Romania can be an attractive location for DACH companies seeking additional production, assembly or logistics capacity. A low national average for labour costs is not sufficient as a stand‑alone investment reason. The decisive question is not whether Romania is cheap – but whether the specific process fits a concrete site under realistic conditions.
It is the process, not the country, that matters first
Location decisions often start with a country comparison. Wages, taxes, land prices or incentive options are then placed side by side. These figures are important, but they say little about whether an operation can start up stably.
At the outset there should therefore be a clearly described project: Which product family or which work step is to be built? Which volumes and takt times are planned? Which quality requirements apply? Which qualifications are needed? How frequently must materials and finished goods be transported? And how much time is available before stable operation can be achieved?
Only once these questions are answered can regions, properties and implementation models be compared sensibly.
The cost advantage is relevant – but not static
Eurostat estimates the average hourly labour cost in Romania for the whole economy in 2025 at €13.60. The European Union average was €34.90. At the same time, labour costs in Romania rose by 10.6 % in national currency in 2025 compared with the previous year.
Both figures show that Romania still enjoys a clear cost advantage in the European comparison. However, this advantage is neither the same for every activity nor for every region – and it changes over time. National averages therefore do not replace a concrete calculation for roles, shift models, productivity, turnover and recruitment.
A robust calculation must also include property, energy, logistics, quality assurance, management, training, financing, start‑up losses and reserves. What matters are total location costs over several years, not just the monthly gross wage.
When Romania can be a good fit
1. The process is clearly delineable
A suitable entry point can be described and measured operationally. This might be a product family, sub‑assembly production, pre‑assembly, pilot line, additional shift or storage capacity. The clearer the quantities, quality metrics and responsibilities are defined, the better personnel needs, investment and ramp‑up can be planned.
2. The supply chain tolerates planned transport times
Romania is not a substitute for a site right next to every DACH customer. Processes whose material and delivery flows can be bundled and organised with a sufficient time window are well suited. Processes that require permanent special trips, extremely small batches or very short reaction times are more difficult.
Romania has been fully part of the Schengen area since 1 January 2025; internal border checks have been lifted. This facilitates mobility and trade, but it is no guarantee of fixed truck transit times. Traffic, road works, driving‑time limits, temporary controls and the exact route remain part of the logistics calculation.
3. Personnel needs and catchment area match
Labour is not a uniform national resource. Availability and wage bands differ by county, city, qualification, shift model and commuting radius. A cheap hall can be unsuitable if, for example, welders, CNC specialists, maintenance staff, quality employees or experienced managers are not available in sufficient numbers.
The personnel assessment should therefore start before the property decision: required roles, numbers, start date, shifts, market‑aligned remuneration package, training needs and existing competition for the same profiles.
4. Local leadership is taken seriously
A new site needs more than a legal entity and a hall. It requires clear decision pathways, local responsibility, reliable personnel management and a robust interface to the headquarters. Those who try to run the build exclusively from a distance usually underestimate the coordination effort required during the start‑up phase.
5. The investment horizon is realistic
Recruiting, training, permits, hall adaptation, machine installation, supplier approvals and quality stabilisation all take time. Short‑term savings targets increase the risk of under‑estimating start‑up costs and temporary productivity losses.
When Romania may not be the right solution
A responsible location check must also be able to lead to a “no”. The project becomes critical, in particular, when:
- the process cannot be cleanly separated from the parent plant,
- extremely short reaction times to DACH customers are mandatory,
- transport costs or special trips erode the labour‑cost advantage,
- rare qualifications are sought in a catchment area that is too small,
- energy or grid requirements at the specific site are not secured,
- local leadership and management capacity for the ramp‑up are missing, or
- the decision relies almost exclusively on an average wage figure.
In such cases, automation at the existing site, a nearer location, a Romanian manufacturing partner or a smaller pilot may be the better alternative.
Own site, partner or pilot?
An own site offers high control over quality, personnel, processes and capacity. Consequently, investment, management and ramp‑up effort are larger. It is more appropriate for sustained volume and strategically important value creation.
A local manufacturing partner can enable a quicker market test and lower initial investment. However, capacity access, quality systems, know‑how protection, dependencies and contracts must be examined carefully.
A pilot line or a clearly defined sub‑process limits initial complexity. Companies can test quality, productivity, recruitment and logistics under real conditions. Good pilot projects have measurable goals and pre‑defined criteria for expansion, adaptation or termination.
Which region fits?
The region derives from the process – not from personal proximity or the lowest property price.
- West and north‑west Romania can be interesting when truck connections to Austria and Germany are particularly important.
- Central Romania may be relevant for industrial competencies, technical profiles and links to several parts of the country.
- Bucharest‑Ploiești offers a large labour and services market as well as international connectivity.
- The south and south‑west can be suitable for supply chains towards the Balkans, Bulgaria, Serbia or Turkey.
- Constanța should be examined when a port, container flows or Black Sea connections play a central role.
These profiles are a pre‑selection, not a site recommendation. Within the same region, two cities can differ markedly in terms of personnel, network access, space and expandability.
Seven criteria for a robust decision
- Process fit: Which products, work steps and volumes are to be built?
- Total cost: How do personnel, property, energy, logistics, quality and management evolve?
- Personnel: Which roles are needed, when and in which shift model?
- Logistics: Which lead times, frequencies and disruption risks are acceptable?
- Infrastructure: Are hall, energy, water, wastewater, data connectivity and expandability secured?
- Implementation: Who coordinates partners, authorities, recruitment, transport, construction and commissioning?
- Ramp‑up: How much time and reserve exist until stable quality and productivity are achieved?
Conclusion: Romania is an option, not an automatic solution
Romania can be a convincing addition to the location portfolio of DACH companies. It is especially interesting for clearly delineable production, assembly or logistics processes with predictable transport, realistic personnel build‑up and local leadership.
A blanket recommendation would nevertheless be irresponsible. Only the combination of process, total cost, personnel, logistics, infrastructure and implementation capability yields a robust answer.
Sources
- Eurostat: Hourly labour costs, data 2025, extracted on 31.03.2026
- European Commission: Country Report Romania 2026, published on 03.06.2026
- European Commission, DG HOME: Bulgaria and Romania join the Schengen Area, 03.01.2025
- OECD: Reviews of Labour Market and Social Policies: Romania 2025