(Photo: © Liftowa Panorama)
April 2023
This article is intended to provide German and other readers with an overview of the lift market in Ukraine and its opportunities in the future. It was written by Maria Pilipiv and Oleg Skripez. They are the publishers of the Ukrainian lift trade journal “Liftowa Panorama”.
The lift sector in Ukraine is facing a profound crisis. Seventy to seventy-five percent of the lifts are outdated and should no longer really be in operation. One indicator of this is the fifty percent plunge in functionality of emergency call systems in the last 30 years. There is a lack of well-trained personnel and centralised standards for the lift sector.
The EN 81-20 directive actually entered into force in Ukraine in 2019, but it conflicts with previously valid Ukrainian directives and regulations, which are likewise still in force. This has led to a rift in the market regarding the current guidelines in the market.
More information: Dowload here the Ucranian Original as PDF. Price distortions and corrupt practices have arisen due to interventions by public authorities in private modernisation projects through state / municipal co-financing / subsidies. If lift modernisations were completely a matter for the owners, as in Germany, for example, such distortions in price structures would not occur.
Due to the current situation in the country, support by public bodies has been suspended, since no more public funds can probably be provided.
According to estimates by sector experts, there were about 100,000 lifts in Ukraine. These lifts are for the most part outdated and have clearly exceeded the safe operating duration of about 25 years. The number of new installations and modernisations remains well behind the number required in view of the rate at which the lifts are aging.
The market participants in the service field are for the most part small companies that cannot be regulated and in view of the absence of standardisation of technical service in maintenance and repair often provide defective service. The training of skilled personnel for the sector has almost ceased.
Before public sector involvement in modernisation is authorised, the lift is inspected by an officially certified expert. These assessors are likewise part of the system and are also subject to certain pressures from the one or other side. Expert opinions are often rejected because of particular conflicts of interest. This occurs at the expense of quality and safety and does not really improve the situation of the Ukrainian lift sector either.
In 2006, the legislature intervened in the pricing for services and introduced monthly flat rate service fees. This in turn led to necessary services no longer being rendered or being impossible to render – as is so often the case when government bodies with little or no competence intervene in market behaviour.
Up to 2014, the main suppliers for lifts were Mogilovliftmasch (Belarus) with 68 percent, Tzscherbinski (Russia) with 10 percent and Karaliftkomplekt (Ukraine) with 6 percent market share. These market shares have shifted in favour of market participants from Turkey, China and Europe in the last ten years.
In general, one can say that the Ukrainian lift market requires a fundamental transformation. All state intervention and regulation, except what is legally necessary (regarding technical requirements), has to be dismantled.
European standards can be adopted for technical requirement and do not require new development. This disentanglement would also eliminate corrupt structures and allow the market to find its own pricing. Many problems would then solve themselves. This is also true of importing goods into Ukraine.
This article series will continue with an outline of additional information regarding import statistics and future opportunities in Ukraine.
More information: The German translation was made by Yuliya Pfaff, who would be pleased to answer any questions (tel. +49 178-5583368). You can download the original in Ucrainian as PDF here.
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