The state and issues of development of the industrial sector of economy of a region amid systemic crisis

The industrial sector is the basis of stability and competitiveness of any modern economy. In particular, the products of manufacturing create conditions for increasing productivity, contribute to technological re-equipment of enterprises and a more efficient use of raw materials and power. However, the development of this sector is currently demonstrating negative trends. This can be explained by the systemic crisis in the country due to raw material exporting model of the Russian economy and the predominance of interests of the elite over the objectives of social progress. One of the consequences of such socio-economic deformations is low dynamics of production and investment promotion. The industrial sector does not have sufficient resilience to modern challenges; it is sensitive to rapid change in prices for purchased products and to reduced consumer demand for manufactured products. In such circumstances, there is an increasing threat to the stability of socio-economic development of the economy in regions where industrial activities account for a major part of the produced gross regional product. In order to objectively determine the state and problems of the industrial sector in the region, in the first half of 2016, a questionnaire survey of managers of industrial enterprises of the Vologda Oblast was conducted, the results of which emphasize the negative development trend. The study has helped identify the weak points in organizing economic activity of enterprises, determine the factors impeding the stabilization of their condition and the most common activities aimed at improving and adapting to the current economic conditions. The authors present the assessment of functioning and financial status of industrial enterprises of the region in the context of types of economic activities, identify the changes in key indicators of their activities, consider investment and innovation activity and interaction with public authorities. It has been determined that modernization prospects of industrial enterprises are associated with minimizing the influence of various negative factors including the most critical such as lack of financial resources.