Seven different professional committees and board of directors within the body of the Young Industrialists and Business People Association (GESIAD) announced the evaluation of 2022 and their expectations from 2023. Stating that the constant exchange rates force the exporters, GESİAD President Murat Kaya said, “Our 2023 average dollar rate expectation should be in the band of 25 TL in order to be able to produce and keep our employment stable, and 30 TL for profitability”.
Seven different professional committees and the board of directors of the Young Industrialists and Businessmen Association (GESIAD) announced the evaluation of 2022 and their expectations from 2023. Stating that they formed sectoral professional committees for the first time in the 32-year history of GESİAD, GESİAD President Murat Kaya said, “We left 2022 behind as a difficult year, to say the least, due to what happened and we were left alone. We faced multiple unknowns due to the problems in our industrial sector’s access to credit, increases in costs, non-competitive exchange rates, recessionist trends in our major markets, and slowing foreign demand.
Due to high inflation, input prices increased unpredictably and this increase was not reflected in prices at the same rate, which put the sectors in trouble. Increasing personnel costs made it difficult to obtain qualified personnel. Despite the increasing costs, the exporter’s profitability decreased due to the suppression of exchange rates, the parity effect and the slowdown in foreign demand.
High tax rates have also become one of the most important problems. Cash flow slowed down due to longer payment terms. There are difficulties encountered in the allocation of loans in the presence of banks. “The year 2022 will probably be recorded as the lowest growth year in the last 30 years after the 2000 and 2009 crises and the 2020 pandemic,” he said.
‘FINANCIAL INSTITUTIONS MUST OPEN THE WAY TO ACCESS TO LOAN’
Stating that the risks and uncertainties regarding the global economy are also very high, Chairman Kaya said, “We entered 2023 with a very high inflation rate, slowdown in growth, an increase in external deficit and public deficit, although it is still decreasing.
We, young entrepreneurs who produce, add value, export and create employment, want to look ahead. In 2023, the main agenda item of the economy management should be the fight against inflation in any case. It is necessary to stay away from the inflationary environment as much as possible. The pressure on it should be loosened and the exchange rate should be brought to a productive and competitive level.
We emphasize that our 2023 average dollar rate expectation should be within the band of 25 TL in order to be able to produce and to keep our employment stable, and in the band of 30 TL for profitability. Financial institutions should pave the way for access to credit under more favorable conditions than today. I don’t want to repeat, but we should not ignore the fact that vocational high schools are a matter of the country,” he said.
‘LACTURING WORKERS MAY BE ADVISED’
Speaking after Murat Kaya, Automotive Committee Chairman Mustafa Samancı said, “After the pandemic, growth accelerated. In 2023, we foresee a slowdown in this growth and a decline in business potential. The fact that the exchange rates are low affects especially the exporters negatively.
Textile Committee Chairman Orhan Aksakal, who stated that they had difficulties as a sector as of the 2nd and 3rd quarters of 2022, emphasized the exchange rates. According to Ali Şahin from Ekonomim, Fatih Kutlucan, Chairman of the Construction Committee, said, “We are experiencing significant difficulties in terms of qualified personnel. Credit support packages are needed.
If these are provided, 2023 will be a good year,” he said. Berkant Arseven, Chairman of the Machinery and Robot Technologies Committee, underlined that they started the new year at a time when cash flow problems were experienced, and said, “There is a need for some conveniences for companies that produce medium-high technology.
‘RULES IN EXCHANGE RATES CAUSE SERIOUS DAMAGES’
We need to import for some products, but the rules on foreign exchange cause us serious damage. Due to the increasing labor costs in the recent period, layoffs are on the agenda,” he said. Tourism Committee Chairman Fırat Yıldız, Cem Network on behalf of the Education and Law Committee, and Recep Dönmez on behalf of the Service Committee underlined that in addition to the problem of qualified personnel, financial barriers and the increased tax burden in the minimum wage would have a negative impact on employment.
Speaking about the gap to be created after the mold part by the end of 2023, Automotive Committee Chairman Mustafa Samancı said, “Togg had a significant positive impact on the market. On the mold side, it brought along a significant acceleration with Ford.
As of this year, many projects will come to an end. In order to fill the gap that will occur at this stage, our industrialist in the molding department has the competence to fill that gap by turning to exports. I think that they will fill the capacity gap formed in this way with exports.”