Russia’s aggression against Ukraine and the war that has been going on for the fourth month now have negative consequences for social and economic life. Almost all Polish companies have felt its effects, according to a study by the Polish Economic Institute.
At the beginning of March, 42 percent. enterprises surveyed by the Polish Economic Institute and BGK admitted that Russia’s aggression towards Ukraine may, to a large or very large extent, threaten the conducted activity. At the same time, 23 percent. did not share such fears. Although entrepreneurs saw the threat, they described the degree of its impact on their business as very small or small.
The war took its toll on almost every company
The research conducted on July 1, 2022 shows that the vast majority of companies (94%) felt the negative, weaker or stronger impact of the war in Ukraine on at least one area of their activity.
The effects of the war affect Polish business regardless of the size of the company or the type of business. The ongoing war translates into great uncertainty in the economic situation. Since the outbreak of the war, 75 percent companies surveyed by PIE indicate it as a barrier that strongly hinders running a business.
What problems do Polish companies experince?
The effects of war translate into companies’ reactions. In the face of threats and dynamic situations, they are often forced to take specific actions. One of them is raising prices for products or services offered by enterprises.
PIE research shows that for 70 percent. of companies, decisions related to raising prices were largely influenced by the war. Small companies (81%) decided to increase prices more often than large ones (63%). Most often, prices were raised by commercial companies (79%) and TSL (transport-forwarding-logistics) (74%).
According to 63 percent of entrepreneurs, the war strongly influences higher costs of conducted activity , and the larger the enterprise, the more companies indicate its strong influence on higher costs. In micro-enterprises the share of such enterprises is 57%, and in large – 69%.
Most often, the strong impact of the situation abroad on the increase in operating costs is indicated by trade companies (70%), but also manufacturing and service companies (65% each), TSL (64%) and construction companies (53%).
Undoubtedly, the war contributes to the supply problems. Among the surveyed companies, 36 percent indicate a strong impact of war on disruptions in supply chains. They are more common in trade (42%), construction (41%) and TSL (40%) companies.
At the same time, nearly every fifth company (18%) does not see the impact of the war on supply chains, in particular service companies – almost every third (30%) does not see such an impact.
Difficulties with cooperation and demand
Quite different opinions of entrepreneurs concern the issue related to the influence of war on cooperation with contractors . A strong influence on the deterioration of cooperation is indicated by 19 percent. enterprises, and no influence – 26 percent.
The differences are more visible in the sectors. In trade, more companies indicate a strong influence of the war on the deterioration of cooperation (27%) than no influence (22%).
In production, every fifth company believes that the war has significantly worsened cooperation with contractors and every fifth company indicates that the war has no influence on such cooperation. On the other hand, in construction, services and the TSL sector, opinions prevail that war has no influence on cooperation with contractors.
Every fourth company indicates that the war strongly influenced the insufficient demand for products or services offered by the company. Problems with demand are indicated more often by micro-enterprises (26%) than by large enterprises (18%).
Trade companies (34%) and construction companies (30%) perceived the most problems with demand as a result of the war. On the other hand, 27 percent companies from the TSL sector do not see the impact of the war on the demand for the services they offer.
War is undoubtedly a negative phenomenon. Although it takes place beyond our eastern border, its consequences are visible in Poland, also in Polish companies.
No one can predict how long the conflict will last, but what he has already destroyed will not be easy to rebuild. Before the war with eastern markets (Russia, Belarus, Ukraine), companies that run business must modify or even completely change their business models.