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— Irina Igorevna, since this edition of the magazine will be seen not only by our regular readers, but also by the many participants and visitors to the Baufach-2001 trade fair, please give us a brief description of the structure of your center and the main areas of activity it pursues. — The PCC consists of a permanent exhibition of building materials and technologies, a business center, marketing and analytical service and an information department. The main tasks of the PCC are to create a professional center for exchange of information on products, technologies, services and projects in the construction field; to provide assistance in establishing direct contacts among construction firms and signing contracts for supply of products. In order to fulfill these tasks we created a permanent showroom of building materials and technologies. The permanent exhibition provides a range of services, including the following: — Distribution of advertising prospectuses at the PCC exhibition and at tens of trade fairs in the city and region, — Organization of roundtables based on display topics, — Preparation of contact reports in English. The business center organizes training seminars, presentations, business meetings, international congresses and conferences in the construction field. The marketing and analytical service is responsible for preparing marketing overviews and statistical data on building supplies. The information department is responsible for creating and updating the electronic database of companies in the construction industry of the city and region, and also for creating the virtual exhibition at http://www.infstroy.ru The marketing and promotion plan we have developed and introduced for building products and new technologies is quite effective and helps us to successfully fulfill the tasks set. — Irina Igorevna, perhaps before discussing the building supply market we should talk about general trends in construction? — You are absolutely right since the demand for supplies and technologies is determined by the degree of development of construction in the region and the priority position given to construction of one or another type of real estate. We have analyzed the situation in the housing, industrial and commercial construction markets in our city for the year 2000. In 2000 the yearly rate of housing construction in Saint Petersburg reached 1,080,000 square meters for all types of investor. Municipal orders accounted for approximately 1% of this figure. About 5% (54,000 square meters) of the total were reconstructed buildings. The lion’s share of new housing is taken by brick and panel homes, and the 8% taken by low-rise housing demonstrates the insufficient development of this market sector and the vast possibilities presented in this area (see Diagram 1). The industrial growth (approximately 20%) experienced by Petersburg last year did not lead to intensive construction since companies relied on existing capacity. According to our information, approximately 120,000 square meters of industrial space was put into operation in 2000. Of this space, manufacturing space (administrative and production areas, workshops, various manufacturing sectors) accounted for 103,500 square meters; various types of warehousing occupied approximately 8,500 square meters of space; and another 8,000 square meters were dedicated to trade and production complexes (see Diagram 2). Construction of commercial real estate in 2000: — business centers — 14,300 square meters; — gas stations — 2,470 square meters; — various built-in space — 24,900 square meters; — auto showrooms, automotive centers — 6,050 square meters; — garages (covered parking garages, underground garages, parking lots) — 19,350 square meters; — public buildings (for administrative purposes, spiritual centers, children’s institutions and others) — 29,100 square meters; — retail showrooms — 12,030 square meters; — retail sites and structures (covered farmer’s markets, stores, showrooms, shopping centers, etc.) — 25,100 square meters. Between 133,000 and 135,000 square meters of commercial real estate were built in the year 2000 (see Diagram 3). — Irina Igorevna, could you name the main types of building supplies used to conduct the marketing study? — The following supplies were highlighted in our analysis of the structure of building materials supply and the share of German firms on the Saint Petersburg market: — heat insulation materials (Diagram 4); — extruded penopolystyrol (Diagram 5); — waterproofing, (Diagram 6); — drop ceilings (Diagram 7); — windows (Diagram 8); — lacquers (Diagram 9); — water-based paint (Diagram 10); — metal roof tiling (Diagram 11); — natural roof tiling (Diagram 12); — laminated particle board (Diagram 13); — hardwood parquet (Diagram 14); — laminated parquet (Diagram 15); — sealants; — dry mixtures (Diagram 16); — steam-heat radiators (Diagram 17). — What conclusions can we make based on the diagrams shown above? — Obviously, the role of Germany on the Petersburg building supply market is quite great. The most developed areas covered by German firms are the following: finishing materials, drop ceilings, laminated parquet and windows. At the same time, it should be noted that there are plenty of promising areas for promoting German products on the Petersburg market, products such as heat-insulation materials, ceramic tiling and roofing materials (soft roofing, metal roof tiling), as well as plumbing equipment. I hope that Baufach 2001, in which Russia is the chief foreign participant, will boost the share of Germany and leading German firms on the Russian construction market, and especially in Saint Petersburg, which is currently preparing to celebrate its tercentenary.

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