Offices à la russe

European suppliers' share in office construction decreased by 37% in two years

Russian companies have significantly strengthened their positions, but for some products it is still difficult to find a quality replacement in the domestic market

Pridex, one of the leading players of the Russian fit-out market, assessed how the shares of suppliers from different regions of the world (Russia, Europe, Asia) in the office «construction cart» have changed. While Europe accounted for more than a third (38 per cent) of all material and equipment purchases in 2021, by December 2023 that figure had fallen to 24 per cent, while the share of domestically produced goods had risen to 66 per cent.

The study includes three main types of products: construction (rough) materials, finishing (clean) materials and engineering equipment. The calculations were based on the analysis of the company’s own purchases, customer specifications and the study of the requirements of open tenders.

Building materials

The main part of the rough material market is historically occupied by domestic producers, so the distribution of forces in comparison with 2021 has not changed: most of the positions are 100% produced in the Russian Federation. The exceptions are consumables (drills, drills, discs, etc.), which are still supplied mainly from Asia.

Finishing materials

In the area of finishing materials, Asian manufacturers strengthen their positions: for example, their share in lighting equipment increased by three times (from 10 to 30%). In addition, the supply of European floor coverings decreased by 23 p.p. in favor of Asia, although these products are still mainly produced in Europe. European plumbers also continue to dominate, accounting for about 80 per cent of deliveries over the past three years.

The share of domestic companies has increased, for example, in the purchase of porcelain tiles (from 26 to 60 per cent in two years) and lighting equipment (from 55 to 60 per cent).

Engineering equipment

In the engineering equipment segment, the role of Russian suppliers has significantly increased. The most significant changes took place in the part of plumbing systems, where the share of domestic products only for a year increased from 2 to 72%. In addition, the share of Russian electrical and electrical installation products increased drastically (from 2 to 27%), and purchases of pipe wiring and fittings made in the Russian Federation increased significantly (from 67 to 85%, non-metallic - from 15 to 60%) and cable systems have completely stopped being purchased from Europe.

Asian manufacturers have also strengthened their position in a number of areas: their share in air-conditioning supplies increased from 10 to 75%, in panel equipment from 10 to 50%, in pumping equipment - up to 25%

Alexander Aleynikov

managing director of Pridex

The trend towards import substitution is continuing, but two points are important to bear in mind. First of all, the growth of the share of domestic products does not always mean that the production was really completely localized: in some cases, foreign companies actually transferred the business to new Russian owners, However, technology and components remain largely foreign and continue to be imported through parallel imports. In addition, the situation is complicated by the fact that many corporations began to implement large office projects (for example, their own headquarters) even before the imposition of sanctions. Now they have already integrated certain communications and systems that involve the use of products of a specific manufacturer, which preserves the need for supplies from Europe and maintains the share of European products at a high level in a number of areas.

2024-04-23 12:30