Business news from Ukraine


30 August , 2022  

Ukrainian industry is one of the sectors of the economy most affected by the war. Since February 24, many large enterprises, primarily in the east and south of the country, have lost their production capacities, and the staff was forced to evacuate. At the same time, individual production facilities were transferred to the western regions, where they are being restored on the basis of more modern industrial facilities, such as industrial parks that appeared shortly before the war.

The Open4business portal spoke about the future of Ukrainian industry and the prospects for the restoration of production with Igor Stakovychenko, an expert in the field of economics.

According to the expert, the production of goods with high added value should become a priority for the development of the economy for decades to come.

“Before the aggression, our industry worked mainly according to standards that were not particularly modernized in 30 years of independence. This is the so-called canonical model, when you have raw materials, workshops, shipping, logistics, and so on. And there must also be stable consumers who will always buy products. Many plants with such a system failed the market test and closed down. Mostly giants remained, who more or less adapted. After the war, it will definitely not be possible to rebuild production in the same form, a fundamentally new model is needed, ”Igor Stakovichenko is sure.

The expert noted that in the modern world, the modernization of production involves the introduction of new management methods, as well as the creation of more adaptive sites, such as industrial zones or parks.

“If you have a workshop for the production of one specific part, which is itself part of a complex and long chain for creating the final product, then the situation above is rather precarious in modern conditions since you depend on many factors: suppliers, market situation, current conjuncture. If you have, for example, a 3D printer that can produce any shape to order for a specific client, then the situation is more stable for you, since you can quickly reorient yourself when the market changes. In the modern world, the industry is striving for greater universalization,” explained Igor Stakovichenko.

According to him, the restoration of the industry should begin now and be based, firstly, on the creation of industrial parks in safe regions, and secondly, on the modernization of existing industries for new models. As an example, Stakovichenko cites the development of this concept in Poland or the Czech Republic, where industrial zones already provide up to 50% of GDP.

“The government is now acting in the right direction, providing tax incentives to such industrial zones, this will lay the foundation for the rapid restoration of the country’s industrial potential in the post-war period,” Stakovichenko summed up.

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