Expressing that periodic rises and falls happen in the construction sector and the sub-sectors that support it, just like any other sector in Turkey; Onur Atakay, Founding Partner of Sintek Group shared his views on the first half of 2022 and his anticipations for the forthcoming period by stating: “Construction is a locomotive sector on its own, which supports about 250 sub-branches. The slowdown or stagnation in this sector would have significant effects when considered from this point of view. However, it is possible to say that the construction sector, which is in a stagnant trend, will experience a better period in the second half of the year, if both the stable course in terms of cost and financing support and similar practices are ensured”.
A number of dynamics had an effect on the sector in the first half
Pointing out that many global and local dynamics determine the position of the sector in the first half of 2022, Onur Atakay listed these problems as changes in the global economy, increased production costs, fluctuations in the supply and pricing of raw materials such as energy, the effects of the pandemic and the nearby war, shortages in financing, high exchange rates, issues in borrowing and purchasing on the consumer side.
Positive and negative indicators will have influence on the growth of the sector
Expressing that the major problems that will have influence on the construction sector in the upcoming period will be the fluctuations in the global and local economy, inflation as a result of the high exchange rates, contractions in purchasing power, increased construction costs and borrowing, Onur Atakay added: “As companies that experience capital shortage due to the increase in costs in every sense will produce less than in previous periods, the sector may be in a decline in the second half of 2022. On the other hand, the revival of demand that came to a standstill with the pandemic, financing supports, loan supports, new areas to be created in employment, the power of investors to make use of possible potentials and the correction of the confidence-risk perception will be indicators that will have a positive influence on the future of the sector.”
Increase in costs also has an impact on turnkey projects
Stating that a similar trend is in question in turnkey projects in Turkey, which will both revitalize the domestic market and enable companies to become stronger in the international arena, and that the increase in costs constitutes an obstacle to gigantic infrastructure and superstructure projects Onur Atakay said: “Yet we can say that these projects are much less affected by short-term developments and fluctuations due to the fact that these projects have a well-established financing structure , are planned in the medium and long term, and the investment and construction periods thereof are spread over a much longer period of time. The long-term planning of all processes such as design, project design, construction and production stands out as a fundamental advantage in such projects.”
Europe and Africa present major opportunities
Pointing out that major opportunities have emerged in the European continent with the effective implementation of the United Nations Framework Convention on Climate Change, Onur Atakay said: “Besides that, the construction sector and consequently, the cement producers as our main customers have started to make investment decisions particularly with the 2.3 trillion dollar infrastructure modernization package planned by the US Government. Taking into consideration all these dynamics, we conduct our operations in Europe with our organization named Sintek BV, headquartered in Amsterdam. We will provide turnkey projects as well as project development, engineering and consultancy services in rivalry with Chinese and European competitors to our potential customers in the European market. Although our primary market is Europe, we will also provide services for the locations in the USA and Africa from our office in the Netherlands.”