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The business plan of the enterprise for the production of frame-modular buildings

1. SUMMARY OF THE PROJECT
The purpose of the project is the organization of an enterprise for the production of frame-modular buildings in Yaroslavl. Modular buildings can be used as change houses, mobile office buildings, shopping pavilions, country houses, as well as full-fledged residential buildings. The advantages of these buildings are:

low cost – the use of cost-effective materials in the design allows to reduce the cost compared to wooden or stone (brick, gas-block) buildings; since the modules are manufactured according to standard designs, and the buyer orders the finished goods from the catalog, a minimum of work is carried out directly at the construction site, which also reduces the cost of construction and its time

the use of standard modules allows to reduce costs due to mass production, as well as reduce the cost of warehousing of finished products, which allows to increase the profitability of the enterprise

2. COMPANY DESCRIPTION AND INDUSTRY
Since the project relates to construction infrastructure, it is advisable to consider such interconnected markets as: the construction market, the market for building materials and the market for translucent structures.

According to IndexBox, the construction materials market in the first half of 2016 was subject to the following influences:

reduction in residential construction (-16% over the same period last year)

some growth in non-residential construction (+ 3% over the same period last year)

decrease in production of basic building materials (-8% over the same period last year)

growth in production of finishing materials (+ 5% over the same period last year)

decrease in investment in construction (-1.6% by 2015)

Since December 2014, there has been a permanent decline in sales in the primary housing market. During this time, sales fell by about 30-35%. The largest decline in housing construction was observed in February 2016, after which there is a gradual increase in this indicator. The decline in sales was primarily caused by a decrease in the number of people who purchased real estate for their own savings. To improve the investment background in the industry, the state has taken a number of measures to stimulate the housing market (subsidy programs).
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In non-residential construction, the volume of construction of commercial real estate decreased, the share of agricultural and industrial buildings increased (Fig. 1).

Against the background of a decline in real incomes, there is a shift in demand towards building materials of a low price segment.

Figure 1. The structure of commissioning of non-residential real estate by type in the I quarter of 2015 – I quarter. 2016 (data from Rosstat, IndexBox)

The business plan of the enterprise for the production of frame-modular buildings

Traditionally, more than 60% of investments in fixed assets in Russia belong to the construction industry. At the same time, there is a growth trend of this indicator in a crisis. In 2015, 5,945.5 billion rubles were invested in the construction industry. According to the forecasts of the Ministry of Economic Development, a positive value of investment indicators in the industry should be expected in 2017; expected growth rate in 2017-2019 – 2.7% per year.

The driver of growth (decrease in the rate of decline) in sales of construction raw materials and materials was the increase in the volume of repair work against the background of a decrease in construction volumes.

Figure 2. Dynamics of production of basic building and finishing materials in the 1st half of 2015 – the 1st half of 2016 (data from Rosstat, IndexBox)

The business plan of the enterprise for the production of frame-modular buildings

The share of imported components (primarily PVC profiles) in the plastic window market (according to O.K.N.A.-marketing) has dropped significantly – from 35% in 2006 to 2% in 2015. According to experts, the most likely scenario for the development of the market in 2016 is its fall within 15%.

Competition in the industry today is relatively low due to the small number of players and established spheres of influence.

The business plan of the enterprise for the production of frame-modular buildings

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