For many years, the country's Atlantic location was presented as a disadvantage: we were far from the European industrial centre, we did not have the scale of the large economies, and we would hardly be able to compete with the cheaper production markets. Today, however, companies no longer choose a country just because of the cost of labour. They increasingly value stability, energy security, the quality of infrastructure, proximity to consumers and the ability to withstand logistical and geopolitical crises.

It is precisely this transformation that Savills' study of the new geography of production helps to understand. Globalisation is not ending, but it is changing shape. After the pandemic, disruptions in supply chains and increased international tensions, many companies have begun to reduce dependence on production centres that are too far away. Instead of concentrating all production in the cheapest markets, they seek to distribute operations in countries that are nearby, safe and integrated into their main economic areas. It is in this nearshoring movement that Portugal comes up with increasingly relevant arguments.

The country brings together political and institutional stability, access to the European market, privileged connection to the Atlantic, ports with strategic potential, growing renewable energy production capacity and new digital infrastructure. Sines is perhaps the most evident example of this combination. The port, energy projects, data centres and submarine cables that connect Portugal to other continents show that our geographical position can no longer be understood as distance and starts to represent connectivity. Portugal is not only on the edge of Europe. It is also at the meeting point between Europe, Africa and the Americas.

This change is particularly positive because it allows the country to compete for factors that go beyond low wages. For decades, much of our strategy for attracting investment has been based on cost. But there will always be markets capable of producing cheaper. The real Portuguese advantage must be in trust: the ability to guarantee energy, talent, security, logistical access and stability in an increasingly unpredictable world. This can attract technological industry, higher value-added production, advanced logistics and activities linked to the energy and digital transitions.

The Savills study suggests, therefore, that Portugal already has the conditions to benefit from the new organisation of production chains. But a good position in an international index does not guarantee results. To turn this opportunity into growth, skilled employment and better wages, the country will need to speed up licensing, strengthen energy networks, improve rail and port connections, train professionals and reduce administrative slowdowns.

Portugal may finally be in the right place of the new economy. The risk is to continue to respond with the old speed to opportunities that are now decided very quickly. This time, our size may not be the main obstacle. The real test will be the ability to perform.