DEVELOPMENT PROSPECTS OF UKRAINE’S CONSTRUCTION MATERIALS INDUSTRY UNDER WARTIME CHALLENGES

Abstract

The article examines and analyzes the current state of construction materials production in Ukraine under conditions of wartime challenges and transformational economic processes. The study explores the dynamics of the industry’s development in the pre-war period, when the construction sector demonstrated steady growth, increasing production volumes, and strengthening competitive positions compared to imported products. Based on statistical data, the key subsectors of the market are characterized, including the production of cement, concrete, metal products, thermal insulation materials, polymer products, as well as wood-based and ceramic materials. Particular attention is paid to the consequences of the full-scale invasion, which resulted in the disruption of logistics chains, loss of production capacities, energy shortages, and a decline in effective demand. It is determined that, despite significant difficulties, the majority of domestic manufacturers have maintained operational activity, adapted production processes to new conditions, and sought to minimize crisis phenomena without compromising product quality. The structure of the market and its level of concentration are analyzed, enabling an assessment of the industry’s capacity to meet domestic demand in the context of post-war reconstruction. The study identifies flat glass production as the most problematic subsector due to the insufficient number of specialized enterprises and dependence on imports. The necessity of implementing investment projects aimed at establishing new production facilities is substantiated as a strategic direction for strengthening the state’s economic security. The risks of potential shortages in certain product categories during the period of largescale reconstruction are outlined, particularly cement, concrete, PVC profiles, and mineral wool insulation materials, demand for which is expected to increase significantly after the end of hostilities. The paper also emphasizes the potential of applying circular economy principles and international experience in construction waste recycling to partially address material shortages. It is argued that the development of domestic production, modernization of enterprises, implementation of innovative technologies, and effective state support constitute key factors in ensuring the resilience of the construction industry. The study concludes that, despite the extremely challenging operating environment, Ukraine’s construction materials industry retains substantial recovery potential and is capable of becoming a fundamental driver of economic growth and post-war reconstruction.