Elevator Sector Report 2019
The Industry and Productivity General Directorate of the Ministry of Industry and Technology has published the Elevator Sector Report 2019 within the scope of Sectoral Reports and Analyses Series.
The Elevator Sector Report, which is one of the most important projections about the Turkish Elevator Sector, has been published and provides an insight on the year 2019. Under the titles of general condition of the sector and the evaluation of the last semiannual data, various important data has been shared with the sector.
Compatibility with international directives and standards increased the competitive power
The report stated that the position of the Turkish elevator industry in the world economy and in EU countries bears great importance for the sector to express the necessary sensitivity and adaptation during the transition period, considering the regulations and standard changes in terms of competitiveness and access to new markets.
Periodically inspected elevators per year:
When the results of the periodical controls are analyzed, it is seen that there is a significant increase in the number of elevators that are inspected and given green labels.
The number of Turkish companies operating abroad increased
The report which states, “Turkish companies started selling complete elevators and installing elevators abroad,” and emphasizes that there is a huge increase in the number of companies that install elevators in the Turkic Republics, Middle East and EU countries.
It is indicated that the investments of Turkish elevator companies increased considerably together with the development of foreign trade with the African countries.
We have a huge competitive power in exporting components
It is underlined that the companies that import elevator components from Turkey are mainly EU countries, Middle East countries and Turkic Republics, whereas exporting components from several countries from Far East to South America indicates the significance of competitive power. It is also emphasized that Far Eastern components are also popular in import.
It is stated that the increase in using Far Eastern products in our country has increased their negative impacts on our products manufactured under the frame of European norms. Therefore, for the future of the industry and in order to protect its position in the market, it is important that our companies having success in exportation due to their brand value make individual applications to the Ministry of Economy Directorate General for Importation for anti-dumping measures for the above-mentioned products.
Moreover, it is stated that partnerships established with multinational companies increased their investments in our country in this field, and a majority of companies operating in the Turkish elevator industry has reached the capacity to export their products to several parts of the world.
The general overview of the sector in Turkey
It is also emphasized in the report that increasing housing needs and increasing construction have accelerated elevator manufacturing and the industry experienced important developments in recent years due to the implementation of urban transformation projects.
In the report, which underlines that the elevator industry operates in three main branches, including component manufacturing, installation and maintenance and repair, says the certification activities and periodical controls required due to harmonization with EU legislation make important contributions for the development of the industry. It is also emphasized that the number of qualified personnel working in the field is increasing each day.
In the report, it is stated that component manufacturing is a specialty of machine manufacturing, and that installation should be considered under the engineering and construction services.
Production trends in the sector and the main products
According to the report published by the Ministry, the most-manufactured elevator safety means in local markets are speed regulators, safety means, hydraulic and spring stops, door and lock appliances and the means that prevent the cabin from falling or making uncontrolled movements.
However, supplying rupture valve, hydraulic power units and hydraulic pressure control units, which are obligatory for hydraulic elevators, is import-dependent.
In the report, it is underlined that all of the other main components, like car, machine and motor group, full and semiautomatic car and floor doors, ropes, control card, control panel, guide rails, index elements, levelling system, floor and car buttons, overload system, car and counterweight suspensions, hydraulic cylinder, gearless machine, photocell, speed control devices, control systems, sensors, rail brackets, balancing chain, switches, VVVF invertor, rope equipment and pulleys are manufactured locally.
Additionally, considering the component manufacturing in Turkish elevator industry, installation of an electrically driven elevator is not foreign source-dependent, whereas the installation of a hydraulically driven elevator is foreign source-dependent. It is stated that hydraulic power units are important production factors in the manufacturing of a hydraulically driven elevator, and 90 percent of hydraulic power units are imported to our country.
Sub-sector of the industry and the other sectors with which it interacts
It is stated that, in addition to manufacturing, the Turkish elevator industry operates in design, installation, maintenance and repair services, and it is in interaction with Certified Bodies and Type-A Inspection Bodies.
The procedures and principles regarding the authorization of Type-A inspection bodies by the Ministry have been determined by Elevator Periodic Control Directive and it has been announced that 29 different Type-A inspection bodies were authorized by the Ministry and released to the public.
In the report published by the Ministry, it was also mentioned that the Turkish elevator industry is in a continuous interaction between urbanization and the construction industry that developed as a result. Within this scope, it is said, “Considering that rapid urbanization will continue in Turkey, in parallel with the construction industry, the elevator industry in Turkey will also continue growing inevitably.”
Regional Structure and Clustering of the Industry
The report emphasizes that the elevator industry operates in three main branches in general, including component manufacturing, elevator design and installation, and maintenance and repair. The report also gives a list of the main cities where elevator components are manufactured. Accordingly, manufacturing is centered in Istanbul, Kocaeli and Bursa in the Marmara region, in Izmir in the Aegean Region, in Ankara, Konya and Kayseri in the Central Anatolia Region, in Antalya in the Mediterranean Region and in Malatya in the Eastern Anatolia Region.
In the report, it is stated that installation is done in 81 cities of seven geographic regions, and that the maintenance companies operate independently or as the authorized services of the installers in big cities like Istanbul, Ankara, Izmir, Bursa, Adana, Antalya, Samsun, Trabzon, Konya, Kayseri, Kocaeli, Gaziantep and Diyarbakır.
Capacity utilization in the Industry, the number of offices and employment
Based on the 1967 installers and manufacturers of the industry, which are registered by the Ministry of Industry and Technology and issue an annual operation statement, it is stated that the capacity utilization ratio in the industry has been approximately at 60 percent. In the report, it is also stated that there are 2778 registered manufacturers and installers, and 31,975 people working in the sector, including administrative staff, based on the data included in the annual operation statements delivered to the ministry by the installers.
Additionally, it is declared that a number of companies have received a service adequacy certificate from the Turkish Standards Institute (TSE) regarding the elevator maintenance and repair services for elevators.
Elevator Industry, a strategic industry
The report emphasized that the elevator sector is a sector structure that provides a high level of local employment, and underlined that all the activities carried out by the sector contribute to providing regional job opportunities.
Unlike industrial products like refrigerators, televisions and automobiles, the report emphasizes that elevators are installed on the site at which they will be used, and are required to be periodically maintained and controlled by local people. It is also stated, “Multistory buildings are a solution for the housing problem, while reaching the solution depends on the success of the elevators and the sector. Therefore, the elevator industry can be considered as a strategic industry.”
The report, which also emphasized that the maintenance and repair business provides a big employment potential, explains that it provides job opportunities for a big number of people because of the annual and obligatory periodical controls that must be carried out in order to maintain the safety requirements set out by the related legislation.
Production value and the turnover of the industry
According to the report published by the Ministry, foreign trade volume in 2018 has been around 312 million USD. Keeping the scope of the Turkish elevator industry in mind, the number of annual installations per new buildings, licensing services, periodical controls, component manufacturing, and maintenance and repair services are considered to generate a volume of 1-1.5 billion USD.
Added Value and R&D activities
It is explained that the Turkish elevator industry contributed to regional employment due to its widespread sector structure including installation, maintenance and repair services, whereas Type A Inspection Bodies also provide significant added value with the employment opportunities they provide internally.
Emphasizing that the most important and basic problem of the industry is the lack of or inadequacy of infrastructural developments, it is also observed that the elevator companies are involved in manufacturing with built-in projects.
2014-2023 Projection for the Industry
In the Elevator Industry Report 2019, it is emphasized that the Turkish elevator industry will make a breakthrough together with the urban transformation projects and, in this context, new designs should be developed by prioritizing quality and safety principles in parallel with branding activities. Additionally, it is underlined that there is disunity within the growing industry, which may be hard to turn into an advantage. It is stated, “It is now inevitable that the elements within the Turkish elevator industry should come together and work in cooperation and unity.”
The report says:
Considering that the Housing Development Administration (TOKİ) will concentrate on Urban Renewal and Slum Transformation Projects in cooperation with the municipalities, social housing projects for the low-income group, urban transformation projects in metropolises like Istanbul, Ankara, İzmir, Adana and Diyarbakır, and establishing sample accommodation units in medium-scaled cities and provinces, the construction industry will make a breakthrough as a result, and the Turkish Elevator Industry will make progress as the installation of integrated elevator systems will be required in these buildings.
For the development of the Turkish Elevator Industry and its technological structure, it is obvious that the projects to be carried out by TOKI will provide important opportunities. Therefore, the process should be managed carefully, both in the public and industrial realms.
Developing new designs in the manufacturing of elevators and components through prioritizing the quality and safety principles in parallel with the branding will make important contributions for the growth of market share of the industry, both in domestic and foreign markets.
Considering there are 2.778 elevator manufacturers and installers registered in the industrial registry system, we should be aware that we are faced with a disunited but growing industry structure that may be hard to turn it into advantage. It is inevitable that the elements of the Turkish elevator industry should come together and work in cooperation and unity.
Manufacturers and installers at SME scale should cooperate and collaborate, and should act in unity in terms of supply, marketing, laboratories, production and services, and make common production using medium, high and advanced technology.
The representatives of the industry who came together for acting in unity in terms of supply, marketing, laboratories, production and services, and making common production using medium, high and advanced technology undertake, will continuously undertake an important mission for the industry. The constituents of Turkish elevator industry hold this structure, GETA, as an example or should try to be involved in this structure. In summary, the only exit for the industry will be uniting and acting in sincerity.
The Last Semi-Annual Assessment of the Elevator Industry
The exhibitions held in Istanbul and Izmir have a great importance for the industry
In Elevator Sector Report 2019, which consists of the latest semiannual facts and figures, it is stated that the impacts of the international exhibitions held in Istanbul and Izmir, and the new designs made by Turkish companies, had a positive contribution on foreign trade.
However, it is also underlined that the two different exhibitions, which are simultaneously held, indicate the disunity in the elevator industry. In the report, it is stated that the representatives of the industry should evaluate this issue honestly and work for eliminating this disunity image.
In the report, it is also predicted that the Turkish elevator industry will have an important share in the restructuring of these countries as a result of Turkey's initiatives on the Arabian Peninsula.
In parallel with the development in the construction industry as a result of the Urban Transformation Law, serious developments are expected in the elevator industry in the domestic market.
Production Index of the Industry
It is stated that more than 600,000 elevators have been installed in Turkey, a great majority of these old and new elevators are still in use, the number of installations increase until 2008 and decreased in 2009 due to the global crisis, but again increased as of 2013, 2014, 2015, 2016, 2017 and 2018.
As a result of urban transformation and the Ministry’s efforts toward the implementation of “Increasing the Safety Level of the Existing Elevators,” which became obligatory in 2015, important developments in component manufacturing are expected. In this context, the project “Increasing the Safety Level of the Existing Elevators” is based on the correct management of a self-sufficient industry program that is not dependent on importing.
Local installers prefer imported elevator components and parts
Considering the total import and export data for 2018, the elevator industry generated an export value of 165 million USD while preserving its import value of 146 million USD. The figures indicated that the foreign trade volume was approximately 312 million USD last year.
Through these figures, it is emphasized that the industry had a foreign trade surplus of approximately 18 million USD and, even though we have the capacity and supply to manufacture elevator components, local installers preferred imported products.