The machinery parts manufacturing sector, an important part of Turkey’s industrial heartland, has been experiencing a journey full of ups and downs in recent years. On the one hand, increasing investments and rising exports are promising for the sector, but on the other hand, rising raw material prices and exchange rate fluctuations continue to challenge industry players. In this newsletter article, we will take a comprehensive look at the current state of the industry, the challenges it faces, and our predictions for the future.
Increased Investment and Exports
- 2023 was a year of increased investments for the machinery parts manufacturing sector. Investments in the sector increased by 10% compared to the previous year, an indication of the sector’s dynamism and confidence in the future.
- It is possible to see the fruits of these investments in export figures. In 2023, the sector broke a record by exporting 20 billion dollars. Demand from the automotive, white goods and energy sectors played an important role in this increase.
Rohstoffpreise und Wechselkursschwankungen
Unfortunately, in addition to the increase in investments and exports, the sector also faces some challenges. The increase in raw material prices and exchange rate fluctuations are among the most important factors negatively affecting the sector’s profitability.
Small and medium-sized enterprises (SMEs) were particularly affected. Increases in raw material prices increased production costs and reduced the profit margins of companies.
Exchange rate fluctuations also posed a major risk for companies using imported raw materials. Firms tried to find different solutions to protect themselves against exchange rate risk. While some companies tried to increase the use of domestic raw materials, others tried to minimize the risk by making long-term raw material contracts.
Views of Sector Representatives
There are different views on the current state of the sector.
- Mustafa Haymana, President of Turkish Machinery Manufacturers Association (TÜMAD): “The government needs to increase its support for industrialists and take measures against fluctuations in raw material prices. Incentives and support are vital, especially for SMEs to survive in this difficult process.”
- A machine part manufacturer: “Despite the increase in exports, our profitability decreased. We are waiting for raw material prices to fall and the exchange rate to stabilize. This situation negatively affects investments and slows down the development of the sector.”
About the Future of the Industry
Experts predict that the sector will continue to grow in 2024. The sector is expected to grow even stronger with increased investments and encouragement of exports.
However, one of the biggest obstacles for the sector is the stabilization of raw material prices and the exchange rate. The steps to be taken by the government and the solutions to be implemented by the sector are of critical importance.
Importance and Contribution of the Sector
Der Sektor der Herstellung von Maschinenteilen ist ein Sektor, der einen bedeutenden Beitrag zur türkischen Wirtschaft leistet. Der Sektor beschäftigt direkt und indirekt Millionen von Menschen. Darüber hinaus zeigen die Produktionskapazität und die Exportzahlen des Sektors die industrielle Stärke der Türkei.
Folglich hat der Sektor der Herstellung von Maschinenteilen trotz einiger Schwierigkeiten ein hohes Potenzial. Der Sektor kann sich weiter entwickeln und seinen Beitrag zur türkischen Wirtschaft steigern, wenn die Investitionen erhöht, ein stabiles Umfeld gewährleistet und die Anreize für den Sektor verstärkt werden.
