Increase in Industrial Production: Construction Materials Rose by 4 Percent

According to the report, production increased in 15 of the 23 subsectors, while a decline was observed in 8 sectors.

During the January–May 2025 period, compared to the same period last year, production of plastic construction materials increased by 13.9 percent, production of gypsum products for construction purposes increased by 16.0 percent, production of heating, cooling, and ventilation equipment by 9.3 percent, production of metal doors and windows by 8.9 percent, production of insulated cables by 9.9 percent, and production of ceramic coating materials by 5.7 percent compared to the same period last year. During the same period, production of iron and steel construction products grew by 5.4 percent, while production of marble and granite grew by 6.1 percent.

On the other hand, some subsectors experienced significant declines in production performance during the same period. Production of ceramic sanitary ware fell by 17.9 percent, production of locks and hardware by 16.2 percent, and production of fixtures, faucets, valves, and fittings by 9.6 percent. The report emphasized that the differing production trends observed in 2023 and 2024 largely continued in the first five months of 2025. In particular, the weakness observed in the production of cement, ready-mix concrete, and rebar indicated a slowdown in new construction starts.

U.S. TARIFF HIKES COULD PRESENT AN OPPORTUNITY FOR TURKEY’S CONSTRUCTION MATERIALS INDUSTRY

Another significant development highlighted in the report was the U.S.’s implementation of new additional tariffs on imports. The U.S. administration announced that, effective August 7, while maintaining existing customs duties, it would begin imposing additional tariffs at varying rates on different countries. It was stated that a 15 percent additional tariff would be applied to Turkey. This rate remained lower than the tariffs applied to many other countries. For example, a 50 percent tariff will be applied to Brazil, 25 percent to India, and 35 percent to Canada. A 25 percent tariff will be imposed on Mexico, but this process has been suspended for 90 days to extend negotiations. No additional tariffs will be applied to products imported from Canada and Mexico that fall under the current USMCA agreement.

The U.S. has reached agreements with the European Union, Japan, and South Korea to apply only a 15 percent additional tariff to these countries and has agreed not to impose retaliatory tariffs. Under the interim agreement with China, mutual tariffs of 30 percent are still in effect, and negotiations are expected to continue until August 12. Turkey, meanwhile, stands out among countries with relatively low tariff rates in the U.S. market. The report emphasized that the construction materials industry—particularly products other than metal goods—will gain a competitive advantage in the U.S. market relative to the higher tariffs applied to Asian countries.