Record exports of plastic windows and doors made in Ukraine
Over the past 20 years, exports of Ukrainian windows have grown approximately 70 times, and over the past 4 years, it has tripled. 2021 was the most successful year for the Ukrainian window market before the outbreak of a full-scale war.
Exporting windows after a full-scale invasion
In the first two quarters of 2022, exports fell by one and a half times compared to the same period in 2021 for obvious reasons. However, the third quarter of 2022 was more successful and somewhat improved the situation. After that, shipments declined again for two quarters. However, the second, third and fourth quarters of 2023 saw significant growth, even exceeding the volumes of the corresponding quarters of the record-breaking year of 2021.
As a result, exports of PVC windows in 2023 increased by 6.6% compared to 2021 and by 39.5% compared to 2022.
In the first year after the outbreak of war and the full-scale invasion, there was a drop in exports of plastic windows, but the following year exports exceeded pre-crisis levels. It was true in 2015 and 2023. The global crisis of 2008 was not only a crisis in Ukraine but also a crisis in foreign markets, so the decline in PVC window exports continued for two consecutive years in 2009 and 2010.
Where are Ukrainian windows heading?
The main buyers of Ukrainian plastic windows are European countries, but exports are also made to North America.
In 2023, almost a third of Ukraine's exports were to Germany. Exports to six countries accounted for more than three-quarters of the total, including Germany, Lithuania, Poland, Spain, the Czech Republic, the United States, and the United Kingdom.
The distance from the North American market makes it difficult to increase the share of exports to the US and Canada. The share of exports to North America currently stands at 9.1%.
Середня відстань до країн-імпортерів становить 2156 км.
Prospects, opportunities and limitations
Currently, Ukraine accounts for 0.4% of global exports of plastic windows and doors, which corresponds to 27th place in the global ranking. This indicates the potential and opportunities for growth.
Advantages of Ukrainian exports:
- High-quality and relatively cheap products.
- Speed of order fulfilment.
- Ukrainians in Europe and North America.
Ukrainians are in Europe and North America. Among them are trained professionals who can contribute to the development of Ukrainian window exports locally. This would increase foreign exchange earnings for Ukraine and create jobs.
This factor can significantly accelerate the penetration of Ukrainian products into Western markets.
The experience of export-oriented industries suggests that the share of window exports can reach and exceed the volume of domestic production. Currently, exports account for less 10% of Ukrainian production, which indicates the potential for an increase in this figure.
Also, the EU and the US are undergoing a wave of building renovations, which will boost demand. In addition, the crisis in some countries may further increase demand for high-quality but affordable products.
In terms of constraints on export growth, there are three main factors, in addition to the risks associated with the war:
- Staff shortage.
- Logistical obstacles.
- Domestic demand during reconstruction.
During the rebuilding period, there is a possibility of strong domestic demand, which may limit production capacity and increase lead times.
In general, despite the horrific conditions of the war, Ukrainian businesses managed to organise their operations and ensure export growth.
Information sources: ITC, product group 392520
