Automotive and Electronics Industries: The Pillars of Slovakia’s Economy, Powered by Logistics
Industrial production accounts for one-third of Slovakia's GDP, one of the highest percentages among European Union countries. The pillars of the Slovak economy are the automotive and electronics sectors. The country is one of the world's largest car manufacturers per capita, hosting factories of major automotive giants such as Volkswagen, Kia, PSA Peugeot Citroën, and Jaguar Land Rover. In addition, the field of electromobility-related manufacturing is also developing in Slovakia, as exemplified by InnBat’s presence (electric batteries producer). Volvo electric cars plant is also currently under construction. The facility is eventually expected to produce 250,000 vehicles a year. In the electronics sector, notable international players like Siemens and Samsung are located here. Additionally, the chemical, metallurgical, and electric power industries are also important to Slovakia's economy.
The high share of industrial production in GDP makes Slovakia highly dependent on exports of manufactured goods and imports of raw materials and production components. Slovakia's main trading partners, both for exports and imports, are European countries, including Germany, the Czech Republic, Poland, Hungary and Austria.
This overview of the Slovak market shows that the TSL sector is also crucial for its economy. The size of freight and logistics market in the country is currently estimated at $3.02 billion and not surprisingly, it is forecasted to grow significantly, up to $4.18 billion by 2029. Comprehensive logistics support is essential for efficient import, export, and production. As a result, there is a high demand for road transportation for both international trade and local market distribution. Furthermore, an increasing number of companies are turning to intermodal transport, where rail is used for cross-European shipments over long distances. This method allows for the transport of large volumes and dimensions simultaneously, which is extremely important for industrial entities that handle commodities such as steel. Intermodal service offers greater security because a one cargo unit, intermodal container or semi-trailer is used throughout the supply chain, significantly reducing the possibility of damage to goods during transshipment at terminals. Additionally, intermodal transportation is already enabling the development of increasingly low-emission supply chains, which is an important reason for companies to choose this service.
The transportation aspect is not the only important factor. We are also seeing a growing demand for contract logistics. The industry needs logistics centers that can serve as warehouses for production materials, warehouses for finished goods, and distribution centers. This is why we opened our first facility in Bratislava, which can function as both a logistics warehouse and a transshipment terminal. It is located near the D1 highway, which connects Slovakia with the Czech Republic, Poland, Hungary and Austria. It serves as a logistics hub for the local market and for commercial exchange with Slovakia's main trading partners.
Expert: Michal Sisolak, Branch Director at Rohlig SUUS Logistics Slovakia