Source: Global Trade Atlas, USDA FAS

Furniture

It is estimated that there are 30,000 companies manufacturing furniture and interior products in Turkey, employing around 260,000 people. If furniture side products are also taken into consideration, the number employed by this sector rises to 2 million. The vast majority of these companies are very small, specialised cottage-style operations.  However, according to data supplied by the Union of Chambers of Commerce and Commodity Exchanges of Turkey (TOBB), around 40 furniture manufacturers in the country employ more than 250 people, with a further 155 companies employing more than 100. The furniture industry in Turkey is fairly spread out, although there are pockets of concentration in a number of towns and cities, with the largest centres found in Istanbul, Ankara, Bursa-Inegol and Izmir. Taken together, the estimated output of the furniture industry exceeds $10 billion, and wood furniture represents approximately 40% of the total. The main species used in solid wood furniture are ash, beech, oak, pine, lime/linden (European) and mahogany (African). In veneered furniture, oak, beech, walnut and mahogany are commonly used.

Turkish furniture factories use the latest manufacturing technologies, in line with world standards. For the past twenty years, the use of advanced technology and CNC benches has become standard. High quality, export grade products are produced and quality control runs all the way from raw material choice to the final packaged product. Most manufacturers have obtained ISO9000 certificates and comply with other international quality standards.

 Production of furniture has risen sharply during the last five years, due to high levels of construction in Turkey, as well as increasing export demand. In fact, Turkey is a net exporter of furniture and exports of all furniture types reached $1.3 billion in 2008, rising from $435 million in 2003. The leading export destinations for Turkish manufactured wooden furniture in order are Germany, Iraq, France, Iran, Greece, the UK, Netherlands, Romania, Azerbaijan and Russia. However, Turkey exports furniture to over 160 countries in total. The growing importance of European markets for Turkish furniture exports is leading to increased interest by Turkish manufacturers in certified wood, and once again, this illustrates the ripple effects of the growing "green procurement" movement beyond the borders of the main European implementing countries.

Unsurprisingly, the Turkish furniture sector has been affected by the global economic downturn, with reduced domestic and export demand leading to lower production and exports during this year. In fact, there was a 20% reduction in exports of Turkish furniture in January of this year, as compared to the same month in 2008. However, it is widely anticipated that this downturn is not the beginning of a long term trend and that production and exports will pick up fairly quickly, as both the Turkish and world economy recovers. Turkish furniture manufacturers are also able to benefit from their large presence in Middle Eastern markets, which, for the most part, have escaped the wider effects of the economic downturn.

Construction

In 2008, the Turkish construction sector slowed down considerably, after reaching growth rates of 20% per annum since 2002. It reached a total growth level of 45% between 2002 and 2006, but began to slow down in 2007 to a rate of 5.7% and continued to contract in 2008. By this time, its share of the GNP had declined to 5.9%, although it still was the fourth largest sector of the economy after services, manufacturing and agriculture. Although heavily affected by the global financial crisis in 2008-09, a total of 23 Turkish construction/contracting companies were identified in the 'Top International Contractors List' of 225 prepared by the global industry publication Engineering News-Record. It added that this makes the Turkish construction/contracting industry the world's third largest, ranking behind those of USA and China.

According to figures provided by the Turkish Contractors Association, the value of projects undertaken abroad increased 15 times for the last six years, starting from US$1.2 billion in 2002. It increased to US$19.5 billion in 2007 and US$23.6 billion in 2008, with total completed projects, in 55 different countries, worth over US$100 billion.

The development of the construction industry has resulted in a large and diversified product range of building materials, a dynamic and respectable contracting services sector and a well-established construction and mining industry. The Turkish market for building materials accounts for 10% of the total construction industry and 80% of building materials are locally produced, including cement, steel, wood products, bricks, PVC, polyethylene, glass, ceramic tiles and sanitary ware.

 In 2008, the total value of imports of building materials into Turkey was around $6 billion. Imports have grown 20% over the past few years, with the main supplying countries remaining Germany, Italy, France, Bulgaria, Russia and USA. Some products imported into Turkey are re-exported into Central Asian countries, Russia, the Middle East and the Balkans.

The construction sector was the main driver of growth in Turkey prior to the global credit crunch, but demand for 900,000 to one million housing units annually through 2015 still exists, and the public and private sector is utilising this slowdown period for research and development work, while looking for cost and time efficiency solutions. Also, in the private sector, there are still high-end major residential and shopping mall developments on the drawing board especially in Istanbul.

Since energy is so high on the agenda there is also a huge demand for energy efficient solutions in general, which could provide a significant opportunity area for US forest products exporters companies who can offer such solutions and products. Turkey's construction industry is rather self-sufficient, but opportunities in specialty markets such as accessories, flooring, prefabricated wall panels, paint raw materials, insulations and plumbing fixtures exist for third country suppliers. There are also good opportunities for building products, particularly those of more sophisticated technology, 'finished' products of high quality, interior 'finishing' materials, building systems and also specialist building products imported in component form and assembled in country.

• Japan Home and Building Show November 11-13, Tokyo
• Big 5 Construction show November 23-26, Dubai

• JLIA mission December 8-9, 2009, Tokyo
• SEC Annual Board Meeting, December 15, Tacoma

• Expo Moboliario,  Janurary 23-25,  Mexico City

•   IndiaWood 2010 March 4-8 Bangalore 
• A+C Show , March 9-12 Tokyo
• Interzum China, March 27-30 Guangzhou