THE CONSTRUCTION INDUSTRY AND THE COVID-19 PANDEMIC: NEW CHALLENGES AND OPPORTUNITIES
Abstract
The article investigated the problems of the construction industry until 2020 and assessed the reasons for their formation. New challenges for developers during the spread of coronavirus infection (COVID-19) are also described. External and internal factors that put pressure on the industry were considered. This is a huge increase in the cost of building materials, a shortage of labor resources, the technological lag of the industry, administrative barriers, the introduction of the institute of project financing, uncontrolled cost growth in the primary housing market. The most promising mechanisms and directions are proposed for the restoration and development of the construction industry. In order to reduce the cost of construction products for individual development projects, logistics schemes should be optimized, transport costs in the price of materials should be reduced. It is necessary to reduce dependence on migrant workers, develop cooperation with educational institutions and train young people for their own business. The article discusses the issues of increasing labor productivity and efficiency of construction production, supports the initiative of the Government of the Russian Federation to develop and implement the Digital Construction service. This service will simplify the interaction between various participants in the investment and construction process and use BIM technologies in the design and construction of real estate. To reduce the debt burden on the construction business, it is proposed to use an alternative source of funding. Bond borrowing in the financial market will provide a more flexible planning of the company's cash flows even at the stage of issuing securities.
Keywords
bond borrowing, COVID-19 pandemic, project financing, cost of construction, construction industry, construction manufacturability
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About the Authors
Ekaterina V. Solovyova – Doctor of Economics, Docent; Head of Department, Kuban State Technological University, Krasnodar, Russia. E-mail: soloveisolovei008@yandex.ru. SPIN РИНЦ 1015-1724. ORCID 0000-0002-8354-5887
Valentina N. Berdnikova – PhD in Economics, Docent; Associate Professor, Kuban State Technological University, Krasnodar, Russia. E-mail: wkoshman@rambler.ru. SPIN РИНЦ 5854-6298. ORCID 0000-0002-9842-8368
For citation
Solovyova E.V., and Berdnikova V.N. The Construction Industry and the COVID-19 Pandemic: New Challenges and Opportunities // BENEFICIUM. 2021. Vol. 3(40). Pp. 35-42. (In Russ.). DOI: 10.34680/BENEFICIUM.2021.3(40).35-42
