Leanid Zlotnikau: It Often Happens Here – What We Earn Today, We Eat Away Tomorrow

Is MAZ able to regain its former positions?

Recently, the industrial giant has become, as they say, a buzz word.

For example, only in November, the enterprise was noted twice: in Kiev and in Kaliningrad, where the plant won a tender for the delivery of city buses, zautra.by writes.

The statistics confirms the positive dynamics of the enterprise: for eight months of this year, the Minsk Automobile Plant has increased its machinery sales by 29%. At that, it has sold by 11% more cars to the Russian market than during the same period last year.

Is MAZ able to regain its former positions?

According to economist Leanid Zlotnikau, the growth in sales is clearly not enough for the enterprise to overcome the crisis.

– It's not about the amount of buses sold for export, – the expert notes. – It’s about the profit they got.

To develop successfully, enterprises must have at least 15-20% of profitability, the interlocutor believes.

– If they have spent money on buying details abroad, paid workers – as a result, it turns to be zero, and then tomorrow it will get only worse. The enterprise must change technology, products. It requires money, investment. And it often happens here – what we earn today, we eat away tomorrow," – Leanid Zlotnikau says.

The economist recalls that in general, the Belarusian economy is experiencing a decline in investment activity.

– Over the past few years, enterprises have even been allowed to not spend money on depreciation. That is, they pay salaries, but do not invest money in the overhaul works or equipment upgrade.

The extinction of an enterprise starts long before its profitability disappears. And it happens when the investment component of the enterprise starts to decline. That's very dangerous," – Leanid Zlotnikau adds.