Ukraine’s machine-building: huge potential for growth
- Ukraine has significant reserves of raw materials which together with a developed metallurgy industry can satisfy large production needs. Most machine-building enterprises are located in the East of Ukraine, which is within a short distance from raw materials supply base, mainly steel.
- Ukraine is well supplied with an educated labor force as domestic universities and colleges graduate c. 10,000 students from machine-building faculties annually.
- Availability of developed transport infrastructure makes easy access to large export markets of Europe, Asia and the Middle East.
There are 13 main segments of mechanical engineering of Ukraine, which form 90% of added value in mechanical engineering:
- Air and space aircraft, related equipment
- General-purpose machines and equipment
- Other special purpose vehicles
- Units, details, and accessories for vehicles
- Electric motors, generators, transformers, electrical equipment
- Other general-purpose machinery
- Railway rolling stock
- Machinery and equipment for agriculture
- Military vehicles
- Wires, cables, and wiring devices
- Tools and equipment for measurement, research
- Home appliances
- Other electrical equipment
All of these segments need automation to raise its competitiveness, cut expenses, improve flexibility and speed of reaction to changes in customer demand, however, the specifics might differ from segment to segment.
business entities operating in mechanical engineering. This is 5.4% of the total number of business entities in all industries.
of the business entities operating in mechanical engineering are enterprises, In 2017 there were 4481 enterprises. This is 10.7% of the total number of enterprises in all industries and 1.3% of the total number of enterprises in the economy.
people were employed in mechanical engineering. This is 15.6% of the total number of employees in industry and 4.4% of the total number in the economy. The development of this sector is very important for GDP growth and overall country stability.
Volume of Ukraine’s exports of industrial machinery in 2019. Still, Ukraine’s production and export potential remains rather significant with much room for future growth.
Volume of Ukraine’s imports of industrial machinery in 2019. This is 22% of Ukraine’s total imports, which shows strong domestic demand for quality industrial machinery.
There are 13 main segments of machine building (mechanical engineering) of Ukraine, which form 90% of added value in mechanical engineering:
Unfortunately, the COVID-19 pandemic had a heavy toll on the machine building sector, which declined, according to official statistics, by 18.5% year-on-year in 2020. Luckily in 2021, post-COVID-19 economic recovery led to the reverse of the decline, with selective segments of the machine building sector heading for growth. In January-March 2021, the machine building industry slowed the decline to 1.6% year-on-year, and the production of equipment increased by 6.4%, while the output of non-automotive transportation goods increased 3.5%.
What is the Future of the Industry?
Ukrainian Machine Building Industry has a huge potential in development. Many actions have been done and more are coming. One of the major highlights of 2020, is the creation of the movement ClusteRISE by Association of Industrial Automation of Ukraine. Thanks to it, regional elites can create a powerful movement for real economic transformation of their regions.
Reports about Machine Building Industry in Ukraine
Check more reports on the modernization of the machine building industry here, about Industry 4.0 and regional programs and the concept of development of industrial high-tech clusters.