Installation of elevators in Russia has halved
Quick Look
- According to the Russian Elevator Association, in the first three quarters the volume of installation of elevators in the Russian Federation fell by 49%, amounting to 18.3 thousand units.
- The main reasons were the decline in housing construction and increased competition from manufacturers from China and Belarus.
AI-generated summary
Why It Matters
Russian elevator companies are facing falling demand amid a slowdown in housing construction.
Based on the results of the first three quarters, the volume of installed elevators throughout Russia decreased by almost half, by 49 percent, to 18.3 thousand units. Kommersant writes about this with reference to data from the Russian Elevator Association (RLO).
At the Shcherbinsky Elevator Plant the drop was 50 percent (3.3 thousand), at Meteor Lift - 63 percent (1.4 thousand), at the Karacharovsky Mechanical Plant (KMZ) -15 percent (3.3 thousand), at MEL - 45 percent (1 thousand), at the Serpukhov Elevator Plant -65 percent (358 lifts).
RLO General Director Petr Kharlamov explained that the main reason for this dynamics was the decline in housing construction. Deputy General Director of the Serpukhov Elevator Plant Alexey Grigoriev confirmed that effective demand for equipment has collapsed.
Dmitry Arestov, project manager of the Engineering practice at Strategy Partners, notes that the capacity of elevator builders in Russia has never been used to its full potential, but such a collapse is fraught with a whole range of consequences. In addition to financial losses, there may be hidden risks associated with increased costs due to downtime.
A separate problem was competition from Belarusian and Chinese manufacturers. Due to rising costs for metal, electricity and logistics for Russian companies, Chinese manufacturers can set significantly lower prices.
Open Questions
- How will industry indicators change at the end of the full year?
- Will state support measures be taken for elevator builders?
