Analysis of the Construction Materials Market in the Context of Economic Instability

The aim of the work is to study the economic situation of the construction materials market in the conditions of war in terms of assessing the intensity of competition in the construction materials market in Ukraine.
For the analysis of the construction materials market was used system analysis, method of comparative and statistical analysis. Systematic method – for elucidating the conceptual foundations of the functioning of the Ukrainian market of building materials, including its segmental structure, the interaction of market subjects and key factors of development. Methods of comparative and statistical analysis – to study the peculiarities of the construction materials market development, in particular, the dynamics of prices, production volumes and imports. Problem-oriented method—to identify the main problems of economic development of the construction materials market and the factors that affect it. Statistical analysis – to analyze the dynamics of economic development of the market, changes in supply and demand in its individual segments, as well as to assess the impact of key macroeconomic indicators on the market. The assessment of the concentration levels of the building materials market was carried out using the index method and such indicators as the Herfindahl-Hirschman index, the Lind index, and the Ginni index were used.
The results of the assessment of the construction materials market showed that: in the period 2021- 2023 the Herfindahl–Hirschman index was 527,48; 782,46; 639,98 respectively; the Linda index showed that to the core of the market in 2021, four enterprises entered (Shlyahovyk-97 LLC, Ivano- FrankivskCement PJSC, Podilskyi Cement JSC and Dickerhoff Cement Ukraine PJSC); in 2022 four enterprises (PJSC ‘Ivano-FrankivskCement’, LLC ‘Glass Alliance’, JSC ‘Podilskyi Cement’ and LLC ‘Knauf Gypsum Kyiv’); in 2023 two enterprises (PJSC ‘Ivano-FrankivskCement’ and LLC ‘Glass Alliance’); the Gini index demonstrated high levels of income unevenness in the construction market in 2021-2023(0,76; 0,78; 0,84 respectively).
The Ukrainian construction materials market has undergone significant changes due to the full- scale invasion. In 2022, there was a significant decline in production, investment and foreign economic activity, which negatively affected the construction industry as a whole. The market recovery depends on the pace of reconstruction of supply chains and production facilities, as well as the implementation of modern competition strategies. Fierce competition is forcing manufacturers to innovate, develop export potential and localize production. Adaptation to global trends, integration of energy-efficient technologies and optimization of government regulation create prospects for long-term market growth even in difficult conditions.
It is concluded that due to the unstable situation in Ukraine, the construction materials market is suffering, so the government is trying to increase production by creating favorable conditions. There is a high concentration of competition in the security areas, which leads manufacturers to improve the quality parameters of building materials. Structural changes caused by the hostilities require the integration of energy-efficient technologies and a focus on the production of new generation construction materials, which will help the construction materials market adapt not only to unstable conditions but also to global trends.
With the difficulty of collecting data in wartime, the article provides unique empirical material on the changing structure of demand, price dynamics, the impact of inflation and the growth of imports of construction materials. The article offers a forward-looking approach to market development through the prism of its role in Ukraine’s post-war recovery, emphasizing the need for sustainable solutions that meet long-term sustainable development goals.