Construction Sector Shifts Its Focus to Foreign Markets

Construction Sector Shifts Focus Abroad Turkey's Contractors Association (TMB) President M. Erdal Eren, commenting on 2023 growth figures announced by TURKSTAT, stated: "Although high input costs, particularly labour, remain restrictive for our sector, reconstruction efforts in the earthquake-affected regions have continued to serve as a growth driver for our industry. Labour shortages, as well as issues such as price differences and liquidation needs, still await solutions. Despite capturing significant growth in 2023 due to extraordinary circumstances, we anticipate that domestic growth in 2024 will not match 2023 levels, as no new projects have been added to the 2024 investment programme. For this reason, we believe our sector's direction in 2024 will be predominantly oriented towards international projects," he said. [caption id="attachment_159971" align="aligncenter"] M. Erdal Eren[/caption]

TMB President M. Erdal Eren evaluated 2023 growth figures announced by Turkish Statistical Institute in a written statement:

"Despite global economic challenges and political and geopolitical developments, Turkey's economy growing at 4.5% in 2023 is encouraging. The construction sector, which makes the largest contribution to employment in our country and serves as an economic engine by creating demand for over 200 sub-sectors, also grew at 7.8% in the same period, outpacing Turkey's overall economic growth. Although high input costs, particularly labour, remain restrictive for our sector, reconstruction efforts in the earthquake-affected regions have continued to serve as a growth driver. Labour shortages, as well as issues such as price differences and liquidation needs, still await solutions. Despite capturing significant growth in 2023 due to extraordinary circumstances, we anticipate that domestic growth in 2024 will not match 2023 levels, as no new projects have been added to the 2024 investment programme. For this reason, we believe our sector's direction in 2024 will be predominantly oriented towards international projects. Saudi Arabia stands out as the target country with the greatest potential for our international contracting services. Additionally, Iraq represents another target country, with the Development Road project in the coming period, as well as energy, healthcare, housing, school and hospital projects planned to be implemented in the country."