Roofing Sector Aims to Achieve Growth in 2019 Through Renovation and Improvement Projects

Adil Baştanoğlu, Chairman of the Board of the Roof Manufacturers and Businessmen Association (ÇATIDER), presented the sector's assessment of 2018 and outlined his expectations and forecasts for 2019.

Baştanoğlu stated that the sector's targets for 2019 remain growth-oriented and emphasized the necessity of focusing on improvement and renovation in 2019. Noting that urban transformation has slowed down new construction, Baştanoğlu said: "Strengthening buildings that do not necessarily need to be demolished also contributes to revitalizing the market."

Baştanoğlu pointed out that the renewal market in the European Union is worth EUR 109 billion and that nearly half of this market is made up by Germany, France and Italy: "The renewal market constitutes 57 percent of the total construction sector, with 65 percent of this taking place in residential properties.

In Turkey, the renewal market, which was approximately USD 12 billion ten years ago, declined to USD 6 billion in 2017. These figures represent 7 percent of the USD 95 billion domestic market. Yet these figures are expected to be approximately 25 percent."

2 percent growth projected

Baştanoğlu elaborated on the sector's 2019 targets: "The general and numerical targets of the New Economic Program (YEP) indicate that there will be a slowdown in the construction sector. First and foremost, 2 percent growth is projected for private consumption expenditures in 2019.

Accordingly, there may be limited growth in household spending. The construction sector is expected to grow by a maximum of 2 percent in 2019. In public investments in 2019, a contraction of 36.1 percent is projected. Within the framework of the program's public fiscal discipline goal, public investments are expected to be most affected.

A decline in public investments means a significant contraction in public infrastructure and construction expenditures. With these targets, the New Economic Program even encompasses the possibility of the construction sector experiencing a contraction in 2019.

Given this situation, both the construction sector and the roof sector are expected to experience a stagnant year in 2019. Of course, it is also anticipated that renovation projects will continue throughout Turkey."

Baştanoğlu noted that the relative improvement seen in nearby and neighboring markets has helped increase exports to the EU market and stressed that currency appreciation has also had a positive effect on exports.

Baştanoğlu continued: "There may be new developments related to Building Energy Performance (BEP) in the coming year. However, it is of great importance that all details and inspection mechanisms of BEP are implemented with full operability put into effect."

Energy-Efficient Buildings Will Shape the Future

Baştanoğlu stated that according to the Building Energy Performance directives published by the European Parliament, all new buildings are planned to be near-zero energy buildings after 31 December 2020, and added:

"It is important that our country shapes its future in an energy-efficient manner without delay through such innovative approaches. Urban transformation may become more of a focal point in 2019 within this scope. According to statements made by the ministry, the transformation of 300,000 housing units per year is targeted.

It is stated that TRY 8.5 billion in resources, primarily in the form of credit support, have been allocated to transformation projects so far, and that 6.7 million independent units need to be transformed over the next 20 years. In 2019, the ministry is expected to develop new projects with TOKI, Emlak Konut and İller Bankası in the areas of urban transformation and social housing."

Baştanoğlu pointed out that to make the sector's one rising and one declining trend more stable, it is necessary to shift toward rational and need-based construction rather than excessive luxury or luxury-looking development.

Baştanoğlu concluded: "We suffer damage from individuals and organizations that pursue high-margin construction and sales but do not carry out their work properly in terms of technical, economic and aesthetic aspects.

Moreover, large residential buildings or building blocks developed without integrated urban thinking—that is, without considering all infrastructure (clean water, sewage, traffic, etc.) and even possible major disasters—do more harm than good to the city. Our cities need to be able to implement their development plans with a certain discipline."