According to the April 2023 results of Turkey IMSAD Monthly Sector Report, industrial production of construction materials decreased by 2023 percent in February 2022 compared to the same period of 10,3.
In the report, it was stated that production decreased in 22 of 15 sub-sectors and increased in 7 of them. It was stated in the report that production stopped to a large extent with the earthquake disaster in February, and that the effect of this negative situation on production decreased as of March.
The April 2023 results of the Monthly Sector Report, which is prepared every month by the Turkish Construction Material Industrialists' Association (Turkey IMSAD), the umbrella organization of the construction material industry, have been announced. According to the report, in February 2023, industrial production of construction materials decreased by 10,3 percent compared to the same period of the previous year. While production decreased in 22 of 15 sub-sectors in the construction materials industry, production increased in 7 of them. While the highest increase was experienced in the metal door and window sector with 35,6 percent, wood construction materials were in the second place with an increase of 23,3 percent, and electrical Lighting equipment was in the third place with 15,3 percent.
The negative effects of the earthquake started to regress as of March.
While the sub-sector, which experienced the highest decline in production in February, was iron and steel construction products with 30,8 percent, cement production ranked second with a decrease of 27,6 percent. Parquet and flooring was the third sector with the highest decline with 19 percent. Ceramic coating materials ranked fourth with 16,6%.
With the earthquake disaster, the production of construction materials primarily in the earthquake zone stopped to a large extent. There were also declines in other regions. In the report, it was stated that this negative effect of the earthquakes that occurred in February on production started to decrease as of March.
Investments to be made in the earthquake zone will activate the sector
In the Türkiye İMSAD report, which was carefully followed by the construction industry and economic circles, it was emphasized that after the earthquake disaster in February, seismicity became the most important determinant in the construction industry. In this context, new investments in housing, non-residential buildings and infrastructure in 11 provinces where the earthquake was experienced created job potential in the sector. It was also stated that the repair and strengthening activities in the region will especially revive the renewal market.
Changes in economic policies will affect the sector
In the report, it was predicted that after the general elections to be held on 14 May, many developments that will affect the construction materials industry will occur. While some of these developments are expected to be directly related to the sector, some of them are expected to be indirect developments related to economic policies. According to the report, the possibility of change in economic policies will also affect the sectors. Increases in interest rates and exchange rates are expected to limit the sectors with cost and price increases in the first stage. Again, the need for savings in the budget may limit public investments and construction. Possible increases in exchange rates will support material exports.
📩 06/05/2023 13:43