Lift force generated by changes in inertia
In the first half of 2025, the volume of multi-family housing commissioned decreased by 6% year-on-year, according to Rosstat. This trend has raised concerns about the state of Russia's multi-apartment buildings, particularly with regards to the aging elevator infrastructure.
Currently, 605,000 elevators are in operation in Russia. Of these, 50,000 have already reached their designated 25-year service life, and another 60,000 units will require replacement by 2030. The Russian Lift Association (RLA) estimates that replacing these elevators will require a substantial investment of 436 billion rubles.
Three scenarios for elevator replacement in multi-apartment buildings over the next six years have been proposed. The baseline scenario predicts that 20,000 elevators will be updated this year, with the figure increasing to 25,000 units by 2030. In the accelerated scenario, 22,000 new elevators will be installed this year, with 30,000 by 2030. In the inertial scenario, 18,000 units of equipment will be replaced by 2025, with the figure increasing to 20,000 by 2030.
However, the realization of any scenario for elevator replacement by 2025 seems unlikely, according to Sergey Firsov, the financial director of AO "Shcherbinsky Lift Plant". The reduction in production volumes increases the cost of each unit due to the idling of plant capacities, adds Artem Isaev, the CEO of "Puls" plant.
Accelerating the modernization of Russia's elevator industry can be achieved through targeted programs, believes Alexander Ruchyev, the President of the holding "Osnova". Not only direct subsidies for elevator equipment purchases, but also partial percentage reductions in credit and factoring rates would help, summarizes Sergei Firtsov.
The government has proposed that regions use the mechanism of writing off two-thirds of their debt for budget loans when purchasing elevators for capital repairs. However, the available search results do not contain information about which regions in Russia have implemented this mechanism by 2025.
The decrease in elevator purchases is due to a shortage of funding from regional budgets and insufficient funds accumulated in the special accounts of multi-apartment buildings. If accelerated replacement programs are not implemented, the share of outdated elevators will increase, warns Strategy Partners.
Export of equipment abroad has never been a priority for Russian producers, adds Mr. Firsov. Daria Andrianova is the author of the article.
Petr Harlamov notes that the average load on elevator plants is around 60-70%, a relatively low figure considering they operate in one shift instead of two. Despite the challenges, the future of Russia's elevator industry remains promising, with potential for growth and modernization through targeted initiatives and policy changes.
Read also:
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
- Dim outlook for a major energy corporation
