The effectiveness of the five-year development plans on the development of the construction sector

Abstract

With the increase in competition competitive advantage becomes even more important for the survivability of the companies. Due to their influence on the orientation of companies the effectiveness of the five-year development plans are important to achieve a competitive advantage for the companies. The materials sector plays an important role in Turkish industry and economy in general. As was emphasized by Güneş et al. (2004: 44) construction material production has a 10% share in Turkish industry. Focusing on iron-steel glass ceramic and cement sectors the purposes of this study are: to provide information to the companies about the sector to contribute to the companies in their effort to evaluate future opportunities and threats to contribute the survivability and competitiveness of the companies. A literature survey on strategic plans and state development plans was carried out. Within the scope of the research relevant statistics obtained from State Statistic Institute and Central Bank of Republic of Turkey were analyzed. Possible future developments of the material sector were also focused upon. In order to understand how five year development plans are perceived by the construction companies and also what the opinions of the Turkish construction companies are about why these plans can not be accomplished wholly as they were planed a questionnaire was prepared and applied to the companies which are members of the Turkish Contractors' Association (TCA). The literature survey indicated that the material industry was effected by the 2002 economic crises in Turkey and other ongoing economic fluctuations. The answers given in the questionnaire indicated that the companies do not think that the five year development plans are entirely accomplished. The research revealed that although the five year development plans could not be entirely accomplished and even though they are not efficient enough they still provided a guide to the companies so that the industries could overcome the difficulties emerging from the 2002 economic crises. The research also concluded that there is a need to increase the efficiency and effectiveness of the five year development plans. © 2012 Elsevier B.V. All rights reserved.