Construction equipment sector hopeful for 2013

ISTANBUL - Anatolia News Agency

AA Photo

Sales of Turkish heavy construction equipment grew by 13 percent last year, but the sector has its eyes on more growth with predictions that nationwide urban transformation projects, Istanbul’s third airport and upcoming municipal elections in 2014 will soup up sales.

“The sector’s growth in 2012 seems low compared to previous years as growth in 2009 was 100 percent and growth in 2010 was 40 percent, but still it’s above the Turkish economy,” says Cüneyt Divriş, the chairman of the Turkish Heavy Equipment Distributors and Exporters Union.

Despite relatively low growth, Divriş asserted the government’s incentive for leasing VATs, which was introduced in 2011 along with policies of the central bank, have had prominent effects upon the sector.

The Turkish government is expected to create a more “tax-neutral” environment and increase the number of issuances of leasing certificates by introducing a tax incentive for leasing certificates that benefit the construction sector.

For the forthcoming year, the sector is expected to soar along with the construction sector, which will be elevated by a number of new, comprehensive projects. These projects include construction of Istanbul’s third airport, urban transformation projects and the Izmir-Istanbul highway project. Moreover, the municipal elections, which will be held in 2014, will prompt urban projects that will create job opportunities for heavy construction equipment.