44 Turkish Firms Among Top 250 Contractors Globally
Turkish companies make up almost one-fifth of the top 250 contracting firms globally, according to the US’ Engineering News Record (ENR), Turkey’s trade minister said on Tuesday (August 25).
With 44 firms on the list, Turkey ranked second by number on ENR’s 2020 Top 250 International Contractors list, and seventh by total revenues, Ruhsar Pekcan told a meeting organized by the Turkish Contractors Association.
Spanish firm ACS was the top firm, followed by Hochtief Aktiengesellschaft (Germany) and Vinci (France), according to ENR.
Turkish contractors' revenues not affected despite COVID-19
Pekcan noted that while the top 250 firms' revenues have fallen 3% in 2020 due to global uncertainties and the COVID-19 pandemic, Turkish contractors' revenue has not seen any negative impact.
"This is an indication of the adaptation, dynamism and strength of our contracting companies to difficult conditions," she underlined.
The Turkish contracting sector has tackled projects worth $407 billion in 127 countries since 1972, including $50 billion in 1972-2002 and $357 billion since 2002, she highlighted.
Last year the sector took on projects worth $19 billion despite trade wars and political uncertainties, she said, and added: "We targeted over $20 billion for 2020 but the pandemic affected negatively international projects."
After the pandemic, Turkey will see projects top $20 billion, she said.
Nationalistic reactions to the crisis also are taking a toll, even where projects continue. “Closed borders and not being able to transport materials have been common issues for almost every business for construction, literally bringing some projects to halt,” says Emre Baki, CFO of Renaissance Construction, Turkey.
Some contractors fear the pandemic may lead to an international recession, further dampening the construction market. Some firms say this is likely if the U.S. economy continues to sag. If the spread of the virus in the U.S. continues at the current pace, it “will be a threat to the world economy and in the long term,” says Burhan Kurt, president of Turkey’s Ant Yapi US Holding Corp.
Worries about Europe
The European construction market is trying to come to terms with the impact of the virus. The U.K. had an already uncertain future because of its pending departure from the European Union. “Brexit’s impact on the future of the United Kingdom is expected to be profound and unpredictable,” says Kurt of Ant Yapi.
Middle East market hindered by the virus
The Middle East market has been severely hindered by the virus and the resulting plunge in oil prices. “While on one hand the instability in crude oil prices has adversely affected investments in the infrastructure space, on the other, COVID-19 has severely disrupted progress across projects,” says S.N. Subrahmanyan, CEO of India’s Larsen & Toubro Ltd. The firm will exercise caution in picking future projects. He says most Gulf Cooperation Council (GCC) countries are on a “wait-and-watch” mode, “raising doubts about their ability to finance large infrastructure projects, maintain cash flows [and] stretching timelines to both approve and execute current and fresh projects.”
Edited by Ziyad Veis based on ENR, AA
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