Development potential of manufacturing industry in the Voronezh region – current state and prospects

Abstract

Importance: аssessment of the developmental potential of the manufacturing industry in Voronezh Oblast – the largest region in the Central Black Earth area of the Russian Federation. The manufacturing industry plays a crucial role in the region’s economic development; however, the imposition of antiRussian sanctions in 2022 has created an extreme external environment for its functioning. Purpose: to substantiate and test a methodological approach for assessing the current state and development prospects of the manufacturing industry potential in the Voronezh Region. Research Design: to achieve the objective, the study employed cluster analysis (to group regions by the level of manufacturing industry potential), correlationregression analysis (to identify relationships between indicators and forecast trends), economic-statistical analysis (to evaluate the dynamics of indicators and identify patterns), comparative analysis (to compare regions and identify best practices), as well as tabular and graphical data interpretation for visualizing the results. Results: it has been established that Voronezh Region is part of a virtual cluster that includes regions of Russia with a medium level of manufacturing industry development potential. From 2011 to 2022, all examined indicators improved, with positive and, in most cases, stable trends. In 2019-2022, there was a significant increase in financial results, indicating profitability in manufacturing activities. However, the number of manufacturing enterprises continued to decline. The combination of these divergent trends creates favorable conditions for the establishment of new enterprises, diversification of activities, and scaling up production at existing enterprises.