• Client

    The Ministry of Industry and Trade

  • Background

    An important factor that has a negative impact on the development of the investment machine building (machine tool building, power machine building, heavy machine building, oil and gas machine building) in Russia is the insufficient development of critically needed high-tech components of the production base. The deteriorating geopolitical conditions causes Russian enterprises limited access to the most advanced technologies, which creates the need for import substitution. At the same time, the deteriorating macroeconomic conditions formed the possibility of developing the components production in Russia, since the level of localization increasing makes the product more attractive for investment. In this context and according to the import substitution policy, the role of the localization level is increasing for the Ministry of Industry and Trade of Russia, now it needs to provide state support for the development of components production. The development of proposals for the draft concept for the production and export of the main types of components for investment engineering development will contribute to solving the industrial policy problems in terms of increasing the competitiveness of Russian engineering products, developing service competencies, increasing the volume of shipped products and the share of added value generated by Russian industrial enterprises.

  • Situation

    The SBS Consulting team has developed a development model for the critical components for investment machinery production by conducting:
    • The current state of Russian production of the main types of components for the main types of final products in the investment engineering industries analysis;
    • The Russian manufacturers of investment engineering equipment questionnaire survey;
    • The barriers to production development of the main types of components for investment machine building inventory;
    • The industrial policy international experience in the field of supporting manufacturers of the main types of components for investment engineering analysis.

  • Results

    The SBS Consulting team analyzed the structure of the main types of equipment in heavy, power, oil and gas engineering and machine-tool building cost, in order to determine the final product components share in the production cost. A list of the most critical for the competitiveness of the final equipment industry for investment engineering in Russia components production localization has been formed, based on the components share in the prime cost analysis, as well as their science intensity and import dependence in consumption. A strategic model for the development of the critical types of components production proposals have been developed, the possible measures of state support for manufacturers expert proposals have been formed and the required amount of financing have been determined, considering the specifics of certain types of components production state. One of the key support measures, on which the SBS Consulting team emphasized, is the adjustment of the current law No. 719, which enshrines the requirements for public procurement. To ensure a balanced determination of the level of localization and the growth of interest in the domestic components usage, it is necessary to introduce a point system in the law No. 719 with updating the requirements for components in accordance with their importance in the cost of the product and the complexity of their production. In addition to this measure, a wide range of financial, tax, regulatory and information support measures have been proposed at the stage of research and development, production and sale of components.