We’ve seen positive news for Turkey’s building industry – the country’s largest sector – over the past few years and growth is continuing in 2018.
Local production and exports of building materials have seen a steady rise in recent years, according to IMSAD, the Association of Turkish Construction Materials Producers. It’s the same story with imports, which did see a slight dip in 2017, but a further increase is expected in 2018. Total market size in 2017 was $52.5m USD, and it’s predicted to rise to $55.1m USD in 2018.
Delving a little deeper, we took a look at some of the key building materials currently being used on the Turkish market and how they’re faring.
Insulation and structural chemicals
Imports of insulation and structural chemicals reached $797m USD in 2017, most of which came from Germany, followed by China, Belgium, France, and Italy. This year, we’ve seen an 18% increase in insulation material and 12% increase in building chemicals imported into Turkey from January-August.
With stricter Property Insulation Regulations coming into force in Turkey in 2020, the insulation sector of the market looks set to strengthen in the coming years.
International companies on the market are expanding, as seen by Austria’s Austrotherm opening its third expanded polystyrene (EPS) plant in Turkey, this time in Ankara.
In terms of structural chemicals, the Taiwan Cement Corporation has joined forces with Turkish company OYAK Çimento A.Ş. as part of its efforts to expand internationally, choosing Turkey as a strategically important market.
Façades and roofing systems
Imports of façades (aluminium and PVC) and roofing systems reached a total of $116m USD in 2017, according to the Turkish Statistical Institute (TUIK). These came primarily from Germany and China, followed by other European countries. In this sector, exports are also strong, with Iraq, Turkmenistan, Germany and the UK key export markets for Turkey.
Construction materials
Imports of key construction materials reached $5.8m USD in 2017, a slight decrease of 0.3%. Within this sector, the leading material was electrical materials, according to TurkStat.
However, 2018 is looking a great deal more successful: from January-August, imports of aluminium construction materials rose 33%, iron and steel construction components 3.6%, and brick 6.8%.
Building machinery
Imports of building machinery reached $3bn USD in 2017. Imports came primarily from China, followed by Germany, Japan, Italy, and South Korea. A number of international building machinery firms have entered the Turkish market with a view to accessing the surrounding region.
Japanese construction machinery firm Sumitomo told Invest in Turkey, “We aim to make Turkey a regional base for Sumitomo Construction Machinery, running our operations in Iraq, Iran, Azerbaijan, Georgia, Kyrgyzstan, Turkmenistan and Uzbekistan through our subsidiary in Istanbul, TSM Global Turkey Sumitomo Construction Machinery.”
Flooring & Wall Covering
The Turkish Statistical Institute reports the category ‘PVC, vinyl floor, wall and ceiling cladding’ made up the majority of imports of flooring and wall cladding in 2017 – amounting to $88 million USD. This was followed by laminated parquet flooring – $40 million USD – and ceramic floor and wall cladding – $32 million USD.
TurkStat’s figures also show that imports of paint and varnish rose 13% from January-August 2018.
How can you benefit from these promising statistics?