The construction materials industry survived the contraction of the second quarter

The construction materials industry survived the contraction of the second quarter
15 October 2020

The construction sector, which is one of the locomotives of Turkey's economy, stayed afloat with home sales during summer. Construction materials, which are the main inputs of the sector, started to grow in July with the effect of the demand accumulated after the contraction in the second quarter and it grew above the expectations and surpassed the months of June and July 2019.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - According to İMSAD data; In the first 7 months of 2020, imports of construction materials declined by 6% compared to the previous year to 3.2 billion dollars. Considering the export figures, in the first 7 months of 2020, the exports of construction materials reached 11.4 billion dollars with a 7% withdrawal. Evaluating the effects of the increase in the domestic production rate of construction materials on the construction industry, Yapı General Manager Devrim Ünal Saygın said, “Even though there was a decrease compared to last year, the construction materials industry was self-sufficient by providing a cost advantage with the support of domestic production and the online construction material procurement process that comes with digitalization.”

Additional customs duty on imports of construction materials is extended

Stating that the state also supports domestic production for the increase in job opportunities of construction material producers due to the pandemic, Devrim Ünal Saygın said, “The additional customs duty period on the import of construction materials, which was first implemented on April 18 and then extended once, was extended again until the end of the year by the decision published in the “Official Gazette” on September 24, 2020. This decision is an important incentive for domestic production. An increase in the rate of locality will allow the development of the construction materials industry and thus the citizen to have more affordable housing with a decrease in the cost of housing production.”

7.5% increase in construction materials since the beginning of the year

According to the data of Istanbul Chamber of Commerce (ITO), wholesale prices in the construction materials group increased by 7.53% during the January-September 2020 period in Istanbul. Stating that the solution for increasing costs in the construction sector is digital platforms, Saygın said, “Despite the increase in the domestic rate, inflation in construction materials is growing due to global reasons. Especially construction firms, material suppliers and contractors are looking for new ways to reduce construction costs instead of conventionally buying only from known manufacturers. With the development of e-commerce in our country, shopping through digital channels started to provide cost advantages for the construction sector. During the pandemic period, we saw that companies that could not carry their construction materials sales to digital channels experienced problems, and faced the danger of closing because they could not reach sufficient number of contractors for being unable to create an effective sales strategy. However, technological partners such as Yapı brought a new breath to the construction industry."

A performance bridge between suppliers and contractors

Stating that as Yapı, they follow an average of more than 20 thousand construction projects per year, Devrim Ünal Saygın also announced the list of construction materials where the most number of offers were received through their platforms. Saygın said, “By building a performance bridge between suppliers and contractors, we support both the purchasing side and the selling side. In this way, construction companies and construction material suppliers can reach the supplier companies and receive offers by requesting all kinds of goods and services in their projects from the project stage to the completion of the construction. In this way, long and costly purchasing processes in the past years can be completed at more affordable prices and in a short time. As Yapı, we have received more than 4000 wholesale construction material requests since the beginning of the year and our member suppliers have reached these requests effortlessly and offered their prices. Thus, our domestic producers and suppliers delivered their products to contractors using our platform and contributed to the increase of localization and reduction of costs in the construction sector."

Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55