Carrying 50 million people with 500 thousand active lifts daily, the industry will create national brands that operate on a global scale!
AYSAD presented its strategy of having global, national brands to the Ministry!
AYSAD, the Lift and Escalators Industrialists’ Association, has prepared a “Global Turkish Brands in the Lift Sector: Survey and Suggestions” report at the request of the Turkish Ministry of Industry and Technology.
The report was prepared in light of recent information about the lift sector and presented to the Ministry authorities. It covers the industry’s opinions and suggestions on establishing a domestic and national company. The Turkish Lift sector has a domestic market share which equates to 5% of the total new lifts installed around the World. The report contains striking information about the Turkish lift sector, which has a considerable export volume of lift components, and there are individual lift installation companies in more than 30 countries.
In 2018 there were 15 million active lifts around the world and 3% of those were in Turkey. It is expected that the urbanization rate will rise to 70% in 2050, it is currently 54%. This increase also points to increased demand for new lifts.
There are around 3 thousand lift installation companies in the Turkish Lift sector. 95% of the sector’s market is for lifts in low and medium height buildings of up to 20 floors and the remaining 5% is for lifts in high rise buildings. While 70-75% of manufacturing is done by domestic lift companies, the share of foreign-invested companies is around 25-30%.
6 models are projected for Global Branding
AYSAD Chairman Sefa TARGIT has made a statement about the report they presented to the Ministry. He said the Turkish Lift sector has a great export volume of lift components and there are individual lift installation companies in more than 30 countries. He also underlined the capability of national lift manufacturing and installation companies to meet the country’s demands. He commented that they examined the sector and global brands abroad in detail, and in light of information gathered, they prepared 6 different models to be projected for having domestic and national brands that operate on a global scale. Targıt underlined, each model is projected for different needs and expectations, he said; “For example, selected private sector companies in different fields can gather under one brand to form a newly established lift installation company. There maybe special governmental incentives for this newly established lift installation company. Another suggestion might be, to establish a multi partnered enterprise for a global target with companies in the industry. Or a governmental development-support program could be used to turn some selected active companies, who are qualified in many fields, and have international sales and activity references, into global lift installation companies. The best model will be determined through well-attended consultations. However, we will need qualified entrepreneurs to establish national lift brands and take them global, no matter which model we choose”.
Targıt; “From scrap incentives to energy efficiency certificates; a series of actions can be taken”
Targıt commented that governmental institutions have an important role in creating Turkish domestic and national brands that operate on a global scale. He said; “First, current market conditions will be improved and specific government incentives aimed at the lift industry will be provided. Secondly companies who have global brand potential will be identified using the industry’s record inventory”. He highlighted that public administrations will put joint liabilities into effect and contracting companies shall also be held responsible for the first 10 years, as well as lift and maintenance companies. Targıt also commented that a whole range of applications will be actualised, from rearrangement of lift control companies and their authorisation, to establishing requirements for specific qualifications for exporting lift companies, such as obligatory energy efficiency certificates, to additional measures regarding imports.
“Its not the responsibility of the buyers, competition and low cost pricing sets the lift industry back.”
Targıt mentioned that they also referred to industry-specific issues in the report. He continued; the Turkish Lift Industry is based on European Union Lift Instructions, which are cutting-edge for both manufacturing and application. Since 2003, you must have a CE certificate. According to labour laws this industry is in the hazardous occupation category and a professional competence certificate is required for workers in this sector. It is also mandatory to have yearly lift controls. Despite this, according to current regulations, lift installation companies are held responsible instead of contracting companies and this makes purchasing decisions cost and price-oriented, rather than focused on quality and standards. The sector cannot be developed and lift security problems get bigger, because of the competition it has become solely cost and price-oriented.”
Domestic and national companies, who aim to be global brands, will appear at the 16th International Asansör İstanbul!
Targıt mentioned that AYSAD continues their activities to create national lift brands that can operate on a global scale and underlined that they support the International Asansör Istanbul Fair, one of the top 3 events of its kind worldwide. The fair will take place from 21st – 24th March at Tüyap Fair & Congress Centre. He commented, domestic and national exhibitors will have an opportunity to showcase their new technology on an international scale at the fair’s 16th edition. He continued that they will follow developing technologies in the industry, and meet international companies, including the world’s major players.