The construction materials sector’s export operations declined by 10.2 percent in 2016 and fall to $15.24 billion, according to IMSAD Turkey’s Sector Report for February. The sector’s export operations, which amounted to $21.2 billion in 2014, started to decline in 2015 and realized as $17 billion. Economic stagnation and decline in target markets, as well as regional developments led to this decline.
Of the construction materials sub-sectors, the elevators sector saw the highest increase in export operations. The elevators sector’s export operations rose by 20 percent, increasing from $42 million to $50.5 million. The sub-sector with the highest decline in export operations was the wallpapers sector, which saw a decline by 37 percent.
Annual import reaches $9.31 billion
The construction materials sector’s import operations increased in the first half of the year and started to decline in the second half. Import operations increased only by 1.9 percent in 2016, reaching $9.31 billion. The report also says that the prefabricated buildings sector, one of the sub-sectors importing construction materials, saw an increase by 127 percent in its import operations in 2016 and reached $42.4 million. The wallpapers sector, which saw a decline in its export operations, also saw a decline in its import operations by 77 percent in 2016.
Construction materials industrial production increases by 0.4% The construction materials industrial production grew by 0.7 percent in 2015 and 0.4 percent in 2016. The increase in demand in 2015 was achieved thanks to the private and public sector construction expenses. Export operations did not have any effect on the increase.
The private and public sector construction expenses led to an increase both in demand and industrial production in 2016 as well. Export operations had a negative effect on the demand.
This uncovered different trends in 2016 in terms of construction materials industrial production. Of the 26 sub- sectors, 15 of them saw an increase in production compared to last year. The remaining sectors, on the other hand, saw a decline compared to last year.
Target market construction sectors are expected to grow
The construction sectors of the energy exporting countries experienced economic slowdown or shrinkage for two consecutive years. However, the construction sectors of these countries are expected to grow and gather strength again in 2017. Russia’s construction sector is expected to grow by 1.0 percent in 2017. Iran’s construction sector will gain momentum when the embargoes are lifted and the fuel supply increases. Qatar continues to enjoy a rapid growth. A growth by 2.2 percent is expected in Saudi Arabia while UAE expects to grow by 3.0 percent.
Construction sectors of the developed countries also continue to grow. In 2017, construction sectors of the U.S., Germany, and the U.K. are expected to grow by 3.6 percent, 1.5 percent, and 2.9 percent respectively. Canada’s construction sector is expected to grow by 3.0 percent.
The great construction country China, on the other hand, saw a significant slowdown in its construction sector in 2016. Still, the Chinese construction sector is expected to grow by 3.5 percent in 2017. As for the Indian construction sector, it is expected to grow by 5.7 percent in 2017.
Overseas contracting services decline in 2016
The report also included data about overseas contracting services. Despite the political and economic fluctuations in the world, the Turkish contracting sector managed to undertake projects worth over $20 billion every year from 2007-2014. The project undertaken in 2013 had the highest project price with a value of $30.2 billion. During 2014 and 2015, the performance of overseas contracting works started to weaken and in 2016 a significant decline was observed. The amount of the 99 undertaken projects only reached $11.1 billion whereas the amount of the projects undertaken in 2015 was $20.16 billion. The developments experienced in 2015 and 2016 negatively affected the overseas contracting services.
