Turkish furniture sector focus on Europe and Africa

Growing on the basis of the internal market due to its general structure, Turkey’s furniture sector follows a course related predominantly on new housing projects and the rise in income levels. The furniture sector will focus on Europe and Africa in 2014.

 

Turkey’s furniture sector plans on focusing on the European and African markets in 2014 because of problems in the Middle East. The sector projects an export volume of at least $2.2 billion. Growing on the basis of the internal market due to its general structure, Turkey’s furniture sector’s performance follows a course related predominantly on new housing projects and the rise in income levels. Consequently, the housing sector, which has been rapidly growing throughout the country and especially in big cities like Istanbul, Ankara and Izmir for the last 10 years, brought together an increase in demands for furniture. With growing demand, the structure of the sector, which has been operating with a traditional production method as small businesses for centuries, has begun to change. Big enterprises making production in world standards have started to replace small businesses. And Turkey’s furniture sector has become a $10 billion market with nearly 40 thousand businesses and 200 thousand workers. The sector is expected to close 2013 with a growth rate of 11 percent.
 
Problems in the Middle East; European and African markets new destinations
 
Turkey’s furniture sector is among the leading sectors in the country in terms of added value it creates. Furniture, being a sector with the least dependency on imported raw materials and using the most local resources in exports, makes a big contribution in financing the deficit. Consequently, the sector’s primary agenda is foreign markets. Iraq is the largest export market for furniture producers that have realised a sevenfold increase in exports in the last 10 years. Exports to Iraq constitute almost one fourth of the sector’s total export volume. This rate increases considering other important markets such as Libya and Saudi Arabia. Consequently, the progress of the war in Syria, as well as the uncertainty in Egypt which creates big problems in the Northern African market will determine the furniture sector’s export performance in 2014.
 
If the region calms down or the status quo is preserved, it is anticipated that exports to the region will be on the same level as 2013 at least. Another region closely followed by the sector is Europe. The growth in Germany and France specifically could significantly increase exports to these countries. Within these assumptions and comments, it is estimated that the sector’s export volume in 2014 will be around 2.2-2.3 billion dollars. 
 
On the other hand, the construction sector that witnessed a regrowth in 2013 and the subsequent continuation of the revival in the housing sector, as well as the acceleration of urban renewal which moved at a slow pace last year could make a dynamic domestic market possible in 2014. 
 
Performance dynamics

The housing sector’s growth rate in the domestic market and the course of European and Middle Eastern markets which constitute a big part of export revenues indicate that 2014 will be a better year compared to 2013 in terms of furniture sector’s exports. Solving the problems in the Middle Eastern markets specifically and paving the way for the sector is extremely important for Turkish furniture producers. The producers whose primary targets are the European and African markets continue their efforts vigorously on said markets. They specifically plan on increasing the momentum that has been gained in the African continent. As for providing a safer commercial environment in the Middle Eastern countries, one has to wait for the end of conflicts in the region. In addition, South America is one of the markets targeted by Turkish furniture exporters. 


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