{"id":149422,"date":"2025-05-13T18:52:03","date_gmt":"2025-05-13T15:52:03","guid":{"rendered":"https:\/\/ldaily.ua\/?post_type=interviews&p=149422"},"modified":"2025-06-23T10:12:59","modified_gmt":"2025-06-23T07:12:59","slug":"budivelna-galuz-odna-z-tih-yaka-pokazu%d1%94-zrostannya-navit-zaraz","status":"publish","type":"interviews","link":"https:\/\/ldaily.ua\/en\/interviews\/budivelna-galuz-odna-z-tih-yaka-pokazu%d1%94-zrostannya-navit-zaraz\/","title":{"rendered":"The Construction Sector Is One of the Few Showing Growth Even Now"},"content":{"rendered":"

Konstantin Ivanov<\/strong>, Director of LLENTAB Ukraine<\/strong>, spoke with LDaily<\/strong> about the dynamics of Ukraine\u2019s construction market, HR challenges during wartime, and the implementation of European occupational safety standards.<\/p>\n

LDaily: What changes have taken place at your company since our 2023 interview?<\/strong><\/p>\n

K. Ivanov: <\/strong>Last time, we talked about LLENTAB’s operations at the onset of the war, and we agreed that the construction industry in Ukraine held great potential. As the past year has shown, our assumptions were correct, and we continue to believe in that outlook today.<\/p>\n

We\u2019re confident that once hostilities end, the construction market in Ukraine will experience significant activity. In fact, we\u2019re already seeing early signs of that recovery. I recently reviewed some statistics: construction is showing one of the highest growth rates among all sectors, even under current conditions.<\/p>\n

That\u2019s why our strategy remains unchanged \u2014 we are focused on strengthening our processes and competencies as much as possible. We’re working on improving our organizational structure, heavily investing in employee training, and doing everything we can to be ready to deliver high performance when the market fully rebounds.<\/p>\n

LDaily:\u00a0Are you experiencing a shortage of qualified personnel?<\/strong><\/p>\n

K. Ivanov: <\/strong>Absolutely. The biggest gap is in construction-related trades, particularly among installation specialists. About 20% of our staff are currently serving in the Armed Forces of Ukraine, and most of them are from our installation department. That\u2019s a serious challenge facing the entire industry today.<\/p>\n

Speaking of process improvement \u2014 one of our key priorities right now is to develop solutions that enhance the efficiency of installation work while also reducing labor time. Even at the LLENTAB Group level, we\u2019re improving the product itself to allow for more efficient use of human resources. And this approach applies not only to installation but also to other areas like design and engineering.<\/p>\n

LDaily:\u00a0Has the geography of your projects changed? Previously, most orders were concentrated in western Ukraine.<\/strong><\/p>\n

K. Ivanov: <\/strong>Currently, the most active regions are the western and central parts of the country. Construction around Kyiv is developing quite intensively. For instance, we\u2019re currently working on an interesting project near Brovary, and we recently completed two industrial-warehouse facilities in Baryshivka. We\u2019ve also just launched a new project in the Zhytomyr region.<\/p>\n

The southern part of the country \u2014 particularly Dnipro and the surrounding areas \u2014 is understandably showing much slower dynamics in the construction sector due to obvious objective reasons.
\nThe western region, as before, remains a zone of high activity, which is quite logical under the current circumstances.<\/p>\n

LDaily:\u00a0What have been the most significant projects completed over the past two years?<\/strong><\/p>\n

K. Ivanov: <\/strong>Honestly, every project is important to us \u2014 each has its own unique story. But if I were to highlight something truly illustrative, I\u2019d mention a project we completed in the second half of 2024. It was for a long-term client for whom we had previously built several facilities in the Sumy region. The last of those was completed at the end of 2021 \u2014 just before the full-scale invasion. Given the proximity to the Russian border, the company had to consider relocation options.<\/p>\n

So, at the end of last year, we built a new production complex for them in the Ternopil region. It was truly a record-setting project \u2014 only four months passed from the decision to build to full completion. We constructed a 12,000-square-meter facility in the shortest possible time.<\/p>\n

Today, the company has already moved its equipment there and resumed operations. They\u2019re industry leaders not only in Ukraine but also in the European market, so a swift return to full production was critically important.<\/p>\n

Interestingly, while we were building this relocated facility, another company from Kharkiv moved onto an adjacent plot of land, and we\u2019ve already begun constructing a new site for them. You could say we\u2019ve effectively kickstarted the creation of an industrial park in the Ternopil region. I should note that the local authorities showed great openness and a genuine willingness to support investors. They actively helped companies resolve organizational issues and facilitated project implementation. And the result speaks for itself: in less than a year, two major manufacturers have relocated to the region and are on the verge of launching operations.<\/p>\n

LDaily:\u00a0How is the company adapting to today\u2019s market conditions? What challenges are you currently facing in Ukraine during wartime?<\/strong><\/p>\n

K. Ivanov: <\/strong>As I\u2019ve already mentioned, the biggest challenge is people. But perhaps even more difficult are situations related to uncertainty or sudden regulatory changes. And this isn\u2019t just a problem for us \u2014 it\u2019s a major pain point for the entire business community.<\/p>\n

One such example involves the process of reserving employees from military conscription. We went through the entire procedure as required by law, obtained all the necessary documentation, and then, just a month later, the rules changed significantly. Everything we had done was nullified, and we had to start the process from scratch. Instead of focusing on our core tasks \u2014 growing the business and building \u2014 we are forced to divert resources to navigating administrative bureaucracy.<\/p>\n

Another major challenge is the overall investment climate. We operate in the industrial construction sector, which is extremely sensitive to any form of instability. If even the slightest uncertainty appears in the market, investors immediately pause their decisions, delay projects, and wait. Naturally, this affects the number of new contracts.<\/p>\n

LDaily:\u00a0Do you currently have any frozen projects?<\/strong><\/p>\n

K. Ivanov: <\/strong>None are frozen. Even after the full-scale invasion began, we were able to complete all the projects that were already in progress at the time. The risks were enormous \u2014 we had no idea what our clients would decide: to continue or to stop, as the situation was changing literally day by day. The projects were at different stages \u2014 contract signing, preparation, or already entering the construction phase. But all of them were successfully completed in the end. Moreover, we signed several new contracts \u2014 both with long-standing clients and with new partners we hadn\u2019t worked with before. So overall, we closed 2024 on a positive note and are looking ahead with cautious optimism.<\/p>\n

That said, the biggest challenge right now \u2014 again \u2014 is uncertainty. We have projects in our pipeline that are ready to go, but investors are holding off on final decisions. At the beginning of the year, there was a sense of optimism, but by February the situation had shifted dramatically \u2014 and that\u2019s had a strong impact on business momentum.<\/p>\n

LDaily:\u00a0What new technologies or materials is LLENTAB introducing in its projects? And how is client demand changing overall?<\/strong><\/p>\n

K. Ivanov: <\/strong>LLENTAB has its own highly efficient modular steel construction system. It\u2019s a proven and effective technology with exceptionally low steel consumption and a durable zinc coating that practically requires no maintenance. So our structures are both high-quality and cost-effective by design.<\/p>\n

Recently, we\u2019ve seen a clear trend: demand for higher thermal insulation is increasing. Clients are paying more attention to energy efficiency \u2014 and that makes perfect sense given the current energy situation. For us, this isn\u2019t a challenge but rather business as usual \u2014 we\u2019ve been applying such standards for a long time, and recently we\u2019ve even raised our internal requirements further.<\/p>\n

We now include the option to install solar panels in all our projects. It\u2019s become a standard feature \u2014 we always incorporate the ability to install photovoltaic panels for future solar energy systems.<\/p>\n

Interestingly, over the past two years, nearly half of our clients have chosen to install solar panels. Some have even implemented full systems with energy storage to ensure backup and autonomy. So the trend is clear \u2014 businesses are striving for energy independence and environmental sustainability.<\/p>\n

LDaily:\u00a0Given the shortage of qualified personnel, do you have any innovative solutions to reduce the reliance on manual labor and move toward greater automation?<\/strong><\/p>\n

K. Ivanov: <\/strong>Yes, absolutely. Unfortunately, construction and installation are still among the least automated processes. In contrast, the production of our steel structures is fully automated. All elements are delivered to the construction site in a fully factory-ready state \u2014 with pre-drilled holes, precise dimensions, and no need for additional drilling or cutting. Essentially, we assemble the structures like a large-scale construction set. This significantly reduces the amount of manual labor required on-site.<\/p>\n

Our R&D department is continuously working to further optimize certain structural elements and reduce assembly time. These may not always be revolutionary changes, but every improvement matters.<\/p>\n

In design, we use advanced 3D modeling technologies, which not only enhance precision but also reduce the time needed for calculations and preparing documentation.<\/p>\n

Within the LLENTAB Group, there is a strong focus on sustainability and workplace safety. As part of a Swedish group, we implement European safety and labor protection standards at our construction sites. In Sweden, these standards are among the strictest in Europe, and we aim to meet that level.<\/p>\n

That\u2019s why we\u2019re actively introducing new approaches on our construction sites. Recently, however, we ran into an issue while trying to purchase specialized personal protective equipment \u2014 we found that such equipment is simply not available on the Ukrainian market. We reached out to several suppliers, but some couldn\u2019t even clearly explain what the equipment was, nor did they have the proper certifications.<\/p>\n

Still, we won\u2019t back down \u2014 for us, it\u2019s a matter of principle. Our motto is to be the first choice for clients in the steel building sector across all markets where we operate. And to achieve that, we strive to lead not only in design and structural quality but also in our overall construction culture.<\/p>\n

You can see it in how LLENTAB operates on a construction site \u2014 from the uniforms and equipment of our installers to the orderly condition of the worksite itself. That\u2019s what sets us apart.<\/p>\n

LDaily:\u00a0What are the company\u2019s strategic goals in Ukraine? Are you considering launching, for example, local production?<\/strong><\/p>\n

K. Ivanov: <\/strong>Our most important goal is to prepare LLENTAB\u2019s processes for further rapid growth \u2014 and we\u2019re already actively working in that direction.<\/p>\n

As for opening a production facility in Ukraine \u2014 we currently have no such plans. Today, it\u2019s difficult to make long-term forecasts, especially in wartime conditions. Everything depends on how the situation in the country and the market evolves.<\/p>\n

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