The construction industry is greatly affected by the war started by Russia in February 2022. The Russian government’s decision to invade Ukraine took everyone by surprise and at the same time, few people could predict that Ukrainian authorities could hold back the invasion for so long. This war has serious economic implications for multiple countries and it greatly affects the construction industries worldwide.
If you’re wondering why and how construction companies can be affected by the Russia-Ukraine war then keep reading this article. You’ll get a short overview of the situation and understand why this war is threatening the construction industry.
Construction Companies Might Pull Out from Russia and Ukraine
You probably already know that a plethora of companies have ceased their business operations in Russia as a result of the invasion. One of the most important companies is Mcdonald’s which closed hundreds of stores a few weeks after the war started. Similarly, a multitude of construction companies could also decide to pull out from Russia and Ukraine because it’s not feasible to do business operations in a war zone. This could seriously affect the construction industries in these two countries.
Infrastructure Needs to Be Rebuilt After the War Is Over
At the moment of this writing, Russia is continuously bombing important cities in Ukraine and targeting significant economic and administrative centers. This ongoing military effort has drastic consequences on Ukrainian infrastructure. For example, airports and roads need to be rebuilt, civilians need to be moved to more peaceful territories and important administrative centers need to be relocated. After the war is over, construction companies might need to focus their efforts on rebuilding Ukrainian infrastructure, a process that might take years to complete.
Some Construction Companies Have Launched Humanitarian Initiatives
As important construction materials and resources become scarce and more expensive, various construction companies have decided to invest their time and finances in humanitarian efforts. Certain Spanish businesses are setting up donation centers where people can bring goods and medicine to be transported to Ukrainian civilians affected by the war. More construction companies have decided to do the same in an attempt to limit the damages done to the Ukrainian population.
Construction Giant Caterpillar Pulled Out from Russia
As Mcdonald’s and many other famous companies have pulled out from Russia, construction giants such as Caterpillar have decided to cease business operations in this country as well. This is a laudable decision as any revenue going into Russia can be redirected to financing the war. Although Caterpillar and other construction companies might lose millions of dollars because they don’t operate in Russia anymore, this is the right thing to do to limit the military efforts of the Russian government led by Vladimir Putin.
At US Framing, we are committed to supplying our customers with top-quality construction services and raw materials to complete various commercial and residential projects. We are aware that the Russian-Ukraine conflict could last many months, but we go the extra mile to fulfill the demands of our customers. Contact one of our specialists today to learn more about our construction services.