Survey: a third of businesses are planning to grow in the Vilnius region
A representative survey of businesses in the Vilnius region has revealed that, despite the economic challenges and the ongoing geopolitical tensions, business organisations in Vilnius city and district are moderately optimistic about the coming years. A majority of them expect their business volumes to remain similar to their current state in the years to come, while more than a third plan to expand.
Plans to grow or maintain existing business volumes
A survey commissioned by Urban HUB, an SBA Group company that is currently developing stock-office projects in Vilnius and Kaunas, has shown that businesses in the Vilnius region are planning intensive or moderate expansion, and that only a small fraction of them believe that their business volumes will decrease in the coming years.
“Even in the face of increased uncertainties and tensions, businesses in the Vilnius region are showing resilience, and most have no intention of slowing down. Survey data shows that more than a third of businesses plan to expand in the next 12 months more or less. Almost 10% of managers have indicated that they are planning intensive double-digit growth, while 23% of the companies surveyed are planning more moderate growth. Only 3% of businesses forecast a decline in their business volumes, while the rest plan to maintain the same” says Giedrius Muliuolis, CEO of Urban HUB.
According to him, when talking to those businesses interested in the expansion in Urban HUB project in Vilnius, a large number of them show that they are planning to invest in development in order to gain a larger share of the market during the economic slowdown while at the same time hoping that the negative mood in the economy won’t durate and withc that the market itself will grow in the long run.
The most optimism seen in commercial businesses
According to the survey, the highest number of those planning to expand are in trade businesses. In this sector, almost 38% of companies in the Vilnius region have plans to grow.
In the services sector, one in three (33%) companies providing physical services and more than one in four (27%) providing intellectual services have plans to grow. When it comes to manufacturing firms, 28% expect to expand, with two-thirds expecting double-digit growth.
According to the survey, when viewing the statistics for the most intensive companies in terms of expansion, those coming out on top are medium-sized companies with 51-100 employees and large companies with more than 250 employees.
A business calculate its costs rationally
Regarding the most important factors influencing business development, 86% of all respondents indicated that the general economic situation is the thing that will have the biggest impact on their plans in the coming years. The survey showed that energy costs and raw material prices will continue to have a significant impact on business, with almost half (42%) of respondents citing energy costs as another reason that influences the decision for expansion. However, the latter is more often cited by manufacturing companies.
“The survey revealed that more than a quarter (27%) of companies consider the cost of maintaining the premises to be a major factor in their decision to expand, which is as important as rising interest rates (according to 26%). Businesses rationally calculate and evaluate opportunities to move to more modern and cost-effective facilities, while some businesses, when relocating or expanding, take the opportunity to optimise and centralise business units scattered in several locations”, said G. Muliuolis.
Most businesses planning to expand in the Vilnius region intend to open more new retail spaces and offices in the coming years (32%), while 22% intend to relocate to areas offering larger office, warehouse or production spaces.
A representative survey of businesses was conducted in September by the market and public opinion research company Spinter Research on behalf of Urban HUB. The survey questioned 206 managers, owners or senior managers of companies in the city of Vilnius and the adjacent district.
