Pridex, one of the largest fit-out contractors in the Russian market, presented data on the change in the cost of office decoration. The calculations were based on a study of the requirements of open tenders and an analysis of internal purchases of the company.
As noted in Pridex, this situation was due to several key factors: the breakdown of supply chains, rising inflation, as well as the delayed effect of the COVID-19 pandemic. In addition, a high load of local production was important, which often lacked the capacity to meet the increased demand, which led to an increase in the supply line. To solve the problem, it is necessary to expand production, acquire foreign machines, equipment and components, which naturally affects the cost of final products.
- Alexander Aleinikov,commercial director of Pridex
“In the first quarter of 2023, we saw a more positive picture: although the price rollback, of course, did not occur, the dynamics of value returned to pre-crisis indicators. This is largely due to the completion of a number of major transactions to sell assets of foreign producers to Russian management. Nevertheless, the market is still seriously dependent on exchange rate fluctuations - even if components are purchased from, for example, Turkey or China, all mutual settlements are somehow tied to foreign currency. Therefore, taking into account the current weakening of the ruble, we again expect prices to rise in the second quarter of this year”.