There are lots of manufacturing industries in the world and manufacturing several products as per requirements. Each individual country focused on increase export rather than import for sustaining GDP growth. When we analyze overall all industrial environment each country has dependent on other countries for raw material, semi-finished parts and many more. each country producing products as per suitable raw material availability, easily labour availability and suitable weather availability. In this article we will discuss what are industrial impact on Russia-Ukraine war.
When we discuss Russia-Ukraine point of view during war supply of goods, manpower and other services between two country and other countries are restricted and that is the major impact. As per earlier discussion each county is dependent on other countries for transferring goods and services and individual maintain their GDP growth.
Before we analyze manufacturing impact, try to understand what type of manufacturing industries in Russia and Ukraine.
Manufacturing industries in Russia
- Oil and Gas: – oil and gas industries significant contribute to Russia GDP growth and Russia is a one of the largest oil and gas producer.
- Metals: – It produced steel, aluminum and other metals.
- Chemicals: – In chemical Russia produced polymers, fertilizers and other chemical products.
- Machinery and Equipment’s: – Russia produced machinery and equipment’s such as construction equipment’s, mining and agriculture machinery.
- Aerospace: – Russia is strongly focused on manufacturing aircraft and satellites.
- Defense: – In defense industry produces military hardware, weapons and ammunition.
- Foods and beverage: – In foods and beverage industries produces dairy products, meat and process foods.
Manufacturing industries in Ukraine
- Steel: – Steel is a significant contributor of Ukraine GDP growth and Ukraine is a one of the largest steel producing country.
- Chemical: – Ukraine produces fertilizers, pharmaceuticals and other chemical products.
- Agriculture: – Ukraine produces crops such as wheat, corn and sunflower seeds. Also Ukraine focused on producing dairy products and poultry.
- Machinery and Equipment: – Ukraine produces wide range of machinery such as industrial machinery, agriculture machinery and transportation equipment.
- Energy: – Ukraine has significant contribution in energy industry such as coal, natural gas and electricity.
- Aerospace: – Ukraine has less facilities on producing aircraft component and aviation industry, but this industry is currently growing stage.
- Textile: – Ukraine producing clothing, footwear and home textile.
Major impacting parameters for manufacturing industries
- During war loss of many manufacturing factories.
- Disturbed supply chain and logistics. (Drastically increases price of transportation due to port congestion & shortage of container)
- Difficult to transfer goods and services.
- Price of electricity increases.
List of Major Impact in manufacturing Industries
Automobile Industry – There are several impacting parameters of automobile industries on Russia-Ukraine war as per mention below. But when we compare with starting of pandemic sales growth will be drastically decrease.
- Input cost of raw material has been increases. (steel price)
- Price of crude oil drastically increases.
- Cost of transportation increases.
- Drastically increase price of other material such as nickel and aluminum.
Semiconductor Industry – In semiconductor industries Russia is one of the leading supplier of rare material used in semiconductor industry. Ukraine is a leading supplier of rare gases used in industrial laser and produce semiconductor chips. Review below attached impacting parameters for semiconductor industry.
- Supply of rare material and rare gases stop during war and facing major input material crises for semiconductor manufacturing.
Agriculture Industry – Russia and Ukraine one of the largest supplier of wheat and corn to different countries. During war demand of wheat and corn has been drastically increases due to supply issues. Review below impacting points for agriculture industries.
- Price of wheat and corn drastically increases.
- Increase the price of agriculture products such as bread, pasta and other FMCG goods because raw material crises.
- Impacting on increases transportation cost.