Category: Fair

Hüseyin Taklacı, the President of the Turkish Woodworking Federation (TAİF), stated, “We aim for a 10% growth and an export target of 9 billion dollars in the wood and forestry products sector in 2025.” Taklacı, who is also the Chairman of the Board of the Elmadağ Furniture Industrial Organized Industrial Zone (OSB), shared his thoughts with Anadolu Agency on the furniture sector’s outlook for 2024 and its goals for 2025.

Taklacı mentioned that over the past 15-20 years, the number of medium and large-scale enterprises in the furniture sector has increased, along with small-scale businesses, and that there are over 38,000 firms in the industry, employing approximately 380,000 people.

He pointed out that Turkey’s total exports were approximately 263 billion dollars in 2024, with 14.3% of this coming from wood and forestry products. The wood and forestry products exports, which amounted to 379 million dollars in 2000 and were limited to a few countries, increased to 2.9 billion dollars in 2010, showing significant growth over the last 20 years. Taklacı noted that in 2024, approximately 7.9 billion dollars of wood and forestry products were exported to 216 countries, and that the target for 2025 is a 10% growth and 9 billion dollars in exports.

He also provided information about furniture exports in 2024, saying that the largest exports were to Iraq, the United Kingdom, the United States, Libya, Germany, Morocco, Iran, France, and Romania. He emphasized that countries like the United States and the United Kingdom, where exports increased, signify growth not only in the Middle East but also in European and U.S. markets.

Taklacı noted that the furniture sector grew in line with the country’s general economy and stated, “Due to the decrease in construction activities last year, it was a year of rest and recovery for the furniture sector. In 2024, with the reflection of interest rates on the sector, markets had the opportunity to breathe, and producers focused on different designs in production. This year, with the Central Bank’s interest rate cuts, we expect easier access to credit, the construction sector to recover, and consequently, the demand for furniture to rise. We also anticipate that the wedding loan announcement will further increase demand. Therefore, we believe that the furniture sector will continue to grow in 2025 with new designs and models.”

Taklacı emphasized that the furniture sector is one of the most advantageous sectors in terms of added value and local production rates. He explained that the raw product, which costs around 1 dollar per kilogram, achieves an added value of 3.7 dollars in mass-produced factory items and nearly 10 dollars in handmade products. He also pointed out that the local production rate of final products exceeds 88%, and this could reach 99% with an increase in the production of lighting, electronics, metal, plastic, hardware, and chemicals.

Taklacı noted that the global furniture industry is expected to grow at an average annual rate of 8.2% until 2026, reaching an economic size of 940 billion dollars. In Turkey, the goal is an average annual growth rate of 10% and an economic size of 29 billion dollars by 2030.

He mentioned that the Turkish furniture sector, which ranked 36th in the world 20 years ago, has passed many competitors over the years and has risen to the 8th position in exports. Taklacı concluded by stating, “The Turkish furniture sector stands out globally for its craftsmanship. If the necessary opportunities are provided to our producers, the Turkish furniture sector can enter the top 3 worldwide.”

The Turkish furniture, paper, and forest products sector recorded an increase of 1.4% in the first month of 2025, reaching $610 million in exports. AKAMİB, on the other hand, saw a 2.8% increase with $73.2 million in exports.

The sector, which has shown growth in target markets, particularly made a strong start in the U.S. market, while Mediterranean companies saw a 50% increase in exports to Syria, where commercial relations have been revitalized. The Turkish furniture, paper, and forest products sector has started 2025 positively.

Closing the previous year with a 1% decrease, the sector achieved $609.8 million in exports in January 2025, marking a 1.4% increase. The Mediterranean Furniture, Paper, and Forest Products Exporters Association (AKAMİB) exceeded the sector’s overall growth, achieving a 2.8% increase with $73.2 million in exports in January.

The top five successful markets for the sector’s January exports were Iraq, the United Kingdom, the U.S., Germany, and Libya. Within the top 10 markets, exports to the United Kingdom increased by 37.6%, to Georgia by 27.4%, and to Libya by 24.3%. The sector saw a 3.4% growth in the U.S. market, which is one of the target markets.

In AKAMİB’s January export performance, Iraq was the leading market, followed by Germany, Syria, France, and the U.S. Among the top 10 markets, exports to the U.S. increased by 51%, to Syria by 50%, and to the United Kingdom by 45%.

Evaluating the sector’s January performance and expectations for 2025, AKAMİB President Onur Kılıçer made the following statements: “2024 was a challenging period for our sector. The pressure on the exchange rate and the widening gap between exchange rates and inflation negatively affected our price competitiveness, leading to a decline in our export figures.

However, despite all these challenges, our producers and exporters worked tirelessly throughout the year to maintain their competitive strength. We see 2025 as a period of recovery for our sector. The decrease in interest rates and the gradual improvement in access to financing are significant.

The expansion of our government’s production and export-oriented support programs will enhance the competitiveness of our companies. By taking steps to support exports, we can achieve even stronger momentum. Our goal is not just to grow in numbers, but to establish a permanent and sustainable growth model, elevating the Turkish furniture sector to a stronger position on the global stage.”

The construction sector has always stood out as a critical industry due to its economic size and contribution to employment. As we enter 2025, the steel market continues to play a vital role for the sector, with global and local economic developments having a significant impact on construction steel prices and demand.

Impact of Global and Local Economic Developments on Steel Prices

In 2025, inflation and interest rate policies in the global economy are expected to directly affect steel prices. The interest rate decisions of the Federal Reserve and the European Central Bank will be decisive for steel demand, while the trend in China’s industrial production will also shape prices. Locally, investments in large construction projects and urban transformation efforts by the Turkish economy will impact steel prices. Additionally, exchange rate fluctuations, as well as the import and export balance, will play a critical role in determining prices.

How Will Construction Steel Demand Shape in 2025?

In 2025, construction steel demand will be shaped by demands from various sectors such as housing, infrastructure, and industrial projects. Urban transformation projects and the rebuilding process in earthquake-affected regions will be key factors driving the demand for construction steel. Additionally, green building practices and the use of sustainable materials may diversify steel demand.

Contribution of Large Construction Projects in Turkey to the Sector

Turkey is a key market supporting the construction sector with its mega projects. Ongoing and planned large projects for 2025 include:

• Kanal Istanbul Project
• Airports and logistics centers
• Railway and metro projects
• Rebuilding projects in earthquake zones

These projects will drive steel demand and create activity in the sector.

Proemtia’s Advantages and Steel Prices

Proemtia stands out with the advantages it offers to the construction sector. The platform provides access to current steel prices, protecting companies from price fluctuations and offering cost advantages. Through new supply chain management models brought about by digitalization, construction materials are being sourced more efficiently.

The Association of Construction Material Manufacturers (İMSAD) has published its December Sector Report.

According to the report, the construction sector is expected to grow by 5% in 2025, following an 8% growth in 2024.

The report states: “In 2024, the construction sector shows an average growth of 8.0%. The high growth in the construction sector is mainly driven by activities in earthquake zones, public investments in infrastructure and social facilities, local government investments, and urban transformation activities. Despite tight policies and limitations on domestic demand implemented in 2024, the construction sector still achieved high growth.

In 2025, tight monetary policies will continue to be applied throughout the year to combat inflation. In particular, tight monetary policy will be effective. However, despite this, the construction sector is expected to grow by an average of 5.0% in 2025. The high growth in the construction sector in 2024 has not been reflected in the construction materials industry production. Stocks have mostly been used. However, the demand generated by the growth in the construction sector in 2025 is likely to positively impact industrial production as well. A limited recovery is expected in the renovation market.

Considering the potential impacts of economic policies and the 2025 budget and annual program, the construction sector is expected to grow by 5% in 2025. Investments in infrastructure in earthquake zones will contribute 2 percentage points to construction sector growth. Urban transformation activities will contribute 1.5-2.0 percentage points. Other public investments will contribute 1.0 percentage point. Private sector activities, particularly in the second half of the year, are expected to contribute 0.5-1.0 percentage point. Based on these expectations, construction sector growth between 5-6% is likely in 2025. Developments in Syria could also positively impact the construction sector.

Construction Cost Increase Slows Down As of October 2024, construction costs have increased by 37.94% year-on-year. The rate of increase in construction costs continues to slow down. Material costs have risen by 30.67%, while labor costs have risen by 55.62%. The slowdown in cost increases to 25% could stimulate new construction starts.

Construction Sector Confidence Index Rose by 0.9 Points in December Following an increase in November, the construction sector confidence index rose again in December, reaching 85.6 points. After a long downward trend in the confidence index, the downward trend halted in November, and the index reversed upwards in December. The pressure on the construction sector due to tightening policies continues. However, it is expected that the tightening measures could begin to ease, including interest rate cuts. Therefore, the downward trend in the confidence index reversed to some extent in December. A limited recovery in the construction sector confidence index is likely in the first quarter of the new year.

Current Construction Work Level Decreased by 1.8 Points in December In December, the current level of construction work decreased by 1.8 points. In November, the construction work level increased by 4.0 points. After the increase in November, the level of current construction work decreased again in December. With the onset of winter, the high season has also ended. The current work level will continue to be influenced by seasonality, expectations, as well as economic policy applications, earthquake zone, and urban transformation activities. The current work index will likely remain volatile.

New Construction Orders Decreased by 0.9 Points in December New construction orders were generally stagnant during the summer months but increased by 1.1 points in November. In the last month of autumn, new orders recovered from their lowest level of the year. However, in December, new construction orders decreased again by 0.9 points. Economic policy applications and their effects are the main factors determining new orders. With the end of the high season, new orders will also weaken. It is expected that a permanent recovery in new orders will take time.

Housing Sales Increased by 63.6% in November 2024 In November 2024, 153,014 housing units were sold. Housing sales in November 2024 increased by 63.6% compared to the same month last year. November recorded the second-highest monthly housing sales of the year. The wealth effect created by the high returns of savings instruments has been a determining factor in this increase. From January to November 2024, housing sales increased by 16.4% compared to the first eleven months of the previous year, reaching 1,265,388 units. Housing sales are supported by more favorable housing loan interest rates offered by banks. The expectation that housing prices will rise has strengthened demand for housing.

Second-Hand Housing Sales Increased by 64.6% in November 2024 In Turkey, 103,740 second-hand homes were sold in November 2024. Second-hand housing sales increased by 64.6% compared to November of the previous year. November recorded the second-highest monthly second-hand housing sales of the year. From January to November 2024, second-hand housing sales increased by 13.0% compared to the same period last year, reaching 857,556 units. High first-hand housing sales are also expected in the last month of 2024. The desire of those purchasing first-hand homes to sell their existing homes will also boost second-hand housing sales.

Construction Sector and Financing Challenges In 2024, the construction sector felt the effects of tightening policies, especially on the financing side. In the third and fourth quarters of the year, tightening monetary policies were applied decisively. Credit limits, high loan interest rates, and reduced liquidity continued to limit financing opportunities for the construction sector. The assessments made in the monthly contractor confidence index survey conducted by the Turkish Statistical Institute also reveal the developments on the demand side throughout the year. Insufficient demand increased in the last quarter of the year, reaching its highest level since the beginning of 2022. High financing costs remain a major factor limiting activities in the construction sector. Financing problems remained high in the last quarter of the year, and the effects of tightening policies were increasingly visible. Labor shortages are less of a problem, while material and equipment shortages are decreasing. Demand levels and financial issues were the main determinants in the construction sector in 2024. Restrictive conditions are expected to persist in the first quarter of 2025 as well. Demand for the construction materials industry will also be limited in the first quarter due to these conditions. With the start of the targeted reduction in inflation, the Central Bank of Turkey began cutting interest rates by 250 basis points in December. It is expected that interest rate cuts by the central bank and market rates will continue in the new year. As a result of the interest rate cuts, the difficulties on the demand and financing sides will decrease, and this will become more evident in the second quarter of the year.”

UNICERA International Ceramic Bathroom Kitchen Fair, organized by TG Expo International Fairs in cooperation with the Turkish Ceramics Federation (TSF) and Plumbing Construction Materials Association (TIMDER), will take place between 6-10 November 2023.

The global air conditioning sector has achieved a value of 570 billion dollars in the last 4 years. The air conditioning sector, which increases its exports every year, is preparing for ISK-SODEX!

The 25th HOSTECH by TUSID Fair, which will be held in cooperation with TUSID and TÜYAP on 20-24 September 2023, will be held at the Istanbul Expo Center (IFM) as in previous years. The fair, which is one of the leading international trade points for the HORECA sector, includes industrial kitchen, service, catering, laundry, pastry and bakery machinery and equipment serving the sector, as well as all related services such as contract furniture, textile, decoration, cleaning, lighting, architecture, pool and landscaping. It includes a wide range of products and services from different sectors.

At TINY HOME SHOW, steel, wooden, container villa houses as well as all complementary products and services will be exhibited.