11.11.2014 İstanbul
Speaking at the TİMFED Summit, TOBB President M. Rifat Hisarcıklıoğlu emphasized that low profit margins are one of the most significant problems faced by entrepreneurs. Hisarcıklıoğlu reported that total company profit for 2013 was 68 billion TRY, no increase from 2012, “On the contrary, there was a decrease of 30%. This is the gist of the problems faced by our entrepreneurs; the turnover of companies is increasing while the profit decreases.”
Hisarcıklıoğlu attended the Installation and Construction Suppliers
Federation (TİMFED) Summit. TOBB President stressed that construction is one of
the most important sectors for Turkey, pointing out that 200 sectors are
interconnected with it. Stating that the sector provides a lot of employment
for Turkey, Hisarcıklıoğlu emphasized that construction is a resource provider
for entrepreneurs.
Reporting that, according to the data from the Ministry of Industry,
total company profit for 2013 in Turkey reached 3.7 trillion TRY and went on:
“There is a 15% increase from 2012. This means that our entrepreneurs
have worked, labored and sold more goods and services. What do we have to show
for it? The total company profit for 2013 was 68 billion TRY, no increase from
2012. On the contrary, there was a decrease of 30%. This is the gist of the
problems faced by our entrepreneurs; the turnover of companies is increasing
while the profit decreases.
The construction sector has increased its turnover by 22% in 2013 in
comparison to 2012. However, net profits have fallen by 10% - add to that 10%
inflation. This means a net decrease of 20% in profitability in comparison to
2012. Sales profitability has decreased to 3.7% from 5.1%. This means that the
construction sector’s profitability is greatly exaggerated.”
- “The reasons for the decrease
in profitability are exchange and interest rates”
Hisarcıklıoğlu stated that the reasons for the decrease in profitability
are exchange and interest rates, reporting that interest losses for 2013 have
increased by 29% while exchange losses have increased by 131%. The second
problem is encountered in regards to the matter of cheques, said Hisarcıklıoğlu
and went on, “Following the lifting of prison sentences for bounced cheques,
problems have been increasing. We must once again make the cheque a trusted
tool of finance. Work is underway by the Credit Registry Bureau to this end. We
are also backing these efforts, however, we have not seen the expected support
from the real sector. We have undertaken work to this end in collaboration with
the Deputy Prime Minister Ali Babacan. We are hoping to bring a resolution to
this matter as well.”
Hisarcıklıoğlu pointed out that another issue connected to this matter
is the difficulties encountered in lowering the cost of employment as well as
producing a well trained workforce. Hisarcıklıoğlu provided information in
regards to TOBB’s efforts to address this issue in cooperation with the Labor
and Social Security Ministry, Ministry of National Education under the
Specialized Vocational Training Centers (UMEM) PROJECT.
- “Turkey 7th in world
cement production, 1st in the region”
Hisarcıklıoğlu reported that Turkey is 7th in the world in
regard to cement production, as well as being the 1st in its region
and said:
“We are third in ceramics and iron-steelworks in Europe. Fourth in
decorative paint. As of 2013, all customs gates have been passed by a Turkish
product. If I were to say this is how it would be 3 years ago, nobody would
have believed me. We have generated employment for 4.5 million people while 5
million people lost their jobs in Europe. Do not get hung up on current
problems, bring us your recommendations for solutions. I have great hopes for
the future of our country. There are no elections for four years after 2015.
The coming term will be one for reforms. The Prime Minister has shown its
signs. The sectoral transformation program has been announced. These provide
the roadmap for Turkey. We are fully committed to supporting it. We have but
one goal: Making our country one of the top 10 economies of the world by 2023.”
- “We must be prepared to deal
with any catastrophe”
Yıldız Technic University Rector Prof. Dr. İsmail Yüksek stated that
urban transformation is not a matter of whimsicality but one of necessity and
pointed out the mistakes which have been made in the planning of cities to
date.
Installation and Construction Suppliers Association (TİMDER) Chairman Kemal
Çelik stated that they aim to listen to the problems of members in the
construction sector first and provide them with solutions.