Construction companies in crisis: "L1" ("LEK") - business-class apartments in St. Petersburg

At the end of 2014, the construction industry faced the most powerful external obstacles: the general economic crisis and stagnation in the banking sector.

This trend has affected the volume and pace of construction: the decrease in demand for housing in the middle and economy class by more than 30%.

For construction companies, a crisis is not an occasion to freeze their facilities, but rather a chance to survive and consolidate in the world market.

"This difficult period allows you to identify errors and make the necessary improvements to optimize business processes. Complexities in the construction sector are present, but they are not so critical, "- says a representative of the company" ALTIUS SOFT ".

Already after six months, the company "Montazh-Story" was able to give a qualitative response to the crisis: the construction of residential objects of economy class. The projects are based on the construction of monolithic reinforced concrete blocks. So the company was able to limit the cost of building materials and improve the quality of buildings.

A more decent response to the fall of the construction industry was provided by the company from St. Petersburg - L1 (before rebranding - LEK). The largest construction holding company notes a stable growth in orders for business class housing.

Obviously, large companies, such as L1, do not experience great difficulties, as optimization and work on the mistakes took place long before the onset of the economic crisis.

The largest holding in St. Petersburg notes a favorable investment climate for the construction of business class housing:

• First, such apartments, according to L1, are purchased by customers who are independent of lending;
• Secondly, the number of finished objects within the city decreases, and the demand for building only grows.

As for housing of medium and economy class, there really are difficulties, however they are quite reasonable:

• Growth of interest rates on mortgage loans;
• Currency devaluation;
• Decrease in the number of orders for construction.

Under such circumstances, the average citizen of the Russian Federation is insolvent. But in this case, the construction business has a well-reasoned answer: it is necessary to optimize the construction triad (timing, resources and finances).

Companies begin to focus on more economical materials, negate unnecessary waste, theft and so on.

At the same time, quality does not fall, but on the contrary: new materials have increased strength and durability.