Influence of the activity of the city-forming enterprise on the development of a single-industry town

Abstract

Subject/topic. The article deals with the interaction and influence of the city-forming enterprise JSC «Alexandrovsky Machine-building Plant» on the single-industry city of Alexandrovsk and the Alexandrovsky district as a whole. Goals and objectives of the work. The purpose of this work is to assess the financial, economic, and production activities of JSC «AMZ» for the period 2016-2020, as well as the socio-economic development of the single-industry town of Alexandrovsk and the Alexandrovsky district for the same period. Methodology. To analyse the financial, economic, and production activities of JSC «AMZ», an assessment was made of such indicators as the dynamics of net, non-current, and current assets, accounts payable, profit (gross, from sales, before tax, and net), business expenses, and production costs. To analyse the socio-economic development of the single-industry town of Alexandrovsk and the Alexandrovsky district, an assessment of the demographic situation, the investment climate, and the development of small and medium-sized businesses was carried out. Results. It is concluded that the development and financial and economic condition of the city-forming enterprise JSC «Alexandrovsky Machine-Building Plant» directly affects the socio-economic development of the single-industry town of Alexandrovsk and the Alexandrovsky district as a whole. The city-forming enterprise is on the verge of bankruptcy. If this procedure takes place, the issue of the existence of the single-industry town of Alexandrovsk will become much more acute, since at the moment there is a significant outflow of the working-age population, especially young people. Conclusions/significance. The practical significance of this study consists in the proposed recommendations for improving the efficiency of the city-forming enterprise JSC «Alexandrovsky Machine-Building Plant». Application. The problems of the development of a city-forming enterprise, a single-industry town and the proposed recommendations can be used to improve the development strategy of both the city-forming enterprise itself (JSC «Alexandrovsky Machine-Building Plant») and the single-industry town of Alexandrovsk and the Alexandrovsky district as a whole.