Production and sales of elevators in Russia

2024

Ministry of Construction of the Russian Federation creates a digital register of elevators

The Ministry of Construction and Housing and Communal Services of Russia has begun to develop a digital register of information in the field of elevator services. This was announced in July 2024 by the Deputy Minister of Construction and Housing and Communal Services of the Russian Federation Konstantin Mikhailik at a meeting of the section "Digital Transformation of Construction and Housing and Communal Services" of the Council for the Development of the Digital Economy under the Federation Council. Read more here.

The Ministry of Industry and Trade and the Ministry of Construction have developed a roadmap for replacing elevators

The Ministry of Industry and Trade and the Ministry of Construction have developed a roadmap for replacing elevators. This became known on June 17, 2024.

The draft roadmap provides for, among other things, measures to stimulate regional capital repair programs, financial support for elevator equipment manufacturers, increase demand for Russian products, ensure the production, supply, installation and operation of elevators, load production capacities of Russian elevator plants, digitalize the elevator industry, - a representative of the Ministry of Construction told Vedomosti.

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The state corporation "Дом.РФ" (participated in the preparation of the roadmap) reported that the document contains a number of initiatives on mechanisms and sources of financing for the replacement of elevators, increasing control over safety and quality - for example, proposals for training specialists, expanding the powers of technical supervision and digitalization of the industry.

In particular, it is proposed to create a unified register of elevator facilities, including in order to place in the system the results of technical examination of elevators by test laboratories (centers) assessing the compliance of elevators.

It is also planned to transfer to the electronic form of the passport for the already commissioned elevators, the creation of a system of electronic passports for elevator products, the introduction of a labeling system for elevator nodes. To automate monitoring the state of elevators, as well as the formation of predictive analytics, it is proposed to create a special digital platform.

As the newspaper notes, by 2025, in accordance with the technical regulations "Elevator Safety," 78,500 elevators must be replaced. Most of them have expired their assigned service life, the rest will expire until 2025.^[1]

2023: Lift imports rise 14.4% to 15,186

In 2023, 15,186 elevators were imported to Russia. For comparison, a year earlier, deliveries were estimated at 13,274 units. Thus, an increase of 14.4% was recorded, as evidenced by the statistics of the commission on elevator management of the public council under the Ministry of Construction, published at the end of February 2024.

According to the Vedomosti newspaper, referring to information received from the Shcherbinsky Elevator Plant (SHLS), which is part of the Дом.РФ group, until 2022, domestic products accounted for more than 70% of the elevator market in Russia. This figure began to grow against the background of the current geopolitical situation, due to which many foreign manufacturers left the Russian market, including Schindler, Kone and Thyssenkrupp. As a result, by the beginning of 2024, the share of domestic elevator products in Russia exceeded 80%.

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ShLZ notes that Russia's annual need for elevators ranges from 45 thousand to 60 thousand units. Demand is formed by developers who are building new buildings, and regional overhaul operators, within the framework of which lifts in apartment buildings are changing. At the same time, as noted, Russian elevator production enterprises are not loaded at full capacity due to lack of funding for overhaul. An estimated 18,951 lift replacement auctions were held in 2023, against 9,674 the year before.

According to SHLS, the average cost of installing an elevator is 2.5-3 million rubles, "but these figures are very conditional, since they do not take into account the number of storeys, nor the technical characteristics of the elevator, nor its class, nor the carrying capacity, nor other factors." In accordance with the technical regulations of the Customs Union, by February 15, 2025 in Russia it is necessary to replace all elevators that have expired (25 years). The cost of updating such lifts can be up to 300 billion rubles.^[2]

2022

Reduction of production by 34% to 20.9 thousand units

According to BusinesStat estimates, 20.9 thousand elevators were produced in Russia in 2022, which is 34% less than a year earlier. The study was released in May 2022.

One of the reasons for this decline is the departure from the Russian market by the American company Otis. At the same time, its production capacities, technologies and jobs in the Russian Federation have been preserved. In addition, Otis continued to supply parts, but this, according to a spokesman for the firm, is increasingly difficult due to economic and logistical sanctions. In August 2022, the buyer of Russian assets Otis resumed business under a new brand.

In addition to the suspension of the work of a large manufacturer, an additional factor in the decline in output in 2022 was the violation of supply chains. In the production of elevators at local enterprises, about 30% of imported components are used: mainly winches and microelectronics for elevator control stations. Problems with chips began back in 2021, and their stocks from manufacturers are limited.

As noted in BusinesStat, Russian manufacturers occupy a rather strong position in the segment of low-price equipment. Domestic elevators are mainly supplied to economy class housing and under replacement and modernization programs. The advantages of Russian elevators include: competitive price; a wide network of service centers that allows you to quickly provide technical support; low cost and availability of spare parts. In 2018-2022, about 63% of the elevators sold in Russia were of domestic production.

In 2022, elevators worth $3.6 million were exported from Russia, which is 78.7% less than in 2018. In 2021, against the background of an increase in the supply of elevators abroad, their total value also increased, in the rest of the years, revenue from the export of Russian elevators decreased.^[3]

30% reduction in production

In 2022 Russia , 21.6 thousand elevators were produced, which is 30% less than a year earlier. The decline was largely due to the fact that the pace of housing construction and commercial real estate in the country fell sharply. He writes about this on February 6, 2023, Kommersant referring to the data. Rosstat

Peter Kharlamov, general director of the Russian Elevator Association, calls the reduction in funding for regional programs to replace outdated and emergency elevators another reason for the decline in production volumes. According to him, in 2022, the regional authorities purchased 14 thousand elevators, which is 20% less than a year by year. This happened, among other things, due to the rise in prices for products. NEO Center expert Sergei Netsvetaev recalls that in 2022 Russian elevators rose in price by 30-50% due to the restructuring of supply chains for the purchase of imported components.

Elevator production in Russia in 2022 decreased by 30%

Vladislav Preobrazhensky, executive director of the Moscow Investors Club (unites developers), believes that the volume of elevator production was more affected by the freezing of the construction of commercial real estate.

According to Rosstat, the most serious reduction in elevator production - by 84% - in 2022 was recorded in the Far East, in Siberia - by 47%, in the north-west of the country - by 44%, in the central part - by 27%, in the North Caucasus - by 25%, in the Volga region - by 14%. Only in the Urals there was a threefold increase in production.

In the first half of 2022, the drop in elevator production turned out to be more significant - by 40% year-on-year. Then the work of enterprises was influenced by the negative situation in the economy, including in the construction industry, explains Elena Mironova, director of the estimated pricing department of Granel Group of Companies. According to her, the start of some development projects was postponed, but already in the second half of 2022 the situation began to change somewhat.^[4]

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