AGtek has left 10 years behind in the industry. What ways have your company gone through? Could you share its story with us? What are your product groups and production operations?
As you know, we celebrated our 10th year last month. We are all aware of the problems in our industry. Since the beginning, we have been very much keen on manufacturing product groups from wire, and we have advanced pretty much in doing this. Evaluating the demands from our clients, we started manufacturing cash register counter. As a result of this, we are compelled to give cash register counter service. Thus, we have included service support to our product spectrum and spread this service all around Turkey. I should also tell that as a result of high demand, we have been building turn-key stores in the last 2 years and we are getting very affirmative feedbacks.
Could you tell us about your investments on production area and machinery you made early this year along with your new workspace and goals?
Early this year, we expanded our production facilities by 5000 m2 indoor and 2000m2 outdoor and we have moved our mounting facilities, showrooms, and offices there. We speeded up our production by settling machinery on this area. Considering the high competition in our industry, I suppose this description will be enough about our machinery.
What are your production investment plans for the future?
Costs in our industry rise year by year. Considering that companies do not wish to bear these costs, we set our investment plans according to this. For sure, human and qualified labor come first… Vast majority of our investments are made on training workforce and we will go on doing so. Our primary goal is high qualified, sustainable, and scalable production with well-trained workforce.
Comparing the last year, how would you evaluate the first quarter of 2018?
I can say it was quite active and interesting. As you know, as AGtek, we work with supermarket chains. Supermarkets went on opening new branches without any interruption. For this reason, activity in our industry continued to rise and for the first quartet we grew pretty much in real terms. It was interesting, because there is a serious cash shortage in the market. Shortly, we can say it was a “a lot of work, but no money” quarter.
What is your current situation in foreign trade and what are your goals for this?
This is what we suffer a lot. Due to high demand, we spend most of our energy on the domestic market. As AGtek family, our primary goal is to earn 25% of our turnover out of export. There are some abroad turn-key store projects and bids we have given so far. These are affirmative developments.
Could you tell us about your foresights and recommendations about the development of supermarket and store hardware in Turkey?
We predict that this high activity in the industry will go on for the next 2-3 years. According to the data we acquire from Ortakalan, by the end of April 2018, 19.600 stores out of 29.300 are bounded to 3 big groups. This is about 70%. We strongly believe that revisions, replacements, and new openings will continue.
Do you have any message for chain supermarket managers?
Unfortunately in country price is more important than quality and service when purchasing fixtures. This situation causes to establishments paying no tax, employing uninsured workers, and manufacturing poor quality products. Supermarkets and stores are compelled to renew their fixtures because of these poor quality products and their expenses rise unintentionally. We would like to recommend them not to ever satisfy from qualified products and service to avoid these unwanted expenses.