The impact of the COVID-19 pandemic on the construction industry

This article is devoted to the study of the impact of the crisis caused by the new coronavirus infection on the main indicators of the construction industry. Due to the fact that the construction industry has an important socio-economic importance in the national economy, coverage of the main problems faced by the industry during the coronavirus pandemic seems to be the most relevant. The scale of the impact of the COVID-19 pandemic on the country’s economy cannot be overestimated, as well as its consequences for some of the most affected industries. The epidemiological situation in a short time affected the construction sector in the Russian Federation, exacerbating all the existing problems of the industry that have accumulated in recent years. The authors present the key trends in the industry caused by the pandemic and the subsequent restrictive measures by the Government of the Russian Federation. The article reveals issues related to the growth of the cost of metal products, construction materials and works. The main factors of price growth, containment measures and economic consequences for companies are presented. The impact of the crisis on the production activity of construction organizations is considered, the main factors limiting production activity are identified. The outflow of labor migrants has led to an increase in the payroll of companies and a shortage of labor. Identified reasons: rising prices for building materials, construction and installation works, transportation. In particular, this has hampered the activities of companies implementing projects with the participation of budgetary funds, since, as a result of rising prices, losses arise that are not covered by the fixed price of the contract. In addition, there is an excess of the growth rate of the cost of materials over the growth rate of real estate prices. The benefit for the population from subsidized mortgages in the face of rising real estate prices decreased, which affected demand in the housing construction segment. In the short term, the situation in the industry will largely depend on the speed of recovery processes in the economy, the stabilization of prices for basic building materials, the legalization and transparency of attracting foreign labor, as well as the decisions of the Government of the Russian Federation regarding measures to support the construction industry and its ability to provide the necessary construction volumes.

1. Promy`shlennoe i grazhdanskoe stroitel`stvo. Vvedenie v professiyu: uchebnoe posobie [Industrial and civil construction. Introduction to the profession: textbook] / V. S. Gry`zlov, V.N. Vorozhbyanov, Yu. B. Gendlina i dr. Vologda: Infra-Inzheneriya, 2021. 268 s. [in Russian].

2. Kulikova I.Yu. K voprosu o vliyanii pandemii COVID-19 na razvitie stroitel`noj otrasli [On the impact of the COVID-19 pandemic on the development of the construction industry] // E`konomika i upravlenie: problemy`, resheniya. 2020. T. 3. № 11(107). S. 20-26. DOI:10.36871/ek.up.p.r.2020.11.03.004. [in Russian].

3. Kostrikin P.N. Gosudarstvennaya podderzhka stroitel`nogo kompleksa v period pandemii COVID-19: perspektivy` i riski [State support of the construction complex during the pandemic hundredth-19th: prospects and risks] // Nedvizhimost`: e`konomika, upravlenie. 2020. №3. S. 8-13. DOI:10.22227/2073-8412.2020.3.6-13. [in Russian].

4. Bashkirceva I.V. Ly`marev I.G. Vliyanie COVID-19 na stroitel`nuyu otrasl` [The influence of COVID-19 on the construction industry] // XX nauchno-prakticheskaya konferenciya professorsko-prepodavatel`skogo sostava VPI (filial) VolgGTU (25–29 yanvarya 2021 g.). V: Volgogradskij gosudarstvenny`j texnicheskij universitet, 2021. 342 s. S. 333-335. [in Russian].

5. Adno Yu.L. Mirovaya metallurgiya v usloviyax pandemii [World metallurgy in the conditions of a pandemic] // God planety`: e`konomika, politika, bezopasnost`: Ezhegodnik/ Nacional`ny`j issledovatel`skij institut mirovoj e`konomiki i mezhdunarodny`x otnoshenij imeni E.M. Primakova Rossijskoj Akademii nauk (IME`MO RAN). M: Ideya-Press, 2021. 400 s. S. 52-62. [in Russian].

6. Polyakov F.A. Na poroge krizisa. Perspektivy` razvitiya i osnovny`e tendencii stroitel`noj otrasli Rossii [On the threshold of crisis. Development prospects and main trends of the Russian construction industry] // E`konomika i upravlenie: problemy`, resheniya. 2020. T. 1. №6. S. 36-41. DOI:10.34684/ek.up.p.r.2020.06.01.006. [in Russian].

7. Delovoj klimat v stroitel`stve v I kvartale 2020 goda [Business climate in construction in the first quarter of 2020]. [E`lektronny`j resurs]. URL: https://issek.hse.ru/news/357527785.html (data obrashheniya 16.04.2022). [in Russian].

8. Nacional`noe ob``edinenie stroitelej: oficial`ny`j sajt [National Association of Builders: official website]. [E`lektronny`j resurs]. URL: www.nostroy.ru (data obrashheniya: 10.04.2022). [in Russian].

9. Ministerstvo truda i social`noj zashhity` Rossijskoj Federacii: oficial`ny`j sajt [Ministry of Labor and Social Protection of the Russian Federation: official website]. [E`lektronny`j resurs]. URL: www.mintrud.gov.ru (data obrashheniya: 10.04.2022). [in Russian].

10. Indeks e`konomicheskogo nastroeniya v I kvartale 2021 goda [The index of economic sentiment in the first quarter of 2021]. [E`lektronny`j resurs]. URL: www.hse.ru/data/2021/05/13/1382041197/IEN_1Q2021 (data obrashheniya: 10.02.2022). [in Russian].

11. Stroitel`stvo v Rossii: Rosstat [Construction in Russia: ROSSTAT]. [E`lektronny`j resurs]. URL: www.rosstat.gov.ru/storage/mediabank/tASKTSkO/Stroitelstvo_2020 (data obrashheniya: 10.04.2022). [in Russian].

12. Delovoj klimat v stroitel`stve v IV kvartale 2020 goda [The index of economic sentiment in the first quarter of 2021]. [E`lektronny`j resurs]. URL: www.publications.hse.ru/pubs/share/direct/468738833 (data obrashheniya: 10.04.2022). [in Russian].

13. Osnovny`e rezul`taty` deyatel`nosti Minpromtorga Rossii za 2019-2020 god [The main results of the activities of the Ministry of Industry and Trade of Russia for 2019-2020]. [E`lektronny`j resurs]. URL: www.minpromtorg.gov.ru/docs/osnovnye_rezultaty_deyatelnosti_minpromtorga_rossii_za_2019_i_2020_gody (data obrashheniya: 10.04.2022). [in Russian].

14. Strategiya razvitiya promy`shlennosti stroitel`ny`x materialov na period do 2020 goda i dal`nejshuyu perspektivu do 2030 goda [Strategy for the development of the construction materials industry for the period up to 2020 and further perspective up to 2030]. [E`lektronny`j resurs]. URL: www.docs.cntd.ru/document/420353735?marker=6560IO (data obrashheniya: 10.04.2022). [in Russian].

15. Obzor stroitel`noj otrasli Rossii za yanvar` 2020 g. – mart 2021 goda [Overview of the construction industry in Russia for January 2020 – March 2021]. [E`lektronny`j resurs]. URL: www.ru.investinrussia.com/data/files/sectors/ey-russia-building-industry-overview-2020. (data obrashheniya: 10.04.2022). [in Russian].

16. Ministerstvo stroitel`stva RF: oficial`ny`j sajt [Ministry of Construction of the Russian Federation: official website]. [E`lektronny`j resurs].URL: www.minstroyrf.gov.ru (data obrashheniya: 10.04.2022). [in Russian].

17. Ministerstvo promy`shlennosti i torgovli Rossijskoj Federacii: oficial`ny`j sajt [Ministry of Industry and Trade of the Russian Federation: official website]. [E`lektronny`j resurs]. URL: www.minpromtorg.gov.ru (data obrashheniya: 10.02.2022). [in Russian].

18. Delovoj klimat v stroitel`stve vo IV kvartale 2021 goda [Business climate in construction in the IV quarter of 2021]. [E`lektronny`j resurs]. URL: https://publications.hse.ru/books/554339506 (data obrashheniya: 10.04.2022). [in Russian].

19. Federal`naya antimonopol`naya sluzhba: oficial`ny`j sajt [Federal Antimonopoly Service: official website]. [E`lektronny`j resurs]. URL: www.fas.gov.ru/publications/23457 (data obrashheniya: 10.04.2022).

20. Edinaya mezhvedomstvennaya informacionno-statisticheskaya sistema: oficial`ny`j sajt [Unified Interdepartmental Information and Statistical System: official website]. [E`lektronny`j resurs]. URL: www.fedstat.ru (data obrashheniya: 10.04.2022). [in Russian].