investments, entrepreneurship, furniture industry, woodworking industry, labour market, human capital, development strategies, Ukraine
Abstract
The article provides a comprehensive review of the current state of Ukraine's furniture and woodworking industries supplemented by a focused analysis of two specific elements that have been identified as primary constraints on the growth and development of enterprises operating within these industries. The first of these identified restraining factors is a significant shortage of qualified personnel. The second critical factor examined is the advanced stage of physical wear affecting the industries' core tangible assets. To establish a clear benchmark, a comparative analysis of the capitalto-labour ratio is presented within the paper, contrasting the economic realities of Ukraine with the established economies of the European Union. In addition, the article also puts forward a detailed comparison between Ukraine and Poland, focusing specifically on variances in their respective types of economic activity. Based on the conclusive results of this multifaceted analysis, the topic of capital investment in the furniture and woodworking industries is explored in greater detail. This examination formally confirms a clear and present need to attract substantial investment as a primary mechanism for increasing the overall competitiveness of these industries. A principal objective for this required investment is the deliberate reduction of the existing economic and technological gap that separates Ukrainian enterprises from their more advanced counterparts in European economies. To this end, the paper proposes a framework of four mutually complementary strategies designed to guide the future development of the industries. These proposed strategies are all predicated on attracting significant investment and are outlined as follows: 1) investment directed towards comprehensive technological modernization; 2) focused efforts on the development of innovative new products and the establishment of strong, recognizable market brands; 3) a systematic process for achieving industry certification that is fully compliant with the official requirements of the European Union; and 4) a dedicated and sustained focus on the development of human capital to align workforce skills with new technologies.
Author Biographies
Andrii Podlevskyi, National University of Water and Environmental Engineering, Rivne
Candidate of Economics (Ph.D.), Associate Professor
Oksana Podlevska, National University of Water and Environmental Engineering, Rivne
Candidate of Economics (Ph.D.), Associate Professor
Taras Komarenko, National University of Water and Environmental Engineering, Rivne
