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  • CONSTRUCTION LIFT (11 Şubat 2015)

     In 2014, world economy grew faster than in 2013 particularly due to the improvement in developed countries. The growth rate of world economy was 2,4 % during the fi rst half of previous year, but it proved to be 2,9 in the fi rst half of 2014. Gradually accelerating and getting more resistant in the USA economy, the growth is promising for the whole world economy at the same time. Economy of the EU has also been growing since 2013. On the other hand, economic growth is slowing down and remained under its potentials in developed countries. While economic performances in both developed and developing countries were also felt in the construction sector; construction, housing and real estate sectors grew rapidly in the USA in 2014. In addition, construction sector in the EU started growing again after a long recession period. On the contrary, the growth of construction sector is slowing down in developing countries. For example, the sector growth rate is getting slower in China and India, and the growth is almost stopped in Russia and Brazil.

     Turkey’s economy had a growth rate of 3,3 per cent during the fi rst half of 2014. As a result of political practices targeting price stability and fi nancial stability, economic growth has slowed down especially along with special consumption and investment expenditures. It is estimated that the growth will be 3,5 per cent throughout the year 2014. One of the primary areas of economy, construction sector grew by 3,8 per cent in the fi rst half of 2014. The growth in the construction sector also slowed down due to recent economic policies. In overall 2014, it is estimated that the sector will grow by 3,5 to 4,0 %. Construction sector is increasing employment rates despite the slowing growth in both economy and sector. Reaching 1.95 million of employees by the end of the fi rst half of 2014, the growth in construction sector is 111 thousand above previous year’s same period. It is seen that the sector is continuing to be a signifi cant source of employment.

     Overseas contracting services constitute one of the strongest areas of construction sector. The number of projects awarded in the fi rst half of 2014 has increased by 2 reaching 116 since the fi rst half of previous year. Nevertheless, the cost of works undertaken has decreased by 14,7 % to 9,9 billion dollars. In 2014, important decreases have been seen in works undertaken as a result of the problems faced in Iraq, Libya, Russia, Egypt and Algeria.

    In contrary to the above, the fi gure is gradually increasing in lift sector. The EU Directives adopted the accession period widened the exportation capability of Turkish lift sector, and exportation all over the country is gradually increasing in a way to reach all parts of the world. The movement in construction sector keeps Turkish lift sector alive and maintenance and revision market of approximately 600 thousand lifts is leading the sector.

    BULGARIA

    Construction sector in Bulgaria has drastically shrunken following 1989 so that the number of projects completed in 1997 has been equal to one quarter of the one in 1989 only. Afterwards, the construction sector has gone through another increase 90 per cent of which consists of private companies. Besides infrastructure projects to be completed following the EU accession in Bulgaria, other projects are being developed by central and local authorities in the fi eld of housing construction. On the other hand, it is expected that building and real estate prices will increase as a result of interest of foreign investors in real estate market.

     The demand for construction materials for the need of rapid housing is mostly supplied by foreign fi rms and importation to a great extent. Foreign-source dependency is the case in lift sector as well. A considerable market of lift is being opened in the region due to the fact that construction sector is growing and EU Directives stipulate that existing old lifts shall be revised with improved safety levels. The countries without production capability are being followed by fi rms which are capable of meeting the demand. There is an estimated number of 80 thousand lifts subject to repair or revision in overall Bulgaria.

     IRAN

    Iranian construction sector has gained impetus following the war in early 1990s. The demand born by those returning to the country has led to boom in the sector after the war. The emphasis on construction placed by the government of Iran after the war has also caused the sector to be so busy. Such developments brought a considerable volume of business in construction sector by 2007 and thus population density has shifted towards urban centres. In 2007, total investment made by private sector in construction sector reached 68 %. In Iran with a population of above 80 million, construction sector is constantly experiencing dynamism in parallel with urbanization process and population growth, and such dynamism is refl ected to all areas of the construction sector.

    Rapid and incremental increase of buildings in metropolitan cities where population density is usually high increases the importance of lift sector in the region, too. Nearly 40 thousand people work in lift sector all over Iran. Moreover, around 500 fi rms are registered in formal terms. Around 60 thousand lifts and one thousand 500 hundred escalators are being built per year in Iran. Training receives also considerable interest in lift sector in Iran. In places more than 6, training is given for expertise in lifts and there are lift engineering departments in 2 universities. 95 of the Iranian fi rms are comprised of domestic fi rms, while remaining 5 % is comprised of foreign fi rms. Especially fi rms from China have an important share in this group.

    POLAND

     Poland, which grew by 1,8 per cent in 2013, performed better than the other EU countries in growth potentials. At the same time, construction sector gained impetus and a business volume of 38 billion dollars was reached in 2013. A considerable amount of funds fl ows from the EU to Poland especially for modernization of highways and railways. There is a huge budget of 73 billion Euro covering other items of construction as well. The government provides considerable convenience for direct foreign investments in Poland, where there are ideal investment environments for investors in special economic zones exempt from tax.

     It seems that construction building in Poland might mobilize the lift sector like all other sectors. In particular, the EU Norms adopted after EU accession will reveal itself with the revision market expected in the lift sector there. Though weak construction sector in that country doesn’t currently make the sector so attractive for building new lifts, old ages of the lifts and obligation of reconstruction by 2020 in line with EU Directives keep the revision market alive in Poland. There are not so many local lift fi rms in Poland; still, we can say that multinational fi rms are abundant and active there. The fact that revision market is vivid and there is limited production within Poland offers an important market for component producers there.

     RUSSIA

     Russia is quite an important market for both construction and lift sectors. As a result of decreasing oil prices in 2014, Russia experienced a serious shortage of source, while it had been an indispensable fi eld for both sectors in previous years. Barrel price of oil has been decreasing in an increasing manner since mid 2014. Eventually it has decreased by 50 per cent, which resulted in fi nancial crisis for Russia since it has been a leading source of income. In turn, projects have halted in the construction sector.

     Currently there are 600 thousand lifts in Russia and other 30 thousand new lifts are being produced every year. While 70 per cent of lifts are produced by domestic fi rms in Russia, the rest of 30 per cent is supplied by import. Imported lift equipment increase year by year, Russian Federation issues approvals for 30 thousand lifts every year. Sectoral representatives interested in carrying on business in Russian market are supposed to not only abide by EU Directives but also complete the certifi cation process required by Russian Federation.

    GERMANY

     German construction sector passed years 2013 and 2014 with a great increase. Construction sector hasn’t shown a noticeable development and kept a static course for a long time; however, it has boomed within the last 2 years. German construction sector fi nished 2013 with an increase of 13,5 per cent and volume of the sector continued to increase in 2014. In the fi rst half of 2014, housing and non-housing construction approvals increased by 9,6 per cent. Housing and non-housing construction approvals reached 136 thousand 843 in 2014, whereas it was 124 thousand 876 during the fi rst period of 2013. Similarly, approvals for new buildings increased by 7,2 per cent reaching 121 thousand 25, while approvals for existing buildings were recorded as 15 thousand 818 with an increase of 31,6 per cent.

     More than 10 thousand people are employed in lift sector in overall Germany with total turnover of 2 billion Euro in the whole sector. Germany is an exporter of lift and escalator technologies. There are nearly 700 thousand established lifts and escalators in Germany, which corresponds to 15 per cent of total fi gure in overall Europe. 

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