Furniture sector in need of R&D to compete in global markets
by Daily Sabah with IHA
ISTANBULJan 27, 2015 - 12:00 am GMT+3
by Daily Sabah with IHA
Jan 27, 2015 12:00 am
The 11th Istanbul Furniture Fair opened yesterday at the Istanbul Expo Center CNR EXPO with a ceremony attended by Finance Minister Mehmet Şimşek. In his opening speech, Şimşek said, "I believe it is very significant that a design contest was organized within the scope of this fair because we need to continue to research, develop and design if we want to compete against Italy. We eased the terms last year so that the sector can benefit from research and development support. If the furniture sector is going to compete with the world and if it is going increase its volume to $25 billion and its exports to $10 billion by 2023, new designs, research and development will play a great role in those aims starting from today."
Addressing the problems of unregistered companies, Şimşek said that unregistered and unmonitored businesses are a disadvantage for the sector because when companies work with honest records, the balance sheet and income statement becomes clearer. Moreover, the company's credibility rises, so they can easily reach financial resources. On the other hand, unregistered companies cannot grow because their income statements do not reflect the truth; therefore, they have trouble finding the necessary financial resources. "Since they cannot grow, the sector also cannot grow, which is making competition difficult," Şimşek said. Emphasizing that political stability is contributing to the growth of the furniture sector, Şimşek stressed, "There is a close relationship between the long-term future of the sector and political stability. When there is stability, Turkey grows faster; thus, the demand for products in the sector increases. When you look at the foreign demand last year, you can see the Turkish furniture sector managed to increase its exports despite the crisis in Europe and conflicts in the Middle East, which is a huge success."
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