German companies in Turkey may not have much idea about how Covid-19 may affect their businesses in the short term. However, a small group, a mere 6 percent, have received orders that could turn them into alternative suppliers for European companies, according to a survey conducted by the German-Turkish Chamber of Commerce and Industry (AHK) in Istanbul.
Half of the surveyed companies, 71 were unable to respond to how Covid-19 would affect their businesses, the AHK report said. Some 38 percent expect a decrease in their revenues while 5.7 percent see an opportunity, according to the survey results.
Some 142 members out of 900 participated in the survey. Respondents were mainly from tourism and accommodations, automotive, energy trade and finance industries. Around 20 percent of companies expect significant setbacks. The majority of them expect a decrease in their businesses due to limitations in business travel and cancelled fairs and conferences.
A DIFFICULT PERIOD IS AHEAD
In terms of government guidance, German companies are hoping for clear instructions pertaining to employer and employee relations, tax discounts, credits and loans, and state supports to cover import and export risks.
The research showed that company executives are unable make sound projections on the issue, Dr. Thilo Pahl, the general secretary of AHK in Istanbul, said. A difficult period is ahead, and it is time to act cautiously, he added.