Yekaterinburg construction market to see dropping sales and profits

June 18, 2014. The ongoing economic crisis forced most large enterprises to cut their investment programs by 1.5 to 2 times. This, in its turn, will result in slower construction speed and dropping profits, the Economic Events Bureau claims.

The Director-General of GEN STROYURAL Construction Company Evgeniy Golubenko pointed out that small and medium enterprises might turn out to be the ones that will get hit the hardest, since these are the SMEs that are least resistant to shocks. The current state of affairs is made even worse by the fact that the competition on the construction market is getting fiercer.

‘If the government offers no support to business and takes no other steps, the second wave of the recession will be grave enough. Investors are calculating their risks, and it’s difficult to make any forecasts. However, because risk management estimates only offer gloomy outlook, developers have been very cautious about their investment policy,’ Golubenko says.

Experts believe this drop in sales might also have to do with strong competition and ongoing economic downfall. Some of them even feel the 2008 scenario might unfold on the construction market again.

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