Page 298 - Çevre Şehir İklim İngilizce - Sayı 4

The Effects of the 6 February Kahramanmaraş Earthquakes
on the Business World

The manufacturing sector has a share of 19 percent, agriculture and food is
represented by 14 percent, and the construction sector by 12 percent, while
the mining sector has the lowest representation with 1 percent.
While enterprises in the agricultural sector continue their activities with a
capacity of more than 75 percent, these ratios decline to the range of 1/3 – 1/4
in the trade and service sectors. The lowest capacity ratios were reported by
enterprises in Adiyaman and Hatay. While it is expected to start operations
in the agricultural sector within 1-1.5 months, these periods amount to 3-4
months in manufacturing and service sectors, and exceed 6 months in trade
and construction sectors.
Due to the passing away of people in the region, migration to other
provinces or lack of motivation, there was a loss of labor force of more than
50 percent and capacity reductions were deepened. The largest loss of labor
force is in Hatay and has approached 70 percent. Considering the responses of
the interviewed enterprises regarding the labor losses, it is observed that labor
losses in the manufacturing, construction and wholesale-retail trade sectors
are approaching 60 percent, the highest losses in these sectors are reported
in Hatay which is followed by Malatya. On the other hand, it is observed that
the number of employees in the service and agricultural sectors decreased by
about 50 percent, the highest decreases were reported in the agricultural sector
in Hatay and in the service sector in Malatya. Although the low capacities in the
agricultural sector are mostly justified by the lack of labor force, it is estimated
that the damage to the enterprises processing agricultural products will also
negatively affect the sector, and this is an issue that needs to be taken urgent
measures since the harvest period is getting closer.
Due to the earthquake, the stocks of enterprises were damaged and the need
for new warehouses emerged. After the earthquake, the products in the stocks
of enterprises in the manufacturing, trade or agricultural sector were trapped
under the debris or damaged due to the destruction of their warehouses.
The supply chain was broken and product supply became difficult. The vast
majority of the companies, especially the manufacturing and retail enterprises
interviewed, usually meet their product supplies from the region, and therefore
there are significant disruptions after the earthquake.
2 out of 3 enterprises in the region do not have insurance. Considering
those who provided information about the insurance status of the companies
interviewed, it is observed that the companies that stated having insurance,
only reported their DASK or vehicle insurance, their insurance policies do not
cover the earthquake or their workplaces and products.

Year 2 / Issue 4 / July 2023 287