Aggressive exporters help economy
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by TAYLAN BİLGİÇ
Oluşturulma Tarihi: Temmuz 01, 2009 00:00
ISTANBUL - The global logistics sector has been hit hard by the worldwide crisis, but Turkish exporters have managed to lessen the damage, according to Michel Akavi, DHLExpress regional director. ’Exporters seem to be experienced in crisis management, as we see a geographical and industrial diversity in shipments,’he says
While economists discuss "green shoots," incoming positive economic data that could signal the world is getting out of the worst recession since the 1930s, one may observe the developments in the logistics industry as a signal of what’s going on globally.
Michel Akavi, DHL Express regional director of Europe, the Middle East and Africa, says a different type of economy will emerge in the aftermath of the crisis.
Speaking to the Hürriyet Daily News & Economic Review, Akavi said customers of firm experienced sharp reductions in demand during the final quarter of 2008. "This weakness has continued in 2009," he said. "And it has translated into a decline in business volumes for the logistics industry. It is estimated that the global forwarding business is down about 30 percent."
Turkey is affected less than its peers, Akavi said. "If we look at the total Turkish market, I estimate a decline of 20 percent."
The post-crisis economy will be more "regional," he said. "China is now the world’s factory. But the difference in salaries between Eastern Europe and China is decreasing. With oil rising again, it will no longer be convenient to transfer goods from China to Europe. Companies will precisely tend to regionalize production."
Turkey’s advantage is that strong marketing helps exporters win market share, according to Akavi. "Turkey can serve European countries fast, the quality of production is high and it can produce in smaller quantities," he said. "On the other hand, a strong demand from the Gulf and Middle East has started. Turkish exporters seem to be experienced in crisis management, as we can see a geographical and industrial diversity in shipments," he said.
Years of turmoil
Akavi, who began his DHL career at DHL Turkey, has witnessed first-hand how exporters gained this experience. Despite political instability in the 1990s, the devastating Aug. 17, 1999 earthquake in the Marmara region, and the financial crisis of 2001, DHL Turkey managed to post strong results.
"We managed to control our local costs, which allowed us to be more competitive," he told the Daily News. "Our revenue has doubled over the past few years. We increased our productivity and now have a market share of over 50 percent." For the past few years, DHL Turkey has been among the best in the DHL world.
Turkey’s uniqueness lies in its ability to unite the cultural diversity of the East and West, blending tradition with modernity, according to Akavi. "Its location, acting as the connecting point between two continents, with access to the Mediterranean and the Black Sea, makes Turkey a key spot for integrated transport and logistics services."
"Due to high inflation rates, unstable political environment and poor governance, not to mention natural disasters and terrorist attacks, Turkey has not been able to achieve its real potential yet," he continued. "Turkey’s push toward the European Union will stimulate foreign direct investment and consequently transportation. Turkey is a strong local industrial base, exporting 17,000 different products to over 200 countries."
"Turkey’s export strength singles it out from other emerging economies such as Russia, Israel or Middle East nations, who are all big importers, but which don’t export much besides oil and gas," Akavi said. In this sense, Turkey offers a good opportunity for transportation and logistics companies.
Michel Akavi, DHL Express regional director of Europe, the Middle East and Africa, says a different type of economy will emerge in the aftermath of the crisis.
Speaking to the Hürriyet Daily News & Economic Review, Akavi said customers of firm experienced sharp reductions in demand during the final quarter of 2008. "This weakness has continued in 2009," he said. "And it has translated into a decline in business volumes for the logistics industry. It is estimated that the global forwarding business is down about 30 percent."
Turkey is affected less than its peers, Akavi said. "If we look at the total Turkish market, I estimate a decline of 20 percent."
The post-crisis economy will be more "regional," he said. "China is now the world’s factory. But the difference in salaries between Eastern Europe and China is decreasing. With oil rising again, it will no longer be convenient to transfer goods from China to Europe. Companies will precisely tend to regionalize production."
Turkey’s advantage is that strong marketing helps exporters win market share, according to Akavi. "Turkey can serve European countries fast, the quality of production is high and it can produce in smaller quantities," he said. "On the other hand, a strong demand from the Gulf and Middle East has started. Turkish exporters seem to be experienced in crisis management, as we can see a geographical and industrial diversity in shipments," he said.
Years of turmoil
Akavi, who began his DHL career at DHL Turkey, has witnessed first-hand how exporters gained this experience. Despite political instability in the 1990s, the devastating Aug. 17, 1999 earthquake in the Marmara region, and the financial crisis of 2001, DHL Turkey managed to post strong results.
"We managed to control our local costs, which allowed us to be more competitive," he told the Daily News. "Our revenue has doubled over the past few years. We increased our productivity and now have a market share of over 50 percent." For the past few years, DHL Turkey has been among the best in the DHL world.
Turkey’s uniqueness lies in its ability to unite the cultural diversity of the East and West, blending tradition with modernity, according to Akavi. "Its location, acting as the connecting point between two continents, with access to the Mediterranean and the Black Sea, makes Turkey a key spot for integrated transport and logistics services."
"Due to high inflation rates, unstable political environment and poor governance, not to mention natural disasters and terrorist attacks, Turkey has not been able to achieve its real potential yet," he continued. "Turkey’s push toward the European Union will stimulate foreign direct investment and consequently transportation. Turkey is a strong local industrial base, exporting 17,000 different products to over 200 countries."
"Turkey’s export strength singles it out from other emerging economies such as Russia, Israel or Middle East nations, who are all big importers, but which don’t export much besides oil and gas," Akavi said. In this sense, Turkey offers a good opportunity for transportation and logistics companies.