Musical instrument manufacturers are cutting production and exports

Some Russian musical instrument factories are reducing production due to difficulties with the supply of components and materials, others are exporting abroad, which previously accounted for up to 50% of their revenue. The Ministry of Industry and Trade plans to revise the industry development strategy until 2030, which was approved in 2021. Market participants hope that the industry will be included in the register of “creative industries” – this will allow them to receive additional grants.

Russian manufacturers of musical instruments interviewed by Kommersant note difficulties with the supply of foreign components to the Russian Federation, logistics, and expansion of production space. Thus, at the Accord piano factory, the production of grand pianos over the nine months year-on-year decreased by 40%, to 22 units, and upright pianos – by 17%, to 195 units. “Due to irregular supplies of European components (mechanics, keyboards), they had to be replaced with Chinese ones,” says Ekaterina Eliseeva, commercial director of the Accord factory. “In terms of materials, Italian varnishes are the most important, and here we are gradually switching to other manufacturers,” she added. Accord plans to take advantage of government support: localize spare parts for pianos and grand pianos using a program to stimulate the production of components.

Resonance Harps (Russia’s only manufacturer of concert pedal and lever harps) said that they maintain an average production schedule: in nine months the company produced about 30–45 pedal harps and about 70 lever harps. However, they noted that supplies of instruments to the EU have practically ceased. The share of exports in the company’s revenue since 2019 has been 50%, harps have been supplied to the UK, Japan, Australia, the Czech Republic, France, the USA and other countries, said the company’s general director Andrey Martynenko. He explained that the current problems with exports are caused by restrictions on bank transfers.

At Balalaiker (which produces balalaikas, hurdy-gurdy wheels and musical accessories), productivity increased by 23–24% in the nine months year-on-year; the manufactory produced 2.6 thousand units of instruments at the beginning of the third quarter, the company said. A factory representative said that some of the mechanics had to be replaced with Chinese ones. But the main thing is that the company does not have enough production space. “This is very constraining, and we cannot get an industrial mortgage,” the company says.

The Ministry of Industry and Trade told Kommersant that they have not yet received any requests from manufacturers of musical equipment to expand the list of products as part of import substitution. The ministry added that for the development of the industry in 2021, a strategy for the development of the instrument and musical equipment industry until 2030 was approved, as well as an action plan for its implementation until 2024. “But given the changes in key markets, the political situation, as well as macroeconomic indicators, the strategy indicators and support measures will require adjustments,” the ministry noted. This concerns indicators characterizing the export of Russian industrial products, the Ministry of Industry and Trade clarified.

Market participants hope that the industry will be included in the register of “creative industries,” which should significantly simplify the application for support programs.

Yulia Yurasova