Potential for development of woodworking productions in the Western regions of Ukraine and the directions for its realization

Abstract

Today, the woodworking industry is a strategically promising export-oriented segment of the national economy of Ukraine, as well as an important link for its integration into the global value chains. The presence of a significant raw material base and the prospects for expanding of product markets are the objective basis for the further dynamic development of domestic woodworking industry. The purpose of the article is to determine the production and export potential for the development of woodworking industry in the Western regions of Ukraine and to substantiate the organizational and economic forms of its practical realization. According to the results of the assessments, it is established that the vast majority of Western regions of Ukraine, especially Lviv, Ivano-Frankivsk, Volyn and Rivne, have significant potential for further dynamic development of the woodworking industry. The processing (wooden furniture, windows, doors, floor) and production of paper and paper products are defined as the most promising industries in the region from the point of view of import substitution (i.e. orientation towards meeting demands on the domestic market). At the same time, from the point of view of increasing the presence of wood products of Ukrainian producers on the foreign markets, the production of alternative finishing materials for furniture, the production of energy-saving products, as well as the production of plywood and wood pellets are promising. Vertical integration will facilitate the full realization of the potential of domestic woodworking enterprises. The creation of integrated business structures in the woodworking sector, in particular in the Western regions, will enable meeting the needs of the woodworking productions for raw materials by establishing mutually beneficial links with the forestry sector; supporting and stimulating investment activity at the meso-level, which will ultimately contribute to the formation of a high level of competitiveness of domestic wood products, and consequently, to acceleration of their entry into foreign markets and to increasing the efficiency of the Ukrainian woodworking industry as a whole.

Peculiarities of the woodworking industry development in Ukraine and its regions

“…У працях В. В. Дергачової, І. О. Турчака, О. В. Мартиненка виявлено, що саме деревообробна галузь переробної промисловості України є стратегічно перспективним експортоорієнтованим сегментом економіки України, яка за останнє десятиліття змогла успішно пройти крізь кризи та рецесії, наростивши обсяги виробництва, досліджено розвиток експортного потенціалу підприємств переробної галузі в умовах впливу пандемії Covid-19 (Dergachova et al, 2021). У роботах українських науковців проведено структурно-динамічне оцінювання виробництва та реалізації деревообробної продукції в Україні, та особливості її розвитку, зокрема у Західному регіоні (Ishchuk, & Koval, 2020), визначено спеціалізацію областей за видами заготівлі ліквідної деревини (Ishchuk & Sozanskyy, 2019), проаналізовано тенденції зовнішньої торгівлі продукцією деревообробної промисловості в Україні та країнах-членах ЄС (Sozanskyy & Koval, 2019). Практичного змісту набули окремі публікації, у яких авторами запропоновано показники економічної ефективності деревообробної діяльності (Holyk, 2018).…”

An Assessment of the Development Potential of Manufacturing Industries in Ukraine

“…The woodworking industry is a strategic exportoriented segment of the national economy. Advanced areas for the woodworking industry development in the oblasts of Western region could be revealed by the results of an assessment of the structure and dynamics of woodworking product distribution in Ukraine, in-depth research of the manufacturing and export potentials of domestic woodworking factories, and analysis of their technological specialization (by main product group) [14]. This enabled to determine mainstream strategies for implementing the potential of woodworking industry development in these oblasts with focus on internal and external markets (Table 4, author's development).…”