IS A NEW OFFENSIVE POSSIBLE?

The diagnosis was made by one of the leading members of the government. “Industry has been neglected. Over the last ten years the contribution of industry has declined.” Expects say that this is because the support given to the construction and services s

Capital (Turkey) - - RESEARCH -

AT the beginning of September, Economics Minister Ali Babacan’s statements became the leading item on the entire business community’s agenda. In fact, Babacan’s statements addressed a reality that had been long discussed in business circles but had not been mentioned by anyone from the government. People claim that the share of industry in total national income has fallen. “This is not a good trend,” they say and, in brief, stress that it is necessary to shift from construction to industry. “Turkey needs first of all to become industrialized and become a producing society. We have not reached the desired point. In recent years there has been a shift towards construction because of its rapid returns. If there is no change in the shift from industry to construction, we are on the way to becoming a country that constructs very luxurious buildings rather than produces and have an economy that spends money on stone and soil.” A glance at the figures from the last ten years confirms the truth of what Babacan said. In 2003, manufacturing industry made a contribution of 1.8 to GDP growth. In 2013, this fell to 0.9. It is also possible to see a clear decline in the profile of the capital500. In 2004, there were 399 industrial companies in the Capital500. In 2014, this figure was 306.

WHEN WAS THE LAST INVESTMENT?

When we look at movements in investments in industrial sectors over the last ten years, it is striking that there have not been any largescale investments. The last major investment in the automotive sector was realised in 2002 by Ford Otosan. After this huge $1 billion, apart from conveyor belt investments for capacity increases and new models, there were no major investments. In white goods, that largest investment in recent years was the Euro 25 million investment this year by Indesit in washing machines. In small household appliances, BSH’s TL 20 million investment in a plant in Çerkezköy is the largest investment in the sector in recent years.

Textiles and clothing comes to the fore as the sectors in which there is least movement in investments. Since the 2008 global crisis in particular, there have been no factory investments, says Clothing Industrialists’ Association President Cem Negrin, noting: “There are just

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