The IMSAD Association presented the October results of the industry report on Turkey for October 2022. This report is closely followed by the players of the construction sector, together with representatives of other important spheres for the state.
Due to the weakening of the global economy as a whole and some recession in the development segment, the production of building materials has decreased; it is expected that the decline in their supply volumes will continue in the coming months.
Judging by the summer results, in June 2022, production volumes did not change relative to the figures of the same month of the previous year; in July, a drop in production by 7.3% was recorded, in August – by 0.3%. As a result, the progress of the first months of the year was leveled: the increase in production for the first eight months of the year was only 1.2% compared to January-August 2021. However, despite the projected continuation of the recession, analysts expect that, in general, by the end of the year, it will be possible to maintain production volumes of building materials similar to those of 2021.
As for different types of materials, the situation is different for them: reinforcement, cement, ready-mixed concrete, bricks and tiles have been supplied less, which experts explain by a decrease in the volume of new construction. But in the segment of the manufacture of interior products in general, there is an increase in indicators. Or, for example, with a relatively high growth in the production of ceramic coatings, plumbing, glass, parquet and floor coverings, processed stone, wooden building materials, there is a decrease in the production of metal doors and window structures.
There has also been a slight decline in the export market as a whole, which, according to experts, will last for another two or three quarters. At the same time, new large-scale projects are expected to appear on the domestic market – residential complexes and not only - due to a number of initiatives of the government and financial sector players: a nationwide project to provide social housing, new lending conditions from banks, one-time special promotions, tax incentives, etc. This will help to maintain demand, as well as the level of production in the building materials industry.