A GENERAL OVERVIEW OF TURKISH MACHINERY MANUFACTURING INDUSTRY
Tuesday, January 29th, 2008Machinery industry, which is crucial to the industrialization of all countries in the world, has been the driving force behind Turkey’s industrialization process due to its rapid growth based on high value added and its contributions to other sectors. As a result of this interaction, the machinery industry has been more successful than other branches of the manufacturing industry and its export has constantly been above the average of the export increase for Turkish industries overall.
The overwhelming majority of machinery manufacturers in Turkey are small or medium enterprises like many other countries. This makes possible a rapid and flexible adaptation to changing economic conditions and technological developments.
The Turkish machinery manufacturing industry produces every kind of machinery and accessories at high quality and competitive prices. The average domestic input ratio in the production stage is around 90%. The low cost of engineering services with respect to other countries increases the competitiveness of Turkish Manufacturers, especially for tailor made and turnkey plant production.
Young, dynamic and well-trained labour force combined with a professional concept of work places a value on production of the desired quantity and quality. Turkish machinery manufacturers are preferred in international markets with delivery on time and at competitive prices, also with desired quality.
The product range of the Turkish machinery industry consists of boilers and burners, power turbines, pumps and compressors, valves, air conditioning units, refrigerators, industrial furnaces, rolling mill, foundry machines and moulds, food processing machines, agricultural & woodworking machinery, material handling & lifting machines, construction & mining machinery, paper & printing machines, washing, drying and dry cleaning machines, textile machinery, leather processing machinery, rubber & plastic processing machinery, metal working machinery & machine tools, engines & spare parts, office machinery, bearings, arms & ammunition, packaging machines.
The output value of Turkish machinery manufacturing industry, which has achieved a rapid growth during recent years, has reached to approximately $ 18 billions and is expected to increase by 12 to 15% on average in the next five years.
In Turkish machinery industry, increases in production are directed to the export. The machinery and accessories sector accounts for 7.1% of Turkey’s total exports. The value of Turkish machinery exports was 6,9 billion $ in 2006 and account for 0,4% of the world machinery trade. Turkey took place 18th in the world by means of export. Turkey?s machinery export value, which was 807 million $ in the year 1996 grew approximately eight times and reached to 6,9 billion $ and imports of 18,7 billion U.S. dollars in 2006.
Attaching great importance to research and development, the Turkish Machinery Manufacturing Industry has sharpened its competitive edge in international markets due to its advanced engineering skills and low costs. Consequently, Turkish Machinery Industry has achieved to export around 200 countries.
When examined in terms of country basis Germany, Italy, UK, France and United States of America are the major countries in Turkish Machinery export. Russian Federation, Iraq, Romania, Poland, Bulgaria and Iran are the other important export markets respectively. The two important trade partners of Turkey in terms of exports of the machine manufacturing industry are the European Union and the United States of America. The export value of the sector regarding Germany, which is the leader position in the export of Turkish machinery industry with a 17% share, has increased three fold in the last five years.
The mission of Turkish machinery exporters is flexible production at competitive prices using high technology and its vision is to reach world markets in a fast and effective way. When the whole of the machinery sector (HS code: “84″) is considered, total export is expected to reach 9 billion $ in the year 2007 and 15 billion $ in the year 2010. Over the long term main objectives of the sector are increasing the quality and diversity in production and producing technology and knowledge based products. It is said that both machinery sector and Turkey?s total export potential will be reflected entirely by reaching these objectives.
