Future of Metalwork Market: Hoping for State Order and Retail

Metalwork has significantly simplified builders’ labour: lower weight comparing to other construction materials, quick installation, and durability — these are advantages of this construction material.

Demand for construction metalwork in Russia has only been increasing in recent years — in line with development of “construction of the century”. Meanwhile, the main image project of Russia of the recent years, Olympic Games 2014, is over, which could not but have impact on the market of construction materials, on the whole, and that of metalwork, in particular. As early as 2013, according to official statistics, the production volume of prefabricated metalwork of aluminum and its alloys decreased by 12%, comparing to the previous year — up to 27.4 thousand tons, while import volumes decreased at least by 7%. Among large suppliers of prefabricated building structures in 2013 there were such countries as Finland, China and Lithuania.

Meanwhile, main consumers of building structures — construction industry — in 2013 show a decrease in growth rates, and even a significant reduction in some segments. For example, comparing to the previous year, the total area of industrial buildings decreased by 28%, while that of commissioned agricultural buildings decreased by 34%. However, the segment of business and retail as well as commercial and recreational real-estate, which actively use metalwork, demonstrate positive dynamics. For example, twice as many business and retail centres and 1.3 times as many commercial and recreational centres were built in 2013 than in 2012.

Instability of construction market is caused by the macroeconomic situation in Russia. However, one should not forget that Russia has already started preparations for new sporting construction works — World Football Championship 2018. In accordance with the organizers’ plans, by this time eight international-level stadiums are to be built and “Luzhniki” stadium is to be reconstructed in Russia. Besides, construction of large facilities according to plans of Spetzstroy of Russia and Rosatom has already been announced and started, including construction of Leningrad Nuclear Power Plant-2, three aerodromes, Baltic Nuclear Power Plant-2 and Novovoronezh Nuclear Power Plant-2. State corporations’ plans, in case of their implementation, will provide significant support to Russian construction and related industries. And in combination with development of the commercial real estate market they represent basic “drivers” of metalwork market.

For more information please see “Metalwork Market: Forecast for 2013-2016” by Intesco Research Group.

The given figures were calculated by analysts of Intesco Research Group based on the official statistics.