Machinery industry plans to become leader in exports
The machinery manufacturing business will see a significant jump over the next five years, with its eyes set on dethroning the current leader — the automotive industry — the Central Anatolian Machinery and Accessories Exporters’ Union (OAMAİB) Chairman Adnan Dalgakıran said.
Dalgakıran was sharing his opinions on current conditions and developments in the machinery business with the Anatolia news agency. There is no new production of technology in Turkey; instead, Turkish industrialists are importing technology from developed nations, he noted, adding that the machinery industry will soon become the actor undertaking the task of generating technology in the country.
In 2007 the machinery field achieved $9 billion in exports, a 37 percent increase over the previous year. In the same year, machinery imports increased by only 19 percent, “That means we are gradually bridging the gap between the imports and exports,” Dalgakıran commented.
He said the industry has so far made a bright entry into 2008, estimating that this year exports would show a surge of between 20 and 40 percent. But the growth will largely depend on external demand, as contraction in the domestic market will continue, he predicted.
Developed nations count the machinery industry as among their major businesses and use considerable financial resources to support it, Dalgakıran said, adding: “This is exactly what the problem is in Turkey. Turkish industrialists prefer imported machinery, not because of their quality but because of the five to seven years of payment installments foreign machinery producers make available to their customers.” If the support problems are solved, the industry could easily reach $50 billion in annual exports, Dalgakıran believes.
Another problem, he noted, is the fragmented structure of the machinery industry itself. There are too many firms operating in the market, and their sizes are extremely small relative to their competitors in the world, he said. He estimated that there would be a serious wave of consolidation, mergers and acquisitions within the industry since the companies have to reach to a certain size in order to survive the ever-toughening competition. “They will either merge to form larger companies or will transform affiliated industries, or they will wither away from the competition. This is what happened elsewhere before, and the same will be experienced here in Turkey as well,” Dalgakıran noted.
Source:Today’s Zaman