85% of Ukrainian Industrial Enterprises Do Not Plan to Reduce Production Volumes by 2027

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85% of Ukrainian Industrial Enterprises Do Not Plan to Reduce Production Volumes by 2027

According to a survey conducted by the Institute of Economic Research, 85.6% of Ukrainian industrial companies intend to maintain their current level of production at least until 2027. Another 12.1% of enterprises reported plans to increase production volumes, while less than 2% expect a decrease. This is the highest indicator of stability in production plans since October 2022.

This is reported by Finway

Production Performance Dynamics in June

In June, there was an increase in the number of companies that raised production volumes — from 19.5% to 22.6%. At the same time, the share of those enterprises that were forced to reduce production capacities decreased from 13.5% to 11.6%. All these data indicate a gradual recovery and increased confidence among industrialists.

Key Challenges for Business

Despite the positive trends, industrial companies continue to face a number of serious challenges. The main barrier to business development remains the security situation. Risks associated with military actions, missile strikes, and threats to physical infrastructure were identified as the primary issue by 58% of the surveyed enterprises. The same percentage of respondents highlighted the shortage of qualified personnel — this problem has remained relevant for over a year.

“Risks associated with the war, missile strikes, and threats to physical infrastructure were indicated as a primary issue by 58% of respondents.”

Another significant challenge for businesses is inflation. Thus, 42.8% of companies expect further increases in prices for raw materials and supplies, while 42.4% predict a rise in the cost of finished products.