Union of Chambers and Commodity Exchanges of Turkey

The increasing housing demand in Turkey, urban transformation, expectation of increase in direct foreign investment, investment of infrastructure for renewable energy and big energy transfer plans that is passed through our country will increase the growth of housing and the infrastructure construction. It is expected that neighbor countries will accelerate their infrastructure investment.

 

Turkey Building Material Sector Report which assess the Turkey’s construction and construction material sector was announced in the press conference organized in Swiss Hotel in 16th of February 2011. The president of TOBB M.  Rifat Hisarcıklıoğlu, The president of Turkish Ceramics Federation Zeynep Bodur, the president of Association of Turkish Building Material Producers Hüseyin Bilmaç, the president of the Federation of Building and Plumber Materials Producers Serdar Dönmez and Deloitte Turkey Board Member M. Sait Gözüm and  sectoral NGO’s and firms  attended the conference.

 

Opportunity gates for the sector

At the meeting in his opening speech TOBB President Hisarcıklıoğlu reminding that construction sector had grown 18.4 percent in the first 9 months of 2010 added “Two opportunity gates is opened part way before the construction sector. The first one is domestic. Even though there was an average of 5 percent of growth rate estimation in the Turkish construction sector, now with the recent trend we are expecting over 8 percent of growth rate. Following the Asian-Pacific region the country with the fastest growing construction sector estimation is Turkey. The second window of opportunity is the near geographies. New markets on the field of construction are opening in Eastern Europe, Turkish Republics, Middle East and Northern Africa regions. We are the one country which will best use the potential in these markets. Turkey and the surrounding countries should seize this opportunity.”

 

Stating that in order for building material manufacturers to increase efficiency in these markets not only marketing but also building production facilities is needed, Hisarcıklıoğlu explained “Eastern Europe, Russia, Northern Africa and Middle Eastern countries are newly constructed. And the key for the life quality of these constructions depend on Turkish building material manufacturers. We need to be aware of this fact and become more active in these regions.”

 

Explaining that the sector has an important position in terms of production capacity in near geographies and Europe, TOBB President compiled some examples as; “In cement production we rank the seventh place in the world but in the periphery geography we are the first. In ceramic in Europe we rank the third place nevertheless we are the second in this geography. Again in this geography we are the second in decorative paint and third in iron and steel production.” 

 

 

Tunisia and Egypt will not affect

 

Hisarcıklıoğlu stressed that Tunisia and Egypt events won’t affect the market share of Turkish Construction Sector. And Hisarcıklıoğlu said:

 

“We think that trade and investments are long term without holding up the temperature of the development.  Especially Tunisian and Egypt in this region founding administrations which are more sensitive to the public wishes, pearlier, accountable and closer democratic management style raise the standard of living of those counties. People will be more confident in the future. Thanks to this; more efficient cooperation opportunities will arise in terms of trade and investment.”

 

 

Energy Efficiency Mobilization

 

President of IMSAD emphasize the importance of energy efficiency mobilization started at the building sector considering Turkey as one of the energy importer countries and he specified that Turkey should focus on energy efficiency at industry and buildings. Mr. Bilmaç indicates the Works has been done on the finance of energy efficiency under the Association and he gave reference to the report and said that there is a need in Turkey to create suitable and creative solution for both energy efficiency at industry and buildings by evaluating the legislation prepared by countries on energy finance and institutional structuring done both in this fields, financial support, tax incentives etc. Given in these countries.

 

As one of the most important determinations of the report is the insufficient level of cooperation in Turkish Construction Materials Sector, Mr. Bilmaç requested the development of the corporation and proposed the establishment of the Energy Agency and the Energy Efficiency Center. Mr Bilmaç intensified that building sector as the biggest employment provider in Turkey and when the working conditions and institutional level considered in this sector, sector is insufficient to get interest of the skilled human resource and it should catch up skilled labor. 

 

Transition from production-oriented to technology-oriented

 

Speaking at a press conference about the report, Turkey Ceramics Federation (SERFED) President Zeynep Bodur said it is a must to pass from production-oriented to technology-oriented system for sustainable competitive power of Turkish building materials sector. Okyay said “Two major steps need to be taken to enhance Turkish innovation capability. First is leading global companies should use Turkey as an R&D base and the second, it must be settled the innovation structure in Turkey.

 

Okyay who emphasize branding is a very important subject for competitive power, said “Creating a brand is long-term challenge. I can say that on the basis of our experience as an industrialist, creating a brand or protecting the power of created brands requires continous investment. We, as Kale Company, are looking from customer side to our business, for protecting our brands in construction sector.”

 

Change in sale and distribution channels

 

TIMFED Building Materials Suppliers’ Federation President Serdar Dönmez, who shared the data of report’s sale & distribution part with press / media, stated that Dynamics, which will direct the sector for five years, make change mandatory for building material suppliers as well as sale & distribution channels. Dönmez emphasized the importance for vendors to get expertise on exhibited product categories and offer the product with service. Dönmez stated that it is inevitable for a number of vendors to get together and form more powerful dealerships against the growing construction market channel and strong manufacturers. Dönmez also explained that as TİMFED, they make education activities on topics like marketing in sale and distribution channels, trademark management, supply chain management, human resources management.

 

 

For The Report Special Questionnaire Has Been Made

 

Board Member and partner of Deloitte Turkey M. Sait Gözüm give detailed information about the Turkey Building Materials Sector Report and stated that they have served a large number of companies of construction and building materials sector and they closely follow the development of the sector. Stressing that they have weight with all stakeholders in the sector proposals for the development, Mr. Gözüm gave the following information about the research method:

 

• We worked face to face and through the questionnaire with the 16 sub-sectors representative of associations 

• For Sales and distribution channel, construction markets and seller distributor channel we talked to representatives.

• Additional interviews conducted with senior managers of leading companies.

• Meetings have been held in the fields of construction, architects and consulting firms and association, which are important for the sector.

• In addition, for real estate investment companies and recent consumer trends, we benefitted from Deloitte and some other resources.