Industry Spotlight

Facts & Figures                                                                                                   (Source: www.invest.gov.tr)

Country

Republic of Turkey

Capital

Ankara

Form of Government

Parliamentary Democracy

Population

76.6 million (2013)

Workforce

28.8 million (2013)

Official language

Turkish

Area

783,562, 38 km2

Neighbouring Countries

Bulgaria, Greece, Syria, Iraq, Iran, Azerbaijan, Armenia, Georgia

Major Cities (Population)

Istanbul (14.2 million); Ankara (5 million); 
Izmir (4 million); Bursa (2.7 million), 
Antalya (2.1 million) (2013)

Time Zone

GMT +2

Currency

Turkish Lira (TL)

Financial Centre

Istanbul

Gross Domestic Product (GDP)

850 billion USD (2014- Current prices)

GDP per capita

10,782 USD (2013)

Exports

157 billion USD (2014)

Imports

242 billion USD (2014)

Tourism Income

34.3 billion USD (2014)

Number of Tourists

36.8 million (2014)

Direct Foreign Investment

12.14 billion USD (2014)

Number of Foreign Companies

41,131 (2014)

Inflation Rate

8.17 % (TUFE, 2014)

Main Export Markets

Germany (9%), Iraq (7.8%), England (5.8%), Russia (4.6%), Italy (4.4%), France (4.2%), USA (3.7%), UAE (3.3%), Spain (2.8%), Iran (2.4%)  (2013)

Main Import Markets

Russia (9.9%), China (9.8%), Germany (9.6%), Italy (5.1%), USA (5%), Iran (4.1%), Switzerland (3.8%), France (3.2%), Spain (2.5%), India (2.5%)

Trade Agreements

European Union Customs Union Treaty;

Free Trade Agreements with Albania, Bosnia Herzegovina, European Free Trade Agreement member countries (Iceland, Norway, Switzerland and Liechtenstein); Morocco, Palestine, South Korea, Georgia, Croatia, Israel, Montenegro, Macedonia, Egypt, Serbia, Syria, Chile, Tunisia,  and Jordan

 

“An annual growth rate of 15% is projected for the industry.”

The renaissance in the Turkish HVAC&R industry began in the 1980s and was followed by a period of rapid growth in the 90s. It was primarily during this period of time that the bulk of the professional workforce organization was forming and becoming established. As the new millennium opened, the Turkish HVAC&R industry was moving strongly toward a place of maturity. As new management, improved laws, incentives, and surges in exports strengthened the place of the Turkish HVAC&R industry in Europe and the rest of the world, foreign investors began to take even more interest in the industry.

At this time also, the growing Turkish market was assuming a more central role in the world, providing important opportunities for respected global business players. One after the other, the positive effects on the Turkish HVAC&R industry began to become evidenced.

Turkey’s construction business industry has risen steadily to take second place in foreign markets worldwide, creating an opportunity for the Turkish HVAC&R industry. Riding this wave, export revenues in the Turkish HVAC&R industry shot up to 4.4 billion USD. The Turkish Exporters Assembly (TIM) has proposed a target of 500 billion USD in exports for 2023, a year that will mark the 100th anniversary of the Turkish Republic. The share of HVAC&R industry in this target is expected to be 25 billion USD. At the same time, the industry will have a domestic market target of 35 billion USD. It is this target that is driving the work of the Turkish HVAC&R industry.

The Turkish HVAC&R industry has increased five-fold within the last ten years. Currently listed as 23rd among world HVAC&R industries, it has now set its sights on becoming one of the top ten.

According to data provided by the Turkish Statistical Institute (TUIK) in October of 2014, the electric, gas, steam and HVAC&R industries showed a 2.9% increase in production over the same month a year earlier. Turkish HVAC&R Exporters Union (ISIB) reported an increase in exports of 5.4 % between 2014 and 2015. An annual growth rate of 15% is projected for the industry.

From mechanical projects and contract services to production, from research, development, and innovation to after-sales services—the Turkish HVAC&R industry is working to raise the bar in a number of different disciplines.

Zeki Poyraz

ISIB Chairman of the Board of Directors

Turkey in Figures*

POPULATION

According to the results of the 2013 Address-based Population Registration System (ASDNKS), 50.2% of Turkey’s population (38.5 million persons) are male, 49.8% (38.2 million persons) are female. Turkey has an average population density of 100 persons per square kilometer. Istanbul, with 2,725 persons per square kilometer, is the most populous provinces. Of the total population, 91.3% live in province or city centres. Istanbul is the most populous province, with 14.2 million persons. Next most populous cities are, in order of size: Ankara, Izmir, Bursa, and Antalya. Half of population is below age 30.4 in Turkey. 67.7% of the population being of working age between the ages of 15 and 64. Nearly a quarter of the population (24.6%) is younger than age14; 7.7% are 65 years or older.

EDUCATION

Total number of students is 22.7 million in 2013/’14 academic year. Out of this number 1.1 million students were in pre-schools,

5.6 million were in primary schools, 5.5 million were in junior high

schools, 3 million in general high schools(1), 2.5 million in vocational and technical high schools. The rest were in colleges and universities. Number of adult education institutions in 2011/’12 school year was 28 thousand 408.

TOURISM

In 2013, among most arriving foreigners by nationality, Germany had the highest ratio with 14.4%, Russian Federation was the second nationality with 12.2% and the third was United Kingdom with 7.2% . Among nationality groups, OECD countries (Europe) had the highest ratio with 45.7%, Commonwealth of Independent States (CIS) was the second with 24.7% and West Asian Countries was the third with 8.8%.

WORKFORCE

Labour force was 28 million 271 thousand persons in Turkey in 2013. Female labour force is 8 million 674 thousand persons and male labour force is 19 million 597 thousand persons. Male population consists 69.3% of total labour force and 16.2% of total population is between 15-24 age groups. Of total employment amounting to 25 million 524 thousand persons, 65.6% are employed in urban areas and 34.4% is employed in rural areas in 2013.

INDUSTRY

The production in the industry sector increased by 3.4% in 2013 compared with the previous year. In 2013 when the production in sub sectors of industry compared with the previous year was examined, an increase of 4.4% in manufacturing sector, an increase of 0.2% in electricity, gas, steam and air conditioning supply sector was realized. In 2013 when the turnover in sub sectors of industry compared with the previous year was examined an increase of 3.0% in mining and quarrying sector, an increase of 10.1% in manufacturing sector was realized.

CONSTRUCTION

In 2013 compared with the previous year, according to the construction permits given by municipalities to the buildings, floor area is realized as 175 million 159 thousand m2 increasing by 10.7%. In 2013 compared with the previous year, according to the occupancy permits given by municipalities to the buildings, floor area is realized as 137 million 402 thousand 564 m2 increasing by 28.7%. The construction gross wages/salaries index increased by 9.7% in 2013 compared with the previous year.

ENERGY

Industry is the largest electricity consumer In 2012, the gross electricity generation increased by 4.40% and reached 239 thousand 496.8 GWh. On the other hand, consumption increased by 4.74% and reached 194 thousand 923.3 GWh in 2012, when compared to 2011. The share of energy sources in the gross electricity generation was as follows, in the year 2012; natural gas 43.63%, hydraulic 24.16%, lignite 14.48%, hard coal, imported coal and asphaltite 13.91%, geothermal and wind 2.82%, fuel-oil 0.41%, diesel oil 0.27% and others 0.30%. In 2012, 5 thousand 826.7 GWh electricity was imported and 2 thousand 953.6 GWh electricity was exported. In 2012, 47.35% of the electricity generated was used by industry. Furthermore, 23.28% was used in residences, 16.33% in commerce, 4.51% in government offices, 2.33% in irrigation, 1.99% in street lighting and, 4.21% for other purposes.

TRAFFIC

In 2013, number of motor vehicles in traffic increased by 5.3% with respect to 2012. This increase occurred in special purpose vehicle by 9.3%, car 7.3%, minibus 6.5%, small truck 5.0%, motorcycle 2.4%, tractor 3.3% and truck 0.6%. There has been a decrease in the number of bus by 6.8%.

COMMUNICATIONS

In 2013, number of fixed phone subscribers decreased by 2.2% and became 13 million 551 thousand 705, and number of mobile phone subscribers increased by 2.9% and became 69 million 661 thousand 108. In 2013, number of internet subscribers (mobile broadband tariffs less than one month included) increased by 18.0% with respect to previous year and became 32 million 613 thousand 930.

NATIONAL ACCOUNTS

The growth rate of GDP in constant prices (1998) increased by 2.1% in 2012 and by 4.1% in 2013. Gross Domestic Product (GDP) at current prices reached 1 trillion 565.2 billion TL by increasing 10.5% in 2013. GDP per capita was 10 thousand 807 US dollars in 2013. Gross Domestic Product (GDP) at current prices was 822 billion US dollars in 2013.

SCIENCE AND TECHNOLOGY

Gross Domestic Expenditure on Research and Development (GERD) was 13 billion 62 million TL in 2012. Share of GERD in GDP was 9.2 per thousand in 2012. Analyzing the R&D expenditures by sectors, in 2012, 45.1 per cent of R&D expenditure was performed by business enterprises sector, 43.9 per cent by higher education and 11 per cent by government.Total  number of FTE R&D personnel was 105 thousand 122 in 2012. In the three-year period of 2010-2012, 48.5% of enterprises with ten or more employees were classed as being innovative. Percentage of innovative enterprises in industry was 49.8 and 47 in services sector. In January 2013, 90.8% of enterprises used the internet. This ratio was 98.8% of enterprises with 250 or more employees, while enterprises with 50-249 employees was 97% and enterprises with 10-49 employees was 89.3% in 2013. The rate of enterprises that used the Internet for interaction with public authorities was 73.7% in 2012.

*Turkish Statistical Institute, What the Figures Say-2014.

PRODUCTS ARE MANUFACTURED AND SERVICES ARE PROVIDED BY TURKISH HVAC-R INDUSTRY FOR THE FOLLOWING PROJECTS

 

Construction is one of the fastest growing industries of Turkey. The international success of these committed companies has provided significant momentum for the HVAC&R industry.

The Pros of Turkey in World HVAC&R Market

Incentives for Research & Development, innovation, and university-industry collaboration

 

Products and service infrastructure consistent with international certifications
Large domestic market
Foreign Market Potential

Global Work Opportunities for Turkish Building Contractor Firms

Guaranty of Non-Governmental Organizations

A young, qualified workforce

Proximity to growing markets

Geo-strategic location

 

Turkish HVAC & R industry, by figures

The Turkish HVAC&R industry has a dynamic structure, with around 15,000 institutions and 500,000 employment 
opportunities. The industry makes up approximately 2% of Turkey’s total employment.

In ten-year period, from 2000 to 2010, the export volume of industry experienced an eight-fold increase and the import industry a four-fold increase. In other words, exports increased twice as much as imports. Cooling systems and components ranked first among major product groups in exports; air conditioning systems and components were first in imports. The total export value of the Turkish HVAC&R industry in 2014 exceeded 4.22 billion USD. Total import figures reached 6,59 billion USD.

Trade volume of industry by main product groups and years has been given the table below. Air conditioning systems and equipment ranked first among product groups, followed by installation, cooling, and then heating systems and equipment. The foreign trade volume of the Turkish HVAC&R industry, compared to the country total was 2.85 in 2012, increasing to 3.11% in 2013.

 

 

Turkish HVAC & R industry, by figures

The Turkish HVAC&R industry has a dynamic structure, with around 15,000 institutions and 500,000 employment opportunities. The industry makes up approximately 2% of Turkey’s total employment.

In ten-year period, from 2000 to 2010, the export volume of industry experienced an eight-fold increase and the import industry a four-fold increase. In other words, exports increased twice as much as imports. Cooling systems and components ranked first among major product groups in exports; air conditioning systems and components were first in imports. The total export value of the Turkish HVAC&R industry in 2014 exceeded 4.22 billion USD. Total import figures reached 6,59 billion USD.

 

Trade volume of industry by main product groups and years has been given the table below. Air conditioning systems and equipment ranked first among product groups, followed by installation, cooling, and then heating systems and equipment. The foreign trade volume of the Turkish HVAC&R industry, compared to the country total was 2.85 in 2012, increasing to 3.11% in 2013.

Turkish HVAC&R Industry: Exports

Exports in the Turkish HVAC&R industry increased by 5.4% from 2013 to 2014, from $4,196,033,000 to $4,424,526,000 (TIM, 2014). Istanbul, the leading city of the industry, had the greatest share of export revenues, with $2,153,640,000—almost 50% of the total.

Kocaeli, as an industrialized city, took second place, with $423, 443, 000. The other larger shares went to Izmir ($377, 095,000), Manisa ($371,468,000), Bursa ($224, 809,000), and Ankara ($206,491,000).

Turkish HVAC&R exports to a wide range from North and South America to Asia and Oceania. Its top ten export countries are: Germany, Iraq, England, Russia, Azerbaijan, Iran, Italy, France, Romania and Turkmenistan.

 

Installation Equipment Leads in Exports

The installation systems equipment industry has captured the lion’s share of exports (42%) at a value of $1,836,390,000. Next in line are heating systems and equipment ($1,144,935,000), cooling systems and equipment ($676,684,00); ventilation systems and components ($453,006,000), air conditioning systems and components ($232,437,000), and insulation materials ($87,513,000)

Last year, in this industry, the largest export market was Germany, receiving a total of $419 043,000, an increase of 6.3% over the previous year.

England was the second largest market, with $307, 219,000, followed by Russia ($298,547,000), Iraq ($292,702,000), and Azerbaijan ($191,413,000).

While there was a 12% decrease in exports to three of the top five markets—Russia, Iraq, Azerbaijan, there was a 75% increase in exports to 6th place Iran and a 25% increase to 8th place Romania.

 

Links

Republic of Turkey Ministry of Science, Industry and Technology

www.sanayi.gov.tr 

Republic of Turkey Prime Ministry Investment Support and Promotion Agency

www.invest.gov.tr 

YOIKK The Coordination Council for the Improvement of Investment Environment

www.yoikk.gov.tr 

Republic of Turkey Ministry of Foreign Affairs

www.mfa.gov.tr 

Republic of Turkey Ministry of Economy

www.economy.gov.tr 

Republic of Turkey Ministry for EU Affairs

www.abgs.gov.tr 

TUBITAK The Scientific and Technological Research Council of Turkey

www.tubitak.gov.tr 

TUBA Turkish Academy of Sciences

www.tuba.gov.tr 

TUIK Turkish Statistical Institute

www.turkstat.gov.tr 

Central Bank of the Republic of Turkey

www.tcmb.gov.tr 

Turkish Patent Institute

www.tpe.gov.tr/ 

YASED International Investors Association

www.yased.org.tr 

TSE Turkish Standards Institution

www.tse.org.tr 

TMB Turkish Contractors Association

www.tmb.org.tr 

TUSIAD Turkish Industry&Business Association

www.tusiad.org.tr 

BuyFromTurkey

www.buyfromturkey.org

 

International References of Turkish Mechanical Contractors

Parallel to with the strong construction industry, Turkish mechanical contracting companies have been engaged increasingly with international projects. The MTMD (The Association of Mechanical Contractors), which represents Turkey’s mechanical contracting companies, is actively committed to achieving sustainable growth in the industry.

The table below provides some examples of foreign projects currently being carried out by Turkish mechanical contracting companies. The project examples shown are owned by the companies that are members of the association.

New Project Examples of Turkish Mechanical Contracting Companies

Project

Definition

Country

m2

Status

Year

Grand Mosque of Algeria

Religious Building

Algeria

450.000

Ongoing

2015

Oko Tower

Multifunctional Complex

Russia

300.000

Ongoing

2015

Bab Al Qasr Hotel & Service Apartments

Tourism&Entertainment

UAE

300.000

Ongoing

2015

Ashgabat International Airport, Terminal

Tourism&Entertainment

Turkmenistan

220.000

Ongoing

2015

Baku Olympic Stadium

Sport Complex

Azerbaijan

200.000

Ongoing

2015

Mega Mall Bucharest

Shopping Center

Romania

181.000

Ongoing

2015

Jabal Omar Development Project - Phase1 Podium& Hyatt Regency Towers Makkah

Commercial Building

Saudi Arabia

170.000

Ongoing

2015

Al Maktoum Site Development Phase 2

Residential and Social Building

UAE

141.000

Ongoing

2016

Abu Dhabi Marina City

Residential and Social Building

UAE

121.000

Ongoing

2015

Genclik Mall

Shopping Center

Azerbaijan

120.000

Ongoing

2015

Trump Tower & Banquet Hall

Commercial Building

Azerbaijan

120.000

Ongoing

2015

Hyatt Hotel-Tripoli

Tourism&Entertainment

Libya

98.000

Ongoing

2016

Baku White City

Tourism&Entertainment

Azerbaijan

90.000

Ongoing

2015

Ashgabat International Airport, Technical Building

Tourism&Entertainment

Turkmenistan

74.235

Ongoing

2015

Hilton Hotel-Batumi

Tourism&Entertainment

Georgia

70.000

Ongoing

2015

Olympic Complex Olympic Village Fase II

Sports Center

Turkmenistan

69.600

Ongoing

2015

Oasis

 Commercial Building

Russia

58.200

Ongoing

2015

Shahdag Winter Tourism Complex

Tourism&Entertainment

Azerbaijan

55.000

Ongoing

2015

Ashgabat Olympic Village Sportsman’s Houses

Sports Center

Turkmenistan

44.000

Ongoing

2015

Yanao Administration Building-2

Administrative Building

Russia

43.000

Ongoing

2015

Pilyugina Office, Moscow

Commercial Building

Russia

41.000

Ongoing

2015

Qatar Foundation Laboratuar

Health Center

Qatar

40.000

Ongoing

2015

Awaza Convention Center

Tourism&Entertainment

Turkmenistan

40.000

Ongoing

2015

Ashgabat Olympic Village Indoor Water Sports Center

Sports Center

Turkmenistan

39.000

Ongoing

2015

Olimpic Complex Phase2 Athletic Arena

Tourism&Entertainment

Turkmenistan

33.000

Ongoing

2015

University of Dubai

Educational Building

UAE

21.200

Ongoing

2015

Maternity Hospital, Noyabrsk

Health Center

Russia

21.000

Ongoing

2015

Leh Libyan European Hospital

Health Center

Libya

20.000

Ongoing

 

Hazar TV

Commercial Building

Azerbaijan

20.000

Ongoing

 

Al Rayyan Road Mechanical infrastructure works

Infrastructure

Qatar

11 km

Ongoing

2017

Vargas Residential Complex

Residential Complex

Venezuella

220.000

Completed

2014

Jumeirah Village Villas (856 Nos)

Residential and Social Building

UAE

203.000

Completed

2013

Medina International Airport

Tourism&Entertainment

Saudi Arabia

150.000

Completed

2013

Olympic Complex Indoor Arena for 15.000 Seats

Tourism&Entertainment

Turkmenistan

82.000

Completed

2014

Aşgabat Olympic Village Veledrom and Car Park

Sport Center

Turkmenistan

80.000

Complated

2014

Sochi Marriot

Tourism&Entertainment

Russia

70.000

Completed

2014

Olympic Village Accommodation Facilities

Tourism&Entertainment

Russia

70.000

Completed

2014

Cabinet Of Ministers

Government Building

Turkmenistan

70.000

Completed

2014

Olympic Complex Hotel For 800 Beds With Press Center

Tourism&Entertainment

Turkmenistan

64.100

Completed

2013

Aquapark

Tourism&Entertainment

Russia

55.000

Completed

2013

Gazprom Culture Center- Krasnaya Polyana

Sport Complex

Russia

55.000

Completed

2014

Faruk Medical Center

Health Center

Iraq

52.000

Completed

2013

National Gymnasium Arena

Sport Complex

Azerbaijan

45.000

Completed

2014

Arena Norilsk Sports And Entertainment Complex

Sports Center

Russia

40.000

Completed

2014

Astana Library

Social Building

Kazakhstan

40.000

Completed

2013

Sochi Gorki Media Center

Commercial Building

Russia

40.000

Completed

2013

Sofaz Headquarter

Administrative Building

Azerbaijan

33.000

Completed

2014

Olympic Complex Small Arena + Ch 02 Utility Center

Sports Center

Turkmenistan

28.000

Completed

2014

Olympic Complex Large Arena Training Hall

Sports Center

Turkmenistan

24.500

Completed

2014

Al-Farabi Residence

Residence

Kazakhstan

24.000

Completed

2013

Technologies Center, Ashgabat

Educational Building

Turkmenistan

21.000

Completed

2014

Socar Head Office

Commercial Building

Georgia

20.000

Completed

2013

Olympic Complex Small Arena Training Hall

Sports Center

Turkmenistan

19.500

Completed

2014

Al Shobub Private School

Educational Building

UAE

14.000

Completed

2013

Dushanbe International Airport

Tourism&Entertainment

Tajikistan

14.000

Completed

2014

International Airport Temporary Terminal Building

Tourism&Entertainment

Turkmenistan

12.460

Completed

2014