Managing Industrial Development under Systemic Disproportions: the Structural Factor and Material Intensity in Ukraine’s Manufacturing Sector
DOI:
https://doi.org/10.15407/scine21.06.049Keywords:
industrial production, processing industry, structural shifts, material intensity of products, sold products.Abstract
Introduction. The post-war reconstruction of Ukraine’s industrial sector shall proceed in line with development
priorities that enhance competitiveness, reduce resource and material intensity, and improve labor productivity.
Problem Statement. Ukraine’s industrial structure has long been dominated by low-technology, resourceoriented enterprises with limited value added, which has largely determined the persistently high material and energy intensity of production.
Purpose. This study has examined the impact of structural shifts within the manufacturing sector on material
intensity and has substantiated the strategic directions for its recovery.
Materials and Methods. The index and coefficient methods have been applied. The analysis has been based on data from the State Statistics Service of Ukraine, including indicators of sales volumes and material costs.
Results. The study has assessed the influence of sectoral structural shifts on production efficiency. It has been
established that during 2020–2022, the structural factor has contributed to a reduction in the average material intensity of manufactured products — by 15.2% in 2020, by 13.1% in 2021, and only marginally in 2022. The findings have demonstrated that the recovery of the manufacturing sector driven by high- and medium-technology industries ensures the largest decline in average material intensity, equivalent to 13.1 kopecks. Moreover, production growth based on these industries has required approximately 30% less material expenditure compared with traditional low-technology manufacturing.
Conclusions. Recovery centered on low- and medium-technology industries has demanded an additional 100 billion units of material resources. The structural restructuring of Ukraine’s manufacturing sector shall therefore be grounded in a reorientation of state investment policy toward high- and medium-technology industries to secure sustainable reductions in material intensity and improve long-term competitiveness.
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