Clusters and Competitive Advantage_5 docx

80 Clusters and Competitive Advantage place to internationalize.’ In a similar vein, another interviewee stated that the real masters of this business were now in Istanbul. Besides, he argued, since Istanbul had a larger number of a relatively well-off people there was a significant demand for high-quality designer furniture there, whereas Ankara was a ‘civil-servant city’ (meaning customers with limited purchasing power): ‘If you are looking for something of really good quality, you should go to Istanbul. Istanbul is also the place if you are planning to buy furniture accessories and imported materials. As a producer, you have more opportun- ities to prove yourself in Istanbul. Here you are in a way hidden. Istanbul is much better connected to the international markets than is Ankara, in terms of both contacts and infrastructure.’ The decline in the image of the Siteler cluster is also evident in the following remarks by another interviewee: ‘There is a street between my firm and Siteler. When I say that, some potential customers are relieved.’ Despite the relative decline in its image, however, ‘made in Ankara’ furniture continues to have a better reputation than furniture produced in many other clusters in Turkey. Interestingly, one of the firms in Siteler had considered opening a branch in Inegöl in order to make use of the export connections of the cluster there, but had later decided that such a move could damage the image of the firm because Inegöl was associated with cheaper and lower-quality products. Nevertheless the newly emerging clusters are severely affecting the firms in Siteler by imposing a strong downward pressure on prices. A related issue is the limitation imposed by the structure of the buildings in Siteler, which is one of the reasons why several of the larger firms are moving out of the district. Siteler is composed of apartment-style buildings so production has to be spread over several floors, meaning that heavy furniture, materials and machinery have to be moved up and down stairs and through narrow doors. 12 It is also difficult to supervise employees in this layout. One interviewee argued that the buildings suited firms employing 10 workers at most, but not the bigger firms. Interestingly, many of the firms that have moved out of Siteler have formed another cluster, this time in Akyurt (near Ankara airport). One manager spoke of how the firm took the decision to move to Akyurt: ‘We were suffering the constraints associated with the buildings in Siteler and were considering moving out. When one of our competitors moved to the area next to the airport, we thought that it might be a good idea to own land there, and later we constructed a factory.’ Then other firms followed suit, and as a result the germ of a new furniture district emerged, this time composed of larger firms. While these firms have maintained a presence in Siteler, this is often only in the form of a showroom. As a final note in this section, the interviewees pointed out some negative aspects of concentration. For example, being close to one’s competitors can be harmful since it facilitates imitation, supporting an assertion in the literature that agglomeration might not be as beneficial for strong and successful The Furniture Cluster in Ankara 81 firms as it is for the followers (Shaver and Flyer, 2000). In this context, imitation is seen as a negative externality that is magnified in geographic clusters: ‘It is very easy in a district to copy what others do. It is, on the other hand, very difficult to fight against it.’ Thus although, successful firms tend to be secretive about their new products, they are immediately copied by competitors when they are put on the market. Some firms even install a partition between the showroom and the workshop to hide the development of the latest model. Referring to the managers of rival firms, a prominent and successful manager rather dramatically stated that he had no friends in Siteler. When the above is combined with the general lack of original design and the existence of destructive price competition, it is clear that, in the absence of a supportive business environment, the upgrading of a cluster will be difficult. This has important theoretical implications, as do the two other salient features of the Ankara cluster: the dominance of flexibly specialized small and medium-sized enterprises and the difficulty that the cluster firms face in terms of internationalization. A detailed discussion of these observations will be left until Chapter 8, although several related aspects will be touched upon when we analyse other clusters in the following chapters. It suffices here to state that our analysis of the Ankara cluster provides evidence against theories that associate the presence of flexibly specialized enterprises with international competitiveness (see Chapter 1), given that the cluster’s position in international markets is weak. The evidence provided by the analysis of this cluster also invites a discussion as regards the exact role played by competitive forces and accumulated know-how in the development of a cluster. With regard to the former, we need to identify the circumstances that lead to destructive price competition versus those which lead to the improvement of competitive advantage in a cluster environment. Regarding the latter, we need to clarify the conditions for and the process of knowledge accumulation in respect of internationalization. When the analysis of this cluster is combined with those in the following chapters, which will bring new dimensions to the issues raised in this chapter and open up some novel areas of discussion, we shall be better equipped to offer an understanding of the link between clustering and competitive advantage. However one thing is very clear even at this initial stage: some clusters are not internationally competitive, but we do not know about them because they are rarely discussed in the literature, as noted by Amin (1994). Concluding remarks and future prospects The furniture cluster in Ankara presents a rather bleak picture with regard to international competitiveness. The advantages enjoyed by the cluster – such as low labour costs, its central location and its links with the construction industry, paving the way for direct and indirect furniture exports – do not 82 Clusters and Competitive Advantage compensate for its drawbacks, which include difficulties with financing and acquisition of the main input (wood), unfair competition stemming from the presence of firms in the ‘grey economy’ and, most importantly, problems with strategy, especially in respect of design and export marketing mechanisms. Recently, however, Turkey’s internationalization measures have facilitated the entry of inputs and consumer products, and this has been instrumental in Turkish manufacturers paying increased attention to quality and adopting a more customer-oriented approach (SPO, 1995). Moreover large Turkish industrial groups have entered the furniture industry, 13 a move that is likely to bring about a structural transformation of the industry (Er, 1994). Various forms of partnership with foreign companies have also been established, which might prove helpful in overcoming the weak product development capability of the cluster firms. Such developments will serve not only to bring new capital and technology to the sector, but also to intensify competition, forcing firms to capitalize more on their advantages. Finally, furniture firms have paid more attention to export opportunities since the February 2001 financial crisis, and have extended their connections in inter- national markets beyond those they have via construction projects. In light of the analysis in this chapter, we can conclude that destructive price competition and the dominance of reproduction furniture rather than original design are the major barriers to the further development of the cluster. The countervailing forces include increased competition, both inter- national and domestic, and technology transfer via foreign partnerships. The increase in exports is also noteworthy. Cluster firms are showing an interest in expansion, especially through investment in technology and marketing. There are also some early signs that the industry has started to accumulate the necessary knowledge for new product development (ibid.). In fact some of the managers interviewed were quite optimistic about the future of the sector: ‘There are lots of things to do, and we know that there is a potential. All we need is to professionalize our design, production and marketing.’ Hence there is clearly an awareness of the importance of design, and it has been argued that independent design firms would be beneficial to the industry (Erzurumluoglu, 1991) as they could serve firms that appreciate the importance of design but cannot afford to employ full-time designers. 14 As a final point, being a part of a global chain via subcontracting relations has become an increasingly popular way of organizing production in the furniture industry worldwide. It remains to be seen whether Ankara’s furniture producers will become part of this global chain (either as subcontractors or subcontracting firms), and if they do, whether this will enable them to improve their competitive advantages. This chapter has shown that a potential exists but that considerable effort will be needed to mobilize that potential, the outcome of which will determine the future of the cluster and define its position as a local centre of global furniture production. Given that there The Furniture Cluster in Ankara 83 are successful examples of transformation (see for instance Parkin, 1999), the challenge is to identify the attributes of the local business environment that will provide the means to realize such a transformation. These are matters that can only be properly addressed after conducting a thorough analysis of the experiences of more successful clusters. The next chapter analyses one of these: the towel and bathrobe cluster in Denizli. 84 5 The Towel and Bathrobe Cluster in Denizli ‘The secret of success lies in courage’ (a businessman from Babadag) Textile production starts with the main inputs – natural or man-made fibres, dyes and chemicals – and involves two major operations, namely yarn prep- aration and fabric weaving. Although there are firms of all sizes operating at the various stages of production, larger firms have become increasingly dominant as the industry has become more and more capital-intensive. More than half of the output of the industry is used by clothing manufacturers. The rest goes to the manufacturers of household goods (for example bed- clothes) and industrial goods (for example vehicle seat upholstery). Compared with the textile industry, the clothing industry is more labour-intensive and the technology used is less sophisticated. Distributors have become increasingly important in this sector due to the dominance of retail activities by large firms, a phenomenon that has affected the organization and geography of clothing manufacture (Dicken, 1998) since the Industrial Revolution. First Britain and then other developed countries such as Germany and France moved into the mass production of textiles, often in localized clusters. Later on the industry grew rapidly in developing countries and either stagnated or declined in developed ones. Despite this trend, however, several developed countries (including Italy, France, Germany and Britain) continue to be amongst the leading exporters of textiles and clothing. In the case of towels and bathrobes, 1 Turkey is amongst the leading exporters in this product group, along with China, Pakistan, Germany, Italy and India. During the period 1996–2000 Turkey was one of the top three exporters, accounting for around 10–20 per cent of total world exports of these products. The main destinations are the United States and the EU countries, especially Germany, Britain, France, the Netherlands, Italy and Belgium. Imports of towels and bathrobes into Turkey, on the other hand, have been negligible (ITC, 2002). The leading ‘textile cities’ in Turkey have traditionally been Istanbul, Adana, Bursa and Izmir, but in the post-liberalization era they have been The Towel and Bathrobe Cluster in Denizli 85 challenged by producers in the provinces of Thrace, Gaziantep and Denizli. The leading centres of towel and bathrobe production are the cities of Denizli and Bursa, with a higher concentration of employment in Denizli 2 which accounts for more than 50 per cent of the country’s total production of towels and bathrobes. The Denizli cluster is highly export-oriented, and more than 60 per cent of its products are sold either directly or indirectly to international markets (Temel et al., 2002). The Denizli Chamber of Commerce values the city’s textile/clothing exports at US$1 billion per year, or about 10 per cent of the total value of textile exports from Turkey (TBMM, 2001a). More than 60 per cent of these exports are towels and bathrobes (Akaydin and Ay, 1998). Denizli industrialists are very proud of their towels, which are used at Wimbledon and in five-star hotels throughout the world. Strikingly, over 40 per cent of Germany’s imports of towels and bathrobes come from Turkey (ITC, 2002), most of them from Denizli. Terms such as ‘the shining star of Turkey’, ‘the Anatolian tiger’ and ‘the Denizli miracle’ are frequently used by researchers and policy makers to describe the city’s impressive performance in international markets. While much has been written about Denizli’s success in this product area, the strategic management aspect of this has been largely ignored. This chapter will take a detailed look at the sources of competitive advantage of the Denizli cluster and the resilience it exhibited in the face of recent challenges, including the economic crises of the late 1990s and early 2000s and competition from other locations. The chapter will also discuss the underlying reasons for and the associated costs and benefits of clustering in this particular case. The analysis will enable us to identify key issues in the link between clustering and competitiveness, which will in turn make it possible to consider the competitiveness of clusters more generally. Origins and historical developments The beginnings of the cluster can be traced back to antiquity. Textiles that are estimated to be 2000 years old have been found in the region, ranking amongst the oldest found anywhere in the world. These early textiles were made of wool, suggesting the practice of animal husbandry. With the devel- opment of agricultural activities in general and the cultivation of cotton in particular, there was a shift to cloth made of cotton (Karaalp and Batmaz, 1998). Denizli’s location in the Menderes Valley, the historic gateway between the Aegean Sea and Eastern Anatolia, was very instrumental in the high level of development attained by this region in these early times (TC Denizli Valiligi, 1998). Historians claim that textiles took up the largest space in the historical bazaar of Denizli, and each of the subsectors of the industry (such as fabric, clothing and dyes) concentrated in certain parts of the bazaar (Gökçe, 2000). 86 Clusters and Competitive Advantage Denizli’s brightest historical period was the Roman era, during which its already strong position in the production of textiles was enhanced. In fact ‘trimita’, a type of fabric produced in the region, was so famous that the city was called ‘Trimita’ by some (TC Denizli Valiligi, 1998). There is also evidence that some of the material used for Caesar’s clothing was imported from Denizli (Sözkesen, 1998). There was a relative decline in the region’s economic pos- ition during the Byzantine era, mainly because the centre of commercial activity shifted from the Aegean and Mediterranean to Constantinople (Istanbul) and its environs. Nevertheless textiles continued to be amongst the leading items produced in the region (TC Denizli Valiligi, 1998). It is also known that the existence of various types of plant and water in and around Hierapolis (Mutluer, 1995) laid the foundations for the development of a closely related industry: dye production (Gökçe, 2000). During the early Ottoman period the key location of the city, then known as Ladik, guaranteed a vibrant commercial life. The careful processing of high-quality cotton resulted in textiles of superior quality that were known for their durability as well as their beauty. Ottoman historians report that a certain type of cotton fabric produced in Denizli and decorated with golden yarn was unmatched anywhere in the world in terms of beauty and quality. Cotton fabrics produced in the region were preferred by the Ottoman aristo- cracy and were popular in Istanbul’s palaces (Mutluer, 1995). In fact Denizli fabrics and clothing were so unique and valuable that they were given as presents to Sultans and other high-ranking people. It is also known that fabrics produced in Denizli were exported to various Mediterranean countries during this period (Gökçe, 2000). In the fifteenth century, when new routes to the East were discovered, the region lost much of its importance. Moreover the capital of the Ottoman Empire shifted from Bursa to Edirne and then to Istanbul, which favoured the development of the regions of Marmara, Thrace and Western Black Sea. In addition the restrictions imposed on foreign merchants damaged inter- national trade and caused a relative loss of position for some key ports in the Aegean, including Izmir, the negative consequences of which were transferred to nearby cities such as Denizli (TC Denizli Valiligi, 1998). Nevertheless, as it was located in a region that produced one of the highest-quality cottons in the world, Denizli continued to be widely known as a leading centre of textile production. Like many other areas of the empire, Denizli underwent an economic downturn in the late Ottoman era (Karaalp and Batmaz, 1998). This is mainly attributed to the Industrial Revolution in the west, which, coupled with the extremely liberal trade policy followed by the empire at the time, seriously damaged the already underdeveloped indigenous industry. One direct effect of this on Denizli was that cotton yarn and fabrics began to be imported, the first large-scale imports of textiles taking place in the 1870s. As a result, the production of inputs such as silk, raw cotton, wool and dyes gained The Towel and Bathrobe Cluster in Denizli 87 importance in the region’s economy as they were in great demand abroad. Towards the end of the century, another noteworthy event for the Denizli economy was the construction of the the Izmir–Aydin railway, whose arrival in the region triggered a revival of economic and commercial activities. With the outbreak of World War I which was followed by the Turkish War of Independence the few remains of Ottoman industry virtually disap- peared. Although there was a slight revival after the wars, following the return of some master craftsmen, the extent of destruction, especially in terms of human life, had such an effect on Denizli that in the early years of the Turkish Republic economic progress was minimal (TC Denizli Valiligi, 1998). In 1927 there were 1581 enterprises in Denizli, 27 per cent of which were textile-related and 98 per cent of which had fewer than 10 workers (Mutluer, 1995). Family members, particularly females, participated in the production process while the male members concentrated on obtaining inputs and marketing the products, mostly via tradesmen (Erendil, 1998). A noteworthy event in the mid 1930s was the emergence of cooperatives in Denizli, which laid the foundation for industrialization by enabling indi- viduals and firms to join forces to acquire cotton yarn at favourable terms, and thus reduce their dependence on yarn merchants (Mutluer, 1995; Karaalp and Batmaz, 1998). There was quite an increase in the number of small textile cooperatives in the 1940s, mainly because a state enterprise, the Sümerbank yarn Factory, was given the task of supplying cotton yarn to manufacturers via the cooperatives (Mutluer, 1995). 3 In the 1960s the use of electricity became widespread, triggering the adop- tion of electrical looms. The modernization impetus was reinforced when Denizli was included amongst the provinces that were given priority status in terms of development in the early 1970s, which meant an increase in public investment. 4 The Denizli Dyeing and Printing Factory was founded in 1974 and provided high-quality cotton yarn treatment, dyeing and printing services to producers. Another novel development was that the remittances sent by the Turkish workers in Germany fed the private capital accumulation in Denizli that had been initiated by the cooperatives. 5 The 1970s also witnessed a rapid increase in subcontracting relations amongst the cluster firms (Erendil, 1998). An important upturn in the Denizli economy took place in the 1980s, when the textile industry engaged in a significant export drive, making good use of the liberal government policies of the period. Meanwhile importing the required machinery became much easier, further facilitating the transition from home/workshop production to larger, sometimes factory-based production (TC Denizli Valiligi, 1998). Following an initial learning period, a real increase in exports took place in the second half of the 1980s and throughout the 1990s. Bigger firms and sectoral foreign trade corporations were usually the first vehicles by which small and medium-sized enterprises in Denizli began to export. 6 Denizli towels and bathrobes were in great demand in 88 Clusters and Competitive Advantage international markets, which prompted firms to increase their production of these product categories. Other items such as bedclothes and babies’ clothing were also exported, but their share of total exports remained well below that of towels and bathrobes. An examination of the cluster firms’ date of establishment highlights the importance of the post-1980 period in Denizli’s development in that around 80 per cent of the enterprises were established from the mid-1980s onwards, more than half of these after 1990 (Temel et al., 2002). As Sengün (1998) argues, it was this process of interna- tionalization that created the economically vibrant environment that exists in Denizli today. In summary, the revival of the ancient tradition of textile production began in the early 1970s, developed in the 1980s and expanded both nationally and internationally in the 1990s. This section closes with a summary of the current general economic struc- ture of Denizli in order to put the towel and bathrobe cluster into that context. According to a survey by the State Planning Organization, there are around 6500 industrial establishments in Denizli, more than 90 per cent of which are small firms with up to nine workers. The total number of workers is almost 50000, 65 per cent of whom work for the larger firms (ibid.). Table 5.1 provides a breakdown of employment in Denizli by economic activity, in which the dominance of textile, apparel and related businesses is clear. Other sectors with a considerable presence are tourism-related activities, metal-working and machinery production, cutlery, leather footwear, earth- enware products, products of marble and glass, food and beverages (especially flour, non-alcoholic beverages, roasted chickpeas, pasta, olives, wine, spices, milk and animal feed) and furniture. It should also be noted that the variety of industrial activities has increased in recent years (Sarica, 1997). In terms of export success, the textile/apparel sector is followed by the metal-working and food and beverage sectors, in that order. The leading item with regard to imports is machinery, followed by a range of textile-related products. Imports are mainly from Germany, Italy, Japan and Switzerland. Sources of international competitive advantage Basic factors of production The principal items in the total cost of a typical textile product produced by the cluster firms are raw materials (especially cotton), labour and energy. Around 30 per cent of the major inputs are imported from abroad and another 30 per cent from nearby provinces. The remaining 40 per cent, are procured outside the regional economy (Temel et al., 2002). 7 Although Turkey is amongst the world’s top ten producers of cotton and the best quality cotton in Turkey is grown in the Aegean region, where Denizli is located, Denizli has to import around 30 per cent of its cotton yarn requirement as cotton production falls short of the domestic demand. However the local availability of high-quality 89 Table 5.1 Employment in Denizli, by economic activity 1 ISIC Sector Location quotient Denizli’s share of national employmen t in the sectors (%) 1723 Manufacture of cordage, rope, twine and netting 28.3713 39.08 1711 Preparation and spinning of textile fibres; weaving of textiles 12.2743 16.91 1721 Manufacture of textile articles, except apparel 7.6795 10.58 1531 Manufacture of grain mill products 5.7509 7.92 1421 Mining of minerals for chemicals and fertilizers 5.5022 7.58 2923 Manufacture of machinery for metallurgy 5.3998 7.44 1429 Other mining and quarrying n.e.c. 4.9386 6.80 1552 Wine production 4.8805 6.72 1712 Finishing of textiles 4.8021 6.61 1554 Manufacture of soft drinks; production of mineral water 4.0696 5.61 3312 Manufacture of instruments for measuring, testing etc. 3.4570 4.76 1911 Tanning and dressing of leather 3.2278 4.45 3591 Manufacture of motorcycles 2.9999 4.13 2926 Manufacture of machinery for textile and leather production 2.7944 3.85 1729 Manufacture of other textiles n.e.c. 2.5550 3.52 2925 Manufacture of machinery for food, beverages and tobacco 2.3785 3.28 1320 Mining of non-ferrous metal ores 2.2218 3.06 2411 Manufacture of basic chemicals, except fertilizers 2.2044 3.04 2893 Manufacture of cutlery, hand tools and general hardware 2.1489 2.96 3420 Manufacture of bodies for motor vehicles (coachwork) 2.1143 2.91 1410 Quarrying of stone, sand and clay 2.1025 2.90 9214 Dramatic arts, music and other arts activities 2.1006 2.89 1820 Dressing and dyeing of fur; manufacture of fur articles 2.0546 2.83 1920 Manufacture of footwear 1.8616 2.56 7020 Real estate activities on a fee or contractual basis 1.8562 2.56 2429 Manufacture of basic chemicals, except fertilizers etc. 1.8278 2.52 4510 Site preparation 1.7129 2.36 3692 Manufacture of musical instruments 1.6883 2.33 6220 Non-scheduled air transport 1.6883 2.33 2022 Manufacture of builders’ carpentry and joinery 1.6286 2.24 3000 Manufacture of office, accounting and computing machinery 1.5668 2.16 5040 Sale, maintenance and repair of motorcycles and related parts 1.5423 2.12 [...]...90 Clusters and Competitive Advantage Table 5.1 ISIC (Continued) Sector 1543 Manufacture of cocoa, chocolate and sugar confectionery 7414 Business and management consultancy activities 1513 Processing and preserving of fruit and vegetables 6302 Storage and warehousing 2710 Manufacture of basic iron and steel 5020 Maintenance and repair of motor vehicles 2811 Manufacture... of financing and energy, are other problems that are largely seen as government-induced Denizli businessmen are rather proud of their heritage of independence and expect little more from the government than the removal of obstacles: ‘All we need are inputs and energy at competitive prices and proper financing mechanisms This will enable us to compete on the same terms 100 Clusters and Competitive Advantage... quality and customer satisfaction It makes us faster and dynamic I am the ownermanager of the company and have 30 years’ experience in this sector The firm and I are now ready to deliver the accumulated experience and created values to the second generation, to my sons.’ Another manager pointed out that family members are dedicated and emotionally tied to the business, which increases their motivation and. .. product quality and control, product variety, new production technologies from other firms (domestic and foreign) and new product design An interesting example was provided by one of the interviewees, who stated that cluster firms had worked hard to develop a towel that was both soft and absorbent, and had invented a machine that fulfilled this need Relevant publications and catalogues, domestic and international... sectors/institutions that are currently developing in Denizli The competitive ones are shaded 97 98 Clusters and Competitive Advantage Table 5.2 Denizli exports of towels, bathrobes and closely-related items, 2002 Export value (thousands of US $) Towels Bathrobes Bedclothes Women’s outerwear Cotton woven fabric Men’s outerwear Nightshirts and pyjamas Men’s underwear Cotton yarn Women’s underwear Cotton... Wholesale of other intermediate products, waste and scrap 7421 Architectural and engineering activities and consultancy 2921 Manufacture of agricultural and forestry machinery 4530 Building installation 7494 Photographic activities 2696 Cutting, shaping and finishing of stone 5260 Repair of personal and household goods 5231 Retail sale of pharmaceutical and medical goods etc 5219 Other retail sale in... Yarn factories, on the other hand, use processed cotton not only from Denizli and its environs but also from Isparta, Adana, Antalya, Gaziantep, Mugla and Aydin Cotton yarn is also purchased from the provinces of Gaziantep, Adana, Antalya, Urfa, Hatay, Bursa and Kahramanmaras, and from abroad, particularly from Pakistan, Sri Lanka and Sudan The fabrics used to produce towels and bathrobes come mainly from... associated institutions Table 5.2 provides data on exports of towels, bathrobes and other textile products that are competitive in international markets Paralleling the development of the towel and bathrobe sector, a demand for high-quality inputs, dyes, machinery, packaging and other services emerged in Denizli Between 1965 and the late 1990s the number of factories producing dyes for the industry, for... production, then, Denizli enjoys advantages in terms of raw materials and labour costs vis-à-vis developed countries but not compared with some other developing countries The principal disadvantages are the lack of qualified human resources, the cost and shortage of energy, the cost of capital and the poor infrastructure 92 Clusters and Competitive Advantage Pressures to upgrade: firms’ strategies As noted... many other sectors, and it was argued by the interviewees that the large rise in tourism in the 1980s contributed positively to the development of the towel and bathrobe cluster in general and the process of internationalization in particular Overall, it can be argued that most of the industries that are related to and support the towel and bathrobe industry are internationally competitive in the textile . products 5. 750 9 7.92 1421 Mining of minerals for chemicals and fertilizers 5. 5022 7 .58 2923 Manufacture of machinery for metallurgy 5. 3998 7.44 1429 Other mining and quarrying n.e.c. 4.9386 6.80 155 2. sectors (%) 154 3 Manufacture of cocoa, chocolate and sugar confectionery 1 .52 57 2.10 7414 Business and management consultancy activities 1 .50 67 2.08 151 3 Processing and preserving of fruit and vegetables. passenger land transport 1.1082 1 .53 51 49 Wholesale of other intermediate products, waste and scrap 1.1 053 1 .52 7421 Architectural and engineering activities and consultancy 1.0906 1 .50 2921