Development trends of light industry of the Khmelnitsky region

Abstract

Background. The issue of light industry engaged in scientists like O. Lysycja, S. Sokolenko, N. O. Advokatova, that paid attention to the development of light industry in Ukraine and the problems it faces. The aim of the article is to analyze the current state of light industry in Khmelnitsky region, and research development trends of the industry.
Material and methods. General scientific and special methods of learning economical process were used. Trend line was implied to show graphically data change and forecast analysis. Studying clusters as institutional category enables to revise every participant of territorial and industrial union formation of potential of regional economy as an open social and economical system.
Results. Speaking of light industry in Khmelnitsky one can note a positive trend, particularly from 2005 to 2010 the absolute increase in the share of light industry was 0.8 %. Unfortunately, in Ukraine share of light industry is growing due to the deteriorating performance of other industries, but not at the expense of quality upgrade of the industry.
Now there are 60 small and medium enterprises in Khmelnitsky region, where almost 2500 people work, 150 workshops, the work is organized by private entrepreneurs.
But there are unprofitable enterprises. Linear trend with certainty approximation 0.8546 shows that after five years the number of unprofitable enterprises will increase to 60 %, which is extremely negative indicator. It is more reasonable to use polynomial trend, because as we know the value of reliability approximation of 0.9–1.0 indicates that this feature can be used to predict the outcome. According to it, if maintaining the dynamics, by 2015 the number of unprofitable enterprises can be more than 90 %, indicating the complete destruction of the industry.
Conclusion. So, today light industry in Khmelnitsky region is in crisis. Therefore, it requires active support from the state, which reduces the tax burden, improving the investment climate and activating innovation. Moreover, special attention should be given to reducing the cost and improving the quality of production due to its renovation and modernization.