REGIONAL REPORT
Progress in digitalisation will require further investment to upgrade Turkey ’ s technological infrastructure
“ Machinery manufacturing continues to be one of the key growth drivers of the Turkish economy . This sector plays a crucial role in the development of Turkey ’ s greater manufacturing industry due in no small part to its capability to produce intermediate goods and to provide inputs to key sectors such as chemicals , construction , automotive , energy , textiles , agriculture and mining . The machinery manufacturing sector in Turkey is known for being R & D-intensive – Turkey graduates over 35,000 engineers every year in mechanical fields - and for creating high value ,” said Turkey ’ s Investment Office .
The country ’ s particular metalworking machinery strengths include laser-processing machine tools , forging and punching machines ( including presses ). The automotive , white goods , HVAC , aviation and healthcare sectors ( among others ) are well represented in Turkey .
In 2019 , Turkey ’ s metalworking and machine tool market became the eleventh largest market in the world . It has the largest industrial base in Central and Eastern Europe . Exports reached US $ 841 million in 2019 , with industry diversifying its export markets to Russia ; Germany ; USA ; Poland ; France and Canada .
Manufacturing in focus
Over the next decade , Turkey is expected to invest up to US $ 1.5- billion , annually , to integrate Industry 4.0 solutions ( referring to the fourth industrial revolution and digital transformation across manufacturing industries ) into the manufacturing process . Progress in digitalisation will require further investment to upgrade Turkey ’ s technological infrastructure , including funding for fixed and mobile broadband services as well as fibre optics . Turkey ’ s path towards digitalisation will also require prioritising Science , Technology , Engineering and Math ( STEM ) skills in education .
■ The Turkish machinery sector more than quadrupled its revenues to reach US $ 21 billion and doubled its workforce to hit 244,000 in 2020 .
■ While global exports doubled , Turkey ’ s exports have increased tenfold in the past 19 years and reached US $ 18.5 billion in 2020 .
Turkey ’ s presence at the Blechexpo 2019 sheet metal exhibition in Stuttgart , Germany .
■ Turkey ’ s HVAC sector has a strong industrial base with a US $ 4.7-billion total export value . It also functions as Europe ’ s manufacturing base for panel radiators , boilers and air handling units ( AHUs ).
■ Turkey ’ s market for lifting and handling equipment reached US $ 1.7 billion in 2019 .
According to latest analysis by Oxford Economics , industrial production ( manufacturing , extraction and utilities ) in Turkey is forecast to outpace economic growth in 2022 , increasing by 3.8 % before easing to 0.9 % growth in 2023 .
Turkey ’ s young , sizeable population , dynamic entrepreneurial class and advantageous geographic position ( as a bridge between Europe and Asia ) has made the country an important manufacturing and distribution hub . n
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■ The export / import ratio of the industry has increased from 30 percent to 60 per cent since 2003 , indicating a growing market with less dependency on imports .
■ As Turkey ’ s fourth largest export industry , accounting for a 10 percent share in the country ’ s total exports , machinery products are shipped to more than 200 countries . Around 60 per cent of total machinery product exports are shipped to the USA and EU countries ( mostly to Germany , UK , France and Italy ).
■ Total machinery sector imports surpassed US $ 28 billion in 2020 , endorsing the strong demand from the domestic market .
■ Turkey ’ s agricultural machinery market reached US $ 1.1 billion in 2019 .
■ Turkey ’ s construction machinery market reached US $ 626 million in 2019 . Turkey construction market size was valued at US $ 113.4- billion in 2021 . It is projected to grow at an AAGR of more than 4 % during the period 2023-2026 , although output this year will be affected by the Russian invasion of Ukraine .
EUROBLECH 2022 , HANOVER , GERMANY
25 – 28 Oct . 2022 | Hall 26 , Booth M11 www . soyer . com
www . ismr . net | ISMR July / August 2022 | 41