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Four rules will help stop the decline of the construction industry in the absence of migrants

The outflow of visitors from neighboring countries has complicated the situation with personnel in the construction industry. It has not yet been possible to intensify the attraction of migrants, and local specialists do not want to go to work on a construction site. To change the situation for the better in the organization of the construction process, it is important to apply four main rules.

Four rules will help stop the decline of the construction industry in the absence of migrants

undoubtedly, in the near future, developers will still have to change their approaches to recruitment, since in the new reality, saving on labor will not allow reducing production costs as a whole. Otherwise as a construction industry, so future buyers of real estate will face a lot of problems.

Migrants are worth their weight in gold

The residential real estate market showed unusually high growth rates last year. Following the demand for apartments, prices began to rise, which made the area more attractive for investment inflows, pushed developers to increase industry supply.

In many respects, this was facilitated by a long period of soft monetary policy of the Central Bank and the program of concessional lending.. Never in the modern history of the country has a mortgage been so cheap. But the pandemic and devaluation of the national currency have made significant adjustments to the development of the industry.. I can hardly be wrong, assuming, that over the next two years, mortgage rates will be smooth, but steadily rise.

With regard to increasing the volume of construction, here many companies are faced with an acute shortage of personnel, primarily from the former republics of the USSR. Foreigners, who went home, could not return to Russia due to closed borders. Some migrants naturally "flowed" into the service sector and personal services, where they could be offered the best working conditions in comparison with the construction site.

Four rules will help stop the decline of the construction industry in the absence of migrants

How much earlier the relatively low price and high flexibility of the labor market were an inexhaustible driver of growth in the residential real estate sector?, just the same, its outflow in the last year turned out to be a key factor in slowing down the supply of square meters.

What to do with the labor market?

Targeting the least demanding workers, certainly, allows you to reduce costs for developers, but exacerbates the problem of the quality of construction, slows down the technological development of the company and the entire industry as a whole, sharply reducing its stability in the face of external shocks.

At first, that the roles of regional and national labor markets increase, first of all, we need a significant improvement in working conditions, temporary residence of employees, compliance with all norms and guarantees of labor legislation. this, of course, not easy and expensive. But in the end, a decent level of wages on the part of developers and contractors in large cities is guaranteed to attract specialists from Russian regions..

Secondly, perhaps, it is worth more actively using the so-called rotational method, including with partial support from the state, when you are offered an intensive job for a period of two to six months. Now this form of organization of the work process is actively used in oil and gas production., and she justifies herself.

Four rules will help stop the decline of the construction industry in the absence of migrants

Thirdly, another solution to the problem is the restoration of the mechanism for attracting specialists from abroad, lost in the pandemic. This will allow the construction industry not to "shrink" and stably maintain the annual volumes of housing commissioning. Moreover, there is a need to expand the list of countries, ready to send labor migrants to Russia on a permanent basis. for example, yet 10-20 years ago, citizens of Turkey and China often came to us to work, the quality and speed of work were higher, than our compatriots.

Fourth, it is worth thinking about abandoning the rather outdated and laborious technology of monolithic reinforced concrete and more actively developing labor-saving, capital intensive technologies, relying on a greater level of automation and robotization of all production processes. At one time, such decisions made it possible to multiply the production volumes and make a personal car massively available., Personal Computer, modern digital services.

In the future, this will contribute to the relative release of labor., which ultimately will reduce the state's dependence on the need for large-scale attraction of migrants. The production process will also be significantly accelerated., variable costs will decrease, the quality of the final product and its stability will increase.

Dmitry Desyatnichenko, PhD in Economics, Associate Professor of the Department of Economics of the North-West Institute of the Russian Presidential Academy of National Economy and Public Administration

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