Bilfinger Tebodin conducted a survey for COVID-19 impact on markets and business in Russia
The COVID-19 pandemic and the self-isolation regime have undoubtedly affected the functioning of many industries, including the construction sphere. Bilfinger Tebodin held a survey among its clients in Russia, major market players, to find out what impact the worldwide spread of coronavirus had on their activities. Companies such as Danone, Borjomi, Miratorg, Oteko and others shared their insights.
The results showed that 83% of companies were operating normally and continued their current investment projects. To a lower extent, the spread of coronavirus has affected the construction of facilities in the food industry. All plants continued to operate, as well as continued the construction and renovation of running projects during the self-isolation regime. Plans for future projects remained unchanged. However, to ensure safety in the current epidemiological situation at work, additional protective measures were introduced for employees.
For other industries, the situation was more difficult, but also not critical. In the petrochemical and cement industries, most of the construction projects were also operational, but there were delays in the implementation of some projects due to the stoped travel policy of employees to the site due to quarantine in European countries. 50% of clients noted that restrictions on communication with foreign colleagues and licensees on projects became the main problem in the construction sector arosed during the pandemic, which is still observed today.
Overall, the survey results showed that 58% of respondents do not see any impact on key business processes: construction of current industrial facilities continues, as well as investment in new ones. However, 50% of investors postponed new projects. Experts predict that after leaving the self-isolation regime, the construction market will gradually return to a normal functioning. Different industries will have their own deadlines, but in general it will take about 6 months, according to 40% of respondents. It will be easier for companies working with suppliers from China, since the Chinese market is currently recovering most actively.
‘The last half of a year was unpredictably turbulent for many of us, however different forecasts have appeared. Conducted survey helped to make a cross-section and see a general mood of the business. Based on this data and own experience we see that the running projects and those where an investment decision was already taken are continuing. New projects are being a bit postponed: investors are waiting for some stability. Many factors such as safety measures, travel limitations, raw materials production, economical and market changes, prices and currency exchange rates are the reasons to take a pause. However in general investment activities are ongoing, even with a decreased market and industry capacity. Food, pharma, chemical and also oil & gas and petrochemical markets are not stagnated.’
Eduard Khakimov, Business Development Director in Russia and CIS