubs of Europe. The developments of Debrecen International Airport has started later, it has some international destinations.

Finally, a 2-minutes video about GE Lighting Hungary, which HQs are in Budapest - but one of the major manufacturing plant in Hajduboszormeny, Eastern Hungary:

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