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Current Construction Industry Development in Russia - Dissertation Example

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The dissertation "Current Construction Industry Development in Russia" focuses on the critical analysis of the current business conditions within the tunneling and underground construction in Russia, discussing the ability of various potential entrepreneurs investing in this industry…
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Current Construction Industry Development in Russia
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This excitement has been an impetus to the rapidity with which the underground construction/tunneling industry has grown and also the extent to which it has attracted a lot of attention from key players within the construction industry (Beer, 2009). Notably, emerging countries such as China, India, Russia, and Brazil which are experiencing high levels of economic growth have been the melting pot of major infrastructural improvements and developments, with underground construction being at the core of these developments. Underground constructions occur in a wide array of sectors and areas. These include highway construction, sewerage system, metro/subway systems, electricity cables, and transmissions systems, nuclear power facilities, water systems, flood management systems, natural disasters, and war underground hiding bunkers, and hydropower plant systems (Beer 2009).
With the recognition of the benefits for the countries that come along with underground construction, such as reducing congestion, lowering environmental degradation, reducing the pressure put on the land, and efficient utilization of strategic resources, many countries have increasingly invested in this form of construction (Brown, 2001; Beer, 2009). The high business opportunities in the emerging countries within the construction industry have attracted a plethora of construction entrepreneurs into these markets. Russia in specific has attracted a lot of attention not only due to its growing economy but specifically also due to the upcoming events:
1) The high profile Winter World Olympic Games to be held in Sochi, Russia in 2014, and the
2) 2018 Fifa World Cup, which has seen the development of several high scale underground systems (Kral 2009; Deloitte, 2012).
However, the current business climate for underground construction in Russia must be understood clearly to enable effective decision-making for the wide array of potential investors (Datamonitor, 2011; Deloitte, 2012). The business environment may present several challenges to various investors, both local and foreign, who seek to do business in underground construction. The industry conditions and entry barriers in terms of economic, political, and financial factors that impact a business need to be taken into consideration.
Growth in underground construction has increased in the current era due to the realization of its several advantages. While talking about the benefits of going underground Paul (2004) stated that going underground has several benefits. The author stated that with regards to accommodating the growing urban population, underground space provides several facilities such as environmentally safe and modest urban transit systems, shopping facilities and car parks, etc. With regards to isolation, underground space is a natural shelter for severe weather; it provides a safeguard against climate, earthquakes, noise, etc which could be possible threats in case of severe human activities like explosions and/or natural disasters like hurricanes.

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