Construction

Construction industry is the fast-developing market in Russia. Russian construction market has increased in 2 times since 1998. So construction equipment and material surveys are in high demand.

According to a survey, top-managers of international construction companies are interested in doing business in Russia. So 73% respondents from Eastern European and Mediterranean countries are interested in taking part in projection and construction of office blocks and hotels. Also 46% top-managers from Eastern European countries and 36% from Baltic states are interested in taking part in residential building construction in Russia.

Construction market can be divide into several sub-industries:

• construction activity
• construction machines
• construction materials

Construction activity

Main Russian construction companies are:

• Mirax-Group
• Group PIK
• Group SU-155
• Don-Story
• Glavstroy Corporation
• Mosingstroy
• Mospromstroy
• Mosfundamentstroy-6
  

Residential building is mainly in the following regions (September 2008):

Construction machines

Main Russian construction machine producers:

• GAZ Group
• Kirovec
• ChTZ
• UralVagonZavod
• Rzevskiy Kranostroitelniy zavod
• Karacharovskiy mechanicheskiy zavod
• Uhtinskiy mechanicheskiy zavod
• Balkran
• Mechaniccheskiy zavod (St.Petersburg)
• Nuyazepetrovskiy kranostroitel’niy zavod
• Mashinindustria
• Russkiy kranoviy zavod
• Zuevskiy Energomechanicheskiy zavod
• Stroytehnika

Share of non-Russian produced construction machines in Russian construction companies:

Construction materials:

Main Russian construction materials producers:

• Eurocement Group
• Group LSR
• Sibirskiy Cement
• Mordovcement
• Novoroscement
• Inteko

42% managers of construction companies attribute slow growth in building construction market to high costs of construction materials. 

Construction market research is usually focused on the following issues:

• buying criteria (e.g. brand/company reputation, price)
• overall satisfaction (e.g. last purchased machine/equipment/material)
• price sensitive measurement (optimal price, point of marginal expensiveness and cheapness)
• second choice brands (e.g. competitive)
• review of product support services after purchase (i.e. distribution channel analysis)
• customer loyalty

Most often used methods:

• In-depth interviews with potential customers of buildings, purchasers and operators construction machines.
• Survey of target respondents – brand loyalty, customer needs.
• In-depth interviews with construction experts who has sale and promotion experience.
• Focus groups – with construction experts and customers.