After the calamity, the works for the reformation of trade and the restoration of the cities in the affected regions which affected by the eartquake continued at full speed. İsmail Gülle, Former President of the Turkish Exporters Assembly (TİM) and Chairman of the Board of Directors at Gülle Tekstil, who underlined that the biggest solidarity and the state of ownership was true against the biggest catastrophy ever witnessed, said, ‘’In exports this year, in comparison to the previous year, the target was around $275 billion with a 10 percent growth. Despite this calamity, staying on this goal will be a very important achievement.’’
İsmail Gülle made evaluations on the ongoing works for the recovery after the Kahramanmaraş-centered earthquakes, the current situation of the industry corporations around affected regions, the affect of the earthquake both for the economy and for the exports and offered solution proposals at the press conference. Gülle emphasized on the big targets also for this year and the necessity to building permanent homes, konteyner residences and schools for the continuity of living areas, especially production facilities around the earthquake areas to provide this, Gülle said, ‘’There is a path to follow. We achieved a great success story in 2021. In this success story, logistics provided us a greater benefit. A surplus of $25 billion in exports. We successfully managed to reach the target of $250 billion dollars, at above $250 billion dollars in 2022.”
On the morning of 6 February, the country leaving their beds in an earthquake at a ‘calamity of the century.’ From the first day, the state and the community bringing in all of their means to recover from this disaster and to return daily life to its normalization and to set an example to world nations by combining our efforts. Gülle while talking about their high-set expectations with the hopes in the 100th year,"We had great expectations both in the period we served and in the 100th anniversary of our state. It was a year in which very big targets would crown everything. Therefore, we hoped to get off a good start but due to the conjuncture-centered influence in the world and the earthquake disaster we experienced which all pushed us all into a very different spiritual world. So, we're all still living it and talking about it."
An Exemplary Collaboration to the World
While mentioning about the biggest calamity which was ever seen which countered by the great solidarity and the state of ownership against the earthquake, Gülle, ‘’I would not make an exaggeration if I could say I have never seen such a unity and such a cooperation neither as a creation or as a nation in such troubled times. This great bond of unity surely sets an example to the world. In all associated institutions and NGOs, we are actively taking part in the recovery by meeting the daily demands of citizens at affected areas via cooperating together within the organizations.’’
“The Earthquake Region Carries a Strong Export Infrastructure”
While emphasizing on the losses and moving population, Gülle said that following the earthquake, the works continued at full speed for the rejuvenation of trade in regions and for the recovery of the cities around affected regions. İsmail Gülle, “There is a very strong export infrastructure covering 8-9 percent of Turkey in the earthquake region, there are existing investments, and there is growth. We can see that the biggest impact was on Kahramanmaraş, Adıyaman, Hatay and Malatya and it is also prevalent that other regions are under effect depending their own conditions. But the biggest export losses can be seen around Kahramanmaraş and Hatay. Gaziantep has an export power of over $10 billion dollars, and we can see that this has seen a sharp reduction. Maraş has an export power at around $1.6 billion dollars. We can see that it was also affected from this period as the biggest factory damage was recorded there. With this spirit of unity, we should unite as a whole and we should show a greater solidarity with all of our citizens apart from any type or any kind of things.’’
“We Should Stay On Our Export Target”
While stating that the catastrophies affected us before and sharing own personal will to pass on this troubled earthquake via uniting as a nation, Gülle, ‘’Since this calamity is a destructive one, it may remain its damage for quite a while, but what is important is to carry on this present circumstance while maintaing it. The most important task for us is to pass on this disaster with a least damage with the growth-oriented export strategy which sets as the most fundemantal both in the government's action plan and for all of us. In other words, this year, a target was set around $275 billion dollars with a 10% growth in exports compared to last year. With the Allah’s will, despite this disaster, it will be a very important move to continue on this target. But it will not be easy to remedy and to recover this in a very short period in this process. Because, in some places, as greater damage occured, remedy process may take longer than expected. Most importantly, to heal people emotionally, to make them productive and to make them operative. Our part is to support this, instead of demoralizing or coming out with some demoralizing things, we should work to achieve better via placing morale on us and through visualizing the better. We have full hope that we will overcome this calamity of the century by cooperating as a state and a nation.’’
Permanent Housing for the Continuation of Production
Gülle emphasized on the big targets for this year and the necessity to building permanent homes, konteyner residences and schools for the continuity of living areas, especially production facilities and for the continuation of training and daily lives around the earthquake areas to provide this, ‘’There is a path to follow. We achieved a great success story in 2021. In this success story, logistics provided us a greater benefit. A surplus of $25 billion in exports. We successfully managed to reach the target of $250 billion dollars, at above $250 billion dollars in 2022. As far as we can see from the market and the sector, it is apparent that the customers we bring in, which we earn by benefiting from the logistics and also the supply center advantage which applies under the conditions of the day, are moving away from us because of the prices. We can see that some orders are changing their route to the Far East due to the fall in logistics prices. This situation; in terms of our export performance as well, will also bring us a period in which we have to work harder, train harder, and compete more in the price and cost triangle."
“We Lose Competition With The Exchange Rate, We Cannot Export is a False Perception”
Gülle continued as follows, ‘’Exchange rate term when talking about export, and export when talking about exchange rate are two inseperable items. Exchange rate, of course, is an important parameter. The road seems to continue on this path to the end but when we look at the point of exchange rate totally, it will lead us to more false path. By diminishing the value of our currency, giving a such perception for Turkey is false like ‘’we are losing our competitive power with the exchange rate, we are not able to export’’ It would be unfair to create a perception for the owner like ‘’If there is an exchange rate then there is an export, when there is no exchange rate then there is no export'. For about 8 months, the exchange rate has been following a certain path, according to this perception, we should not have been able to export at all. Exchange rate is of course a factor for competition, but it is not the only factor alone. We are a country that has chosen the path of progress by increasing the export unit kilogram and that is producing more valuable, rather than giving away their values cheaply. After the pandemic, we said that ‘there is a new world order and this world order will continue’ and we are living it. We have seen that the inflation figure, which has been disregarded for years, is the main important factor. We are all living this together, every country experiences it now. In the framework of this inflation, of course, in cost parameters, the exporter asks and will continue to demand an exchange rate that will bear at least.”
Discount Request for Low Inflation
Inflation is the common problem for the whole world these days. Central banks around the world take positions against inflation. Our central bank is taking steps in this direction. Stating that the Central Bank aims to keep the exchange rate stable in line with the inflation target, Gülle said, "We said that if there are reductions here, at least in terms of costs, 'Central Bank's hand will get stronger,' about this issue and we said that in December for January, in January for February, and in February for March, discounts followed by one another. We believe that these discounts will make a significant contribution to both costs and the competition. With the Allah’s will, such a discount figure will be available in March for the month of April and this improvement will continue."
“Ready Wearers Turned to Import”
Gülle stated that as the sector, stocks have been created in this process, especially since the last quarter of last year, since there has been a decrease in orders and business; "When we evaluated this situation with our friends in the industry, unfortunately, they said that our ready-made clothing brands and some of our companies in our country are turning to imports, and this is the last thing to happen. Our values here shoud lie less on imports by producing a little cheaper and by using the advantage of exchange rate a little more instead of running our factories. In my opinion, it is not very ethical and especially today it is not. I mean, I'm not saying that importing is unethical, but today it is unethical, especially for products that have substitutes for us. While we have such a domestic production capacity, we should be able to produce it by ourselves today. As a result, if we are to talk about the country, growth, advancement, development and export in a place, when we experienced the catastrophy of the century, we need to be a little more realistic, we need to be a little more sensitive, we need to love this country more than normal. To love more than usual means; 'today you should consider your country, not your interests'. You will produce it in your country and buy it from your country."
