Article Number : 1220 |
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| Date | 7/26/2006 9:36:30 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1220 |
| Abstract | By Matthew Spieler Istanbul, Turkey—In the world of ceramic/porcelain tile, Italy and Spain usually come to mind first... |
| Article | By Matthew Spieler Istanbul, Turkey—In the world of ceramic/porcelain tile, Italy and Spain usually come to mind first. But don’t be surprised if in a few years Turkey gets added to the list, thanks to a successful Trade Mission organized by the Ceramic Tile Distributors Association (CTDA) and the Turkish Ceramics Federation (TCF). The week-long trip gave approximately 150 U.S. industry representatives the opportunity to meet face-to-face with some of the country’s top tile producers, in both a tradeshow environment as well as factory visits. Turkey, which has a 7,000-year history of making ceramic tile, is already considered the fifth largest producer in the world with an annual capacity reaching 990 million square feet last year. But, it only accounts for about 5.6% of the tile imported into the U.S. and 2.2% of all tile purchased in America. While this only represents approximately $48.3 million it is far more business than the $4.25 million it was doing in the U.S. in 1995. The U.S. currently makes up nearly 13% of Turkey’s total tile exports, up from 3.45% in 1995. It is in these figures that both the TCF and CTDA see opportunity. Kürsad Tuzmen, Turkey’s Minister of State and Undersecretary of Foreign Trade, spoke to the delegation about the importance placed on increasing business with the U.S. by his country overall and in particular with the ceramic tile sector. “Last year,” he explained, “we implemented a strategy to grow business in the U.S. because our export share is far below compared to others. “We have made many advancements in our ceramic industry—one of our most prominent sectors—and in recent years it has become one of our shining stars. Ceramic was born here and has always been an art. Today, Turkey sells quality and we are trying to meet the sophisticated tastes of the U.S.” While participants were shown first-hand the quality of product being made, the Trade Mission was more about forging long-term relationships, said Adnan Polat, TCF’s president as well as CEO of Polat Holding, the parent company of Ege Seramik, Turkey’s second largest tile producer and its largest exporter to the U.S. At the final dinner event of the trip, Polat told the audience, “We can do business in different countries, but we should enjoy it—we can mix business and fun and while we had a number of long days, I don’t see any tired eyes. “Tonight marks the end of the beginning; the start of a fresh new understanding between us,” he continued. “Those who did not come on this Trade Mission will be jealous—and they deserve to be. The history of ceramic is written in Turkey, and so will its future.” Mark Carlson, CTDA’s president and vice president/general manager of Century Tile & Supply Co. in Illinois, summed up the event with one word: “Wow. It’s been something we’ve talked a while about putting together and put countless hours in planning this, and Turkey and its people did not let us down one bit. They not only taught us about its industry, but its rich history and culture and we are truly thankful.” “It is a wonderful opportunity, personally and professionally,” he noted, “and it reminds all of us that tile is an international marketplace. Despite the advent of the Internet, e-mail and wireless communications, the personal touch—meeting face-to-face—remains the hallmark of successful business ventures. It works locally, nationally and internationally.” Even though some members of the trade mission had previously visited Turkey and some have done or do business with either a tile or stone producer, Carlson pointed out “being able to partner through CTDA is a great advantage for those who are participating. This type of trip and the contacts made would have taken years to develop.” While a few of the participants had prior knowledge of the country and ceramic industry, the vast majority of the attendees didn’t. So, TCF planned an extensive trip that included not only the trade-show and factory visits, but excursions to some of the country’s most famous archeological sites, palaces, museums, places of worship, and even a three-hour cruise along the Bosphorus river, which divides Istanbul between Europe and Asia, the only such city in the world split between two continents. Tim Irvin, general manager of Conestoga Tile Distributors in Troy, Va., felt “the Trade Mission was handled very professionally and with the utmost hospitality. How the trip will affect U.S./Turkish trade with regard to ceramic remains to be seen. Obviously, those who were able to participate should feel a greater camaraderie and be inclined to increase their dealings with Turkey’s factories. Certainly, increased imports from them has the ability to elevate Turkey’s status globally.” Irvin’s speculation as to how the trip will affect business was immediately answered by a number of participants. For many, the non-business part of the mission played a large part in their desire to now do business or enhance their business with the Turkish factories. “I thought the Trade Mission was tremendous and very effective,” said Paul Young, general manager of Mediterranea/Architectural Imports in Doral, Fla. “One of the great barriers of Turkey is the impression many here in the U.S. have of it being like Iraq or Iran. Visiting the country helps you to understand this is not at all correct and that it is more like Europe. Also, some of the factories there are coming up very well with product design and capital investments to increase volume and technological capabilities. I truly believe Turkey is one of the top places to be globally right now for tile.” He noted the company was already doing business with Ege prior to the trip, but “we are going to increase our business tremendously with Turkey—adding one to three more manufacturers to our portfolio.” Harold Sanger, president of AMC Tile Supply in St. Louis, noted his company never imported directly from Turkey but has bought Turkish products through domestic suppliers. Following the trip, he noted, “I think the chances are good that we will figure out a way to do business directly with someone there. We do not intend to move away from domestic sources, however this exposure gives us some insight into the possible creation of an import program and the inclusion of Turkish products in that program.” Part of this desire stems directly from what took place during the trip, which he described as “absolutely first class. Any preconceived notions we had about Turkey totally went out the window. If the intent of the Turkish Federation was to create a face-to-face relationship with the members of CTDA, dispel unfounded impressions of the country and expose some typically sheltered Americans to some glorious history, then I would say it succeeded 100%.” Bob Hart, vice president and CFO of United Tile in Portland, Ore., said the trip accomplished its goal with him. Prior to it, the company only imported Turkish stone for about four years. Since returning home, though “we have already ordered material from Ege. We are also looking at Kale and Granisor. The ceramic products were very nice looking and well priced. “The Trade Mission really surpassed my expectations,” he added. “They treated us very well and made a huge impression on us. I think we forged long lasting relationships because of this trip, and we will definitely continue to increase our ‘investment’ in this country. The manufacturing plants that we saw were first class and the people are very nice and honorable. It is definitely a country with which we have become comfortable doing business. This was not the case before this trip.” Even those who had stopped buying tile from Turkey are doing an about face thanks to the excursion. Neal Wallner, vice president of Lexco Tile & Stone in Milwaukee, had been buying containers from Turkey for several years but stopped a year or so ago because “the series we were buying became ‘old’ and the new products didn’t seem good for our market. But, with what we did see at the meetings, we most likely will start buying again and increase our business with one or more factories.” “It was one of the best organized travel events in which I have participated,” said Marc Rosenkrantz, vice president of Marble, Stone, Tile Insurance Connection in Summit, N.J. “It can only help with the exchange of trade.” Rich Church, CTDA’s executive director, confirmed what the members who attended said. “We felt the Turkish people and trade association did a marvelous job of planning and hosting the event. They have set the bar quite high for future trade missions. I also think they will see return on their investment. Many of the distributors I spoke with were already talking about buying tile from one or more of the Turkish manufacturers they met.” He noted the association will be conducting a series of surveys over the next year to determine the growth of Turkish tile being imported compared to what it was prior to the mission. Due to the success of this trip, Church concluded, “the participants were so pleased many are asking when (and where) the next trip will be. We are planning to do more of these. Some possible future locations include China, Brazil, Spain and Italy.” For more on CTDA, call 630/545-9415. |