TURKISH HVAC-R INDUSTRY EXPORTERS UNION (ISIB)

Even though the Turkish HVAC-R sector started to get organized in 1993, Turkey’s involvement in the heating, ventilating, and air-conditioning sector dates back to the 1950’s.


Since that time, other than in periods of recession, this industry has grown quickly both in terms of manufacturing and volume, expending its domestic and foreign markets. This growth has been accelerated by a number of factors, including Turkey’s young population, the country’s steadily increasing GDP (gross domestic product), and the public’s growing demand for comfortable living standards. These developments were parallel to the positive advancements seen in Turkey’s overall economy. HVAC-R is one of the exceptional sectors in Turkey that has a fully functional organizational structure with an assembly, foundation, association and exporters union. It has established occupational standards, business ethics principles and clear target strategies. Notably, Turkey is now Europe’s fifth largest market for HVAC-R products. 


The Turkish HVAC-R sector is aiming higher and wants to surpass its current position in the national and international markets.


With the products it’s now manufacturing Turkeys air-conditioning industry has not only reached the four corners of the world, it also now ranks as a major global sector. The sector itself organized and began cooperative efforts in 1993 and today includes representatives from a wide variety of industries such as; heating, cooling, ventilating, air-conditioning, deep-freezing, refrigeration, plumping systems and parts, and insulation. Clearly, Turkey’s involvement in this sector incorporates a wide range of products and services.


The HVAC-R sector has become an important building block of the Turkish economy, developing and enhancing the Turkish market while increasing international exports to foreign markets.


The recent rapid advancements and growth in Turkey’s HVAC-R manufacturing, sales, employment, foreign investment, technologies and R&D (research and development) investments all point to a bright future for the overall sector. A total of 35 HVAC-R companies rank among Turkey’s largest one thousand industrial companies and six of these are included among Turkey’s one hundred largest exporters.


The Turkish HVAC-R products are in high demand in international markets and are recognized for their quality and durability. This has enabled the Turkish HVAC-R sector to steadily increase in exports. Today there are 14.000 active HVAC-R exporters. All of these developments are attracting foreign investors. The sector is also being advanced through a number of associations, foundations, an exporters association and a council. Furthermore HVAC-R ranks as one of Turkey’s very few sectors that has established a body of standards, signed off on work principles and ethics and paved the way forward with a roadmap of targets and strategies for 2023.


Spurred by both domestic and international supply-demand cycles, the HVAC-R sector is quickly advancing and its graph is rising, both for manufacturing and for sales. The HVAC-R sector also outdoes many other sectors in terms of added value figures. High profitability margins, a wide range of products, and the fact that it is based on products that directly affect lifestyle standards all combine to attract an educated workforce and foreign capital investment. The competitive strength of this sector is strongly supported by a well-organized web of civil society organizations, global companies which provide an extensive market reach, a well-qualified and youthful entrepreneurial base, well-funded research and development efforts and domestic and foreign investments.


Turkish HVAC-R sector is exporting to 70 countries around the world. With the support of the Turkish Government and through intensive efforts the sector established its air-conditioning Industry Exporters Union (ISIB).With the leadership of ISIB, Turkish HVAC-R is aiming to strengthen the sector and increase its national and international impact in foreign markets. 


Turkish HVAC-R industry is the world’s leader in the manufacture of panel type radiators and leads Europe in the manufacture of split air-conditioning units and flexible air ducts.


Today the HVAC-R sector in Turkey provides jobs for 300.000 people and is a positive addition to Turkey’s overall economy in terms of its young population and its job potential. In addition, Turkish workers’ enterprising skills and their talent for being able to work in a variety of environments are also advantages for the industry overall. Another advantage is the positive ratio of Turkish engineering costs to quality, as this factor provides the industry with a significant competitive edge. A further significant geo-strategic advantage for entrepreneurs in the HVAC-R industry is that Turkey is geographically situated in the Middle East, the Caucasus, Central Asia and North Africa. This close proximity to developing markets is a high lucrative factor for Turkey’s HVAC-R sector, allowing for considerable savings in product transport and providing the ability to quickly complete orders. The proximity is not only geographical: Turkey has a long history of trading with these regions and shares certain key cultural components.


Turkey has become Europe’s and Africa’s production base in the HVAC-R field. Turkey now is a hub in the production of panel radiators, boilers, air handling units, refrigeration cabinets, freezers, pumps and air ducts. The Turkish HVAC-R sector has attracted the attention of the foreign capital with its advantages and the worlds’ leading companies have selected Turkey as a production base. World giants, Daikin, LG, Vaillant, Carrier, Wilo, Franke, Atlantic, Soler & Palau, System air and many other world famous HVAC-R brands choose to invest in Turkey. 


The HVAC-R markets are rapidly growing among Turkey’s contiguous neighbors in the Middle East, Russia, Central Asia, and North Africa, all of which are in the mist of construction booms. These factors are leading Turkey to becoming a center for demand facilitation, both for local and foreign companies. In recent years, Turkish companies have begun forming strategic partnership with foreign companies it has partnered within the past. These partnerships are also facilitating opportunities for the transfer and injection of new technologies in to Turkish industry.


Yet other significant plus for Turkey’s HVAC-R sector is the predominance of Turkish construction companies that are working abroad. The work volume of Turkish construction companies working abroad has grown significantly during the past several decades and today Turkey is in second place internationally in these enterprises, ranking only behind China. Acquiring their HVAC-R needs from Turkish-centered firms has become a win-win situation, both for the Turkish contactors and for the companies operating within Turkey. Thus the success of Turkish construction companies abroad plays an important role in the growth of Turkish exporters of such products and the ability of the sector to gain a footing in these foreign markets. 


The Turkey Exporters’ Union has set a 500 billion US dollar export target as a way to mark the celebration of the 100th anniversary of the founding of the Turkish republic that is due to take pace in 2023. Within this goal, our sector has established a target of 25 billion dollars of export and 35 billion dollars of domestic sales. Established in 2011 with the aims of increasing sector exports, gathering sector exporters under one roof, and further strengthening our sector, the Turkish HVAC-R Industry Exporters Union is dedicated to leading the sector in the realization of these 2023 goals.


In 2002 sector exports were $630 million; it has exceeded $3.6 billion in 2010 which shows an increase of six folds. In 2011, outstanding increase of 30% from the previous year had shown and the exports reached $4.5 billion. The foreign trade volume in 2002 was two billion dollars, while today this volume has reached ten billion dollars. It is evident that the sector is in an upward growth pattern and it is expected for this growth to continue.


Today Turkey is in the midst of a multi-lateral growth pattern that ranges from manufacturing to export and from agriculture to construction. Turkey has set high aims for itself: for instance, targets call for Turkey's railroad share of exports of 4.76% in 2011 to increase to 15% by 2023, its sea trade from 2.66% to 10%, its air freight from 0.44% to 1%, and its road transport to decrease from 80.6% to 60%. Targets also call for the income share of Turkey's lowest 20% of population to rise from the 2002 share of 5.29% to a share of 6% in 2023. Other targets call for the housing stock to rise from 18 to 25 million dollars, the annual number of tourists to rise to 60 million, the average life span to raise 5-6% to 76 years, for the volume of foreign trade to rise to 1.1 trillion dollars and for exports to total 500 billion dollars. Turkey's reputation and the trust towards its economy and products are all rising. These targets and expectations are also having a positive effect on the sector. The perceptions of foreign inventors in the country and in our sector in particular are also becoming increasingly positive.


The Turkish HVAC-R Industry Exporters Union continues to work to advance today's levels of exports of sector products. In 2012, the union expended great efforts to this end. The union participated in a number of sector exhibitions held in international arenas. İSİB sponsored the Rehva event and organized the national participation in the InterClima exhibition held in Paris. İSİB also took on the promotional work for the Chillventa Exhibition in Nürnberg. In 2013, İSİB will continue its efforts by organizing Turkey’s national participation at the Chillventa Exhibition in Brazil, the French Interclima, and the Batimat Exhibition in Morocco. İSİB will also be organizing a sectoral trade representative group for Morocco. In parallel to the Climamed Symposium İSİB will be creating a VIP representative group and organizing a design competition. Included in the plans for 2013 will be the creation of a purchasing group for the Sodeks Exhibition to be held in Ankara. İSİB will be hosting a stand at the ISH Exhibition in Germany and will be participating in the AHR Expo Exhibition to be held in 2014 in Mexico. Currently, İSİB is conducting promotional efforts to introduce the Turquality program and is encouraging participation. To ensure the permanence of the sector İSİB will also continue its effort at increasing work force quality, brand-name development, research and development, production and development, innovative design, production of secondary products and natural resources, the concept of “right design, right product, and right assembly,” correct procedures in operational acquisition and operations, expansion into foreign markets, and effective utilization of sector exhibitions. 


İSİB has already established trade standards that will continue to increase its international credibility. By promoting these standards at private institutions, schools, colleges, universities, and trade schools, İSİB will ensure that the sector remains attractive to an exceptionally knowledgeable and skilled worker base. The union is putting effort into establishing an HVAC-R Engineering degree program within the Mechanical Engineering Faculty of Istanbul's Yildiz Technical University and holding talks with other universities towards the establishments of such programs. Currently there are eighteen students enrolled in this degree program. To this end, the support given by the sector associations and companies to provide scholarships, work-study programs, and jobs to the students and graduates of these programs will become ever more important.


The Turkish HVAC-R sector is a part of a market similar to Europe, a market that treasures quality and that strives to purchase high quality goods. The EU perceives Turkey as a supplier country. Turkey's HVAC-R sector is one of the country's best attractors of foreign investment. Many global companies are either striving to establish partnerships with Turkish companies, or want to enter Turkey directly. When looked at from the European vantage point, it becomes evident how valuable Turkey is for that region. I hold that a more attractive alternative for Turkey is simply inconceivable.
 

 

BOARD OF DIRECTORS

 

S. Zeki POYRAZ
Chairman of the Board of Directors
AFS FLEXİBLE KANAL TİCARETİ A.Ş.

Mehmet H. ŞANAL
Deputy Chairman of the Board of Directors
Üntes Isıtma Klima ve Soğutma San. Ve Tic A.Ş.

A.Metin DURUK
Deputy Chairman of the Board of Directors
Friterm Termik Cihazlar San. ve Tic. A.Ş.

Hilmi Önder ŞAHİN
Member of the Board of Directors
Alarko Carrier San. ve Tic. A.Ş.

Levent AYDIN
Member of the Board of Directors
Panel Sistem Soğutma San. ve Tic. A.Ş.

Zeki ÖZEN 
Member of the Board of Directors
Daikin Isıtma Soğutma Sis. San. Tic. A.Ş.

Tayfur ALTINKÜP
Member of the Board of Directors
Klas Isıtma Soğutma Klima San. ve Tic. Ltd. Şti.

Murad BAKANAY
Member of the Board of Directors
Niba Su Soğutma Kuleleri San. Tic. A.Ş.

Mehmet Bender ÖZOKUMUŞOĞLU
Member of the Board of Directors
Eleks Dış Tic. A.Ş.

Erdem ERTUNA
Member of the Board of Directors
Türk Demir Döküm Fabrikaları A.Ş.

Halit Turgut SALAÇİN
Member of the Board of Directors
Ahmet Yar Soğutma San. ve Tic. A.Ş.