INDUSTRIAL AREA DEVELOPMENT

While property market suffers from building land deficit, manufacture bears expenses for supporting ineffective spaces which lost their relevance. Industrial area occupies thousands of hectares. Most of them ended manufacturing long time ago and turned into chaotic dump site.

From the Soviet Union with its planned economy our country inherited one of the most powerful industrial capacities in the world. In the Russian Federation so called industrial area takes about 40 % of city territories, when in European cities it makes up less than 10%. Nevertheless it has to be admitted that the rate of industrial efficiency is much lower than in Europe. Let’s clear up the reasons of such predicament.

A big amount of manufacture financial recourses is allocated for maintaining of oversized and inefficient infrastructure. Large spaces of industrial area are occupied by additional buildings and constructions which require expenses on electricity, water supply and other necessary supporting. In modern world such way of management is totally illogical and irrational. Considering the abovesaid it is obvious that manufacture has an urgent need in modernization and transition to a new quality level from a point of manufacturing.

So, what is the way to transform a lossmaking business into a COMPACT ECONOMIC and EFFECTIVE manufacture? It is reasonable to improve manufacture infrastructure by releasing inefficient spaces of industrial area. Hereafter a part of released territory should be redeveloped and made available for house building, according to municipal town planning scheme, or arranged for sale. The financial resources received from sold non-core assets and saved on inefficient infrastructure support are to be means for development, technical modernization and transition of manufacture into a new quality level.

Thus, by rational use of industrial area manufacture can essentially increase its efficiency and marketability in the world market severe conditions. At the same time city residents will get additional housing spaces, facilities for social needs, roads and parking lots which can be located on former inefficient industrial areas.