Turkey’s manufacturing industries could take at least eight months to recover from the damage wrought by the earthquake at the start of February. The CEO and Co-Founder of the supply chain mapping and monitoring company Resilinc, Bindya Vakil, stated that the nation should prepare for a difficult recovery process. According to her, the company’s estimations are based on historical data from previous such occurrences as well as details about the impact on suppliers’ operations that were provided to the company directly.
Due to an increase in domestic demand in Turkey, exports of some chemicals and plastics are expected to fall for a while
According to the 8-month recovery assessment, facilities should be restored to their “pre-disruption run rate” in 7 months (32 weeks), which in practice implies returning back to normal operations, or as it was before the earthquake. Automotive, textiles, general manufacturing, consumer products, hi-Tech, oil & gas, and industrial chemicals are among the affected industries. Resilience has mapped 900 locations from the industries it monitors (assembling, warehousing, manufacturing, distribution, fabrication, and testing) in the wake of the devastating earthquake that occurred on February 6 and its subsequent ripple effect. More destruction is being revealed every day, and the first earthquake already had a significant impact on Turkey’s Hatay Province before a second one hit.
Although the initial assessment has not changed, there have been further reports of structural damage and power outages, which makes it much more difficult for facilities to continue running while the current humanitarian crisis and reconstruction process is underway. Smart Cube estimates that Turkey has suffered significant economic losses of between 2 billion and 4 billion dollars.
Smart Cube estimates that Turkey has suffered significant economic losses of between 2 billion and 4 billion dollars
Due to an increase in domestic demand in Turkey, exports of some chemicals and plastics are expected to fall for a while. Ashes, soda, fertilisers, and plastics including polyester fibres and polymers are all produced in the earthquake-affected area. These substances are utilised in a variety of industries, including plastic, glass, textile, food processing equipment, and basic packaging. Many chemical companies in the impacted area haven’t yet reported any direct effects of the earthquake, but they expect production and demand to be disrupted.
In the medium term, it is anticipated that Turkey’s steel sector will also remain constrained. Although escaping major damage, Iskenderun’s steel mills, which account for more than 25% of Turkey’s total steel production and Turkey’s own share of the world’s crude steel production market, encountered logistical challenges. The majority of the damage from the earthquake, which also affected parts of Syria and a sizable portion of Turkey, was to Turkish agriculture, raising some concerns about food production.