The role of the construction industry in the recovery of processing enterprises during the crisis

Abstract

The article discusses the consequences of the crisis period for the work of processing enterprises in Ukraine. It is established that hostilities on the territory of our state and general instability lead to a decrease in production and force processing enterprises to cease their activities. Many enterprises are experiencing serious financial difficulties due to work restrictions, problems with the supply of raw materials, and the loss of industrial facilities. In the summer of 2022, the percentage of companies that closed or were in the process of ceasing operations was 46.8 %. A significant consequence of the war for the Ukrainian economy at the moment is the rapid changes in the territorial location and the change in the symmetry of the processing industry of Ukraine. The war also affected the sectoral structure of the processing industry, producing significant shifts and changes in the volume of products sold. The current political situation in Ukraine and the severance of business chains with the temporarily occupied territories require processing enterprises to search for new markets for products, sources of supply of raw materials, change logistics links, increase the production of raw materials and their own products. During the study, it was found that certain key aspects of the impact on the activities of processing enterprises were previously insufficiently studied. It is determined that the construction industry is of critical importance for the processing industry of the State during the crisis, which is designed to contribute to the recovery of this industry: to develop infrastructure, to build and modernize production facilities, which allows to introduce new technologies and optimize production processes, to improve the conditions of production itself, to build energy facilities to provide processing enterprises with stable and affordable energy supply, to apply modern construction technologies that will create environmentally friendly and energy-efficient production. For the restoration and development of the processing industry of Ukraine, taking into account the impact of the construction industry, we propose to apply the following measures: widespread implementation of the enterprise relocation program with the expansion of state support; the use of state programs for the reconstruction of property and lending, the development of international communications and the European vector for the recovery of the post-war industry based on the ESG concept and the principles of building back better, compliance with the principles of energy efficiency and energy saving, and the application of decarbonization measures. These tools are designed to provide stimulating processes in the processing industry to achieve and exceed the prewar level of the volume of competitive and high-quality products. The development of the construction industry plays an important role in the restoration of processing enterprises in Ukraine, so it is important to create favorable conditions for their cooperation, to develop comprehensive development strategies aimed at ensuring sustainable economic growth and support.