Industry of Ukraine. Paths of revival. Foundry production as the basis of the procurement base of mechanical engineering

A thorough analysis of the current state of the Ukrainian economy and the role of industry in the formation of a competitive state was presented at the International Industrial Forum 2026. The central topic of the speech was the issue of restoring mechanical engineering and foundry production as basic components of economic security and post-war development of Ukraine.

Ukraine is losing its industrial economic model

Over the past twenty years, the structure of the Ukrainian economy has changed significantly. The share of machine-building and processing industry gradually decreased, while the role of the agricultural sector, trade, and the service sector grew. These changes became especially noticeable after the 2014 and 2022 crises.

Experts emphasize that mechanical engineering has lost more than 70% of its share in the country’s gross domestic product. This trend leads to increased import dependence, a reduction in domestic production of equipment and technologies, and a decrease in opportunities for the development of high-tech industries.

Mechanical engineering is the basis of economic independence

It is mechanical engineering that creates the production base for the energy sector, transport, the agricultural sector, construction, mining, and the defense-industrial complex. The country’s ability to meet its own needs in technology, equipment, and modern technological solutions depends on the level of development of mechanical engineering enterprises.

The reduction in the production potential of the industry means not only economic losses, but also strategic risks for the state. In the conditions of global competition, countries that do not have their own production base become dependent on external suppliers of critically important products.

Foundry production is the foundation of industrial development

A separate block of research was devoted to the foundry industry. Foundry production provides the manufacture of parts and components for almost all areas of industry – from agricultural machinery to energy equipment and transport engineering.

Today, Ukrainian foundries operate in conditions of high competition, staff shortage, rising energy costs, and the need to modernize production facilities. At the same time, the industry has significant potential for development due to the availability of production experience, professional staff, and domestic demand for products.

Energy and manufacturing competitiveness

One of the key factors in industrial development remains the cost of energy resources. For metallurgical and foundry enterprises, the energy intensity of production directly affects the cost of production and competitiveness in domestic and foreign markets.

That is why modernization of production, introduction of energy-efficient technologies, and automation of processes are becoming critically important conditions for maintaining the positions of Ukrainian manufacturers.

Human resource challenge for industry

The lack of qualified specialists remains a serious problem for the industry. Enterprises are increasingly facing a shortage of engineers, technologists, foundries, and operators of modern equipment.

Resolving the personnel issue requires close cooperation between business, educational institutions, and the state. Restoring the prestige of engineering professions, developing dual education, and supporting vocational training should become part of the state industrial policy.

Ways to revive industry