Union of Chambers and Commodity Exchanges of Turkey

Hisarcıklıoğlu attended the Installation and Construction Suppliers Federation (TİMFED) Summit. TOBB President stressed that construction is one of the most important sectors for Turkey, pointing out that 200 sectors are interconnected with it. Stating that the sector provides a lot of employment for Turkey, Hisarcıklıoğlu emphasized that construction is a resource provider for entrepreneurs.

Reporting that, according to the data from the Ministry of Industry, total company profit for 2013 in Turkey reached 3.7 trillion TRY and went on:

“There is a 15% increase from 2012. This means that our entrepreneurs have worked, labored and sold more goods and services. What do we have to show for it? The total company profit for 2013 was 68 billion TRY, no increase from 2012. On the contrary, there was a decrease of 30%. This is the gist of the problems faced by our entrepreneurs; the turnover of companies is increasing while the profit decreases.

The construction sector has increased its turnover by 22% in 2013 in comparison to 2012. However, net profits have fallen by 10% - add to that 10% inflation. This means a net decrease of 20% in profitability in comparison to 2012. Sales profitability has decreased to 3.7% from 5.1%. This means that the construction sector’s profitability is greatly exaggerated.”

- “The reasons for the decrease in profitability are exchange and interest rates”

Hisarcıklıoğlu stated that the reasons for the decrease in profitability are exchange and interest rates, reporting that interest losses for 2013 have increased by 29% while exchange losses have increased by 131%. The second problem is encountered in regards to the matter of cheques, said Hisarcıklıoğlu and went on, “Following the lifting of prison sentences for bounced cheques, problems have been increasing. We must once again make the cheque a trusted tool of finance. Work is underway by the Credit Registry Bureau to this end. We are also backing these efforts, however, we have not seen the expected support from the real sector. We have undertaken work to this end in collaboration with the Deputy Prime Minister Ali Babacan. We are hoping to bring a resolution to this matter as well.”

Hisarcıklıoğlu pointed out that another issue connected to this matter is the difficulties encountered in lowering the cost of employment as well as producing a well trained workforce. Hisarcıklıoğlu provided information in regards to TOBB’s efforts to address this issue in cooperation with the Labor and Social Security Ministry, Ministry of National Education under the Specialized Vocational Training Centers (UMEM) PROJECT.

- “Turkey 7^th in world cement production, 1^st in the region”

Hisarcıklıoğlu reported that Turkey is 7^th in the world in regard to cement production, as well as being the 1^st in its region and said:

“We are third in ceramics and iron-steelworks in Europe. Fourth in decorative paint. As of 2013, all customs gates have been passed by a Turkish product. If I were to say this is how it would be 3 years ago, nobody would have believed me. We have generated employment for 4.5 million people while 5 million people lost their jobs in Europe. Do not get hung up on current problems, bring us your recommendations for solutions. I have great hopes for the future of our country. There are no elections for four years after 2015. The coming term will be one for reforms. The Prime Minister has shown its signs. The sectoral transformation program has been announced. These provide the roadmap for Turkey. We are fully committed to supporting it. We have but one goal: Making our country one of the top 10 economies of the world by 2023.”

- “We must be prepared to deal with any catastrophe”

Yıldız Technic University Rector Prof. Dr. İsmail Yüksek stated that urban transformation is not a matter of whimsicality but one of necessity and pointed out the mistakes which have been made in the planning of cities to date.

Installation and Construction Suppliers Association (TİMDER) Chairman Kemal Çelik stated that they aim to listen to the problems of members in the construction sector first and provide them with solutions.