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| Emerging opportunities in the Russian and Ukrainian welding equipment market Frost & Sullivan, a global growth consulting company, issued a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the Emerging Opportunities in the Russian and Ukrainian Welding Equipment and Consumables Market. The growth of export-based industries together with the obsolescence of existing equipment is spurring demand for modern welding equipment and consumables in Russia and Ukraine. Boosted by these trends, the Russian welding equipment and consumables market will swell from $385.5 million in 2004 to $874.4 million in 2011 even as its complement in Ukraine expands from $84.9 million to $210.8 million over the same time frame. Rapidly growing, export oriented industries such as oil and gas in Russia and metallurgy in Ukraine, together with heavy engineering and automotive or aerospace sectors in both countries, is motivating higher uptake of welding equipment and consumables. The development of these export-based industries in both countries is, in turn, generating strong domestic demand for such industries as heavy engineering, power, automotive and construction, which use more sophisticated welding equipment. Even as export-based industries are powering economic growth in Russia and Ukraine, many domestic manufacturers are contending with obsolete welding equipment. In order to remain competitive in the global markets, many companies are investing in modern, high quality modern welding equipment. The replacement cycle has already started in Russia and is expected to start in Ukraine in 2006-2007. Similar to the Russian scenario, consumables, with nearly 66 per cent of overall revenues, comprised the largest segment within the Ukrainian market for welding equipment and consumables in 2004. Among welding equipment segments, arc welding contributed the largest revenues to the overall market followed by resistance welding and then gas welding. While the welding equipment and consumables manufactured by local Russian and Ukrainian companies trails its foreign counterparts in terms of new technology, usability and quality, their low price offers a key competitive advantage in these price sensitive markets. New entrants and foreign companies therefore have to contend with the strong domestic welding equipment industry. In particular, local Ukrainian manufacturers are increasingly using imported components to keep their production competitive in the market. For instance, Ukrainian welding equipment manufacturers currently use up to 70 per cent of foreign components in their equipment. Recent KZESO welding machines are equipped with Siemens/Bosch components that while resulting in a doubling of prices, also provide better quality of the welding and higher productivity of the equipment. write your comments about the article :: © 2006 Construction News :: home page |