COMPANY NEWS: TURKISH MACHINERY The development of the Turkish mechanical engineering industry

Author / Editor: Silvia Bartsch / Franziska Breunig

As already pointed out, mechanical engineering is one of Turkey's most dynamic branches of industry and the next few years are anticipating and quality and export drive as part of the economic plan.

Foreign trade in the field of Turkish mechanical engineering (trillion $)
Foreign trade in the field of Turkish mechanical engineering (trillion $)
(Bild: Turkstat-turkish Statistical Institute)

The Turkish mechanical engineering industry in figures - the sector of the Turkish economy that is experiencing constant growth

Production in the Turkish mechanical engineering industry has more than doubled over the last 10 years.

The Turkish mechanical engineering industry has increased its share in both the Turkish economy overall, as well as exports. The share in the mechanical engineering sector in total exports for Turkey is 9.3%, meaning it is the second strongest area. Turkey exports to more than 200 countries (including the free trade zone).

With an average annual growth rate of 15% over the last 5 years, the Turkish mechanical engineering industry has gone on to have the third largest rate of export growth in the world. Over the last 12 years, exports in the mechanical engineering sectors have increased by a factor of seven.

Around 60% of Turkish exports go to Europe and the USA.

Exports from the Turkish mechanical engineering industry, which, in 2005, were worth 5.2 billion dollars, were able to achieve a value of 13.4 billion dollars with the help of an average annual growth rate of 16% by 2015. The export growth rate in the mechanical engineering sector is subsequently higher the Turkey's total exports (8%).

Imports in mechanical engineering reached a value of 26.4 billion dollars in 2015 following an average annual growth rate of 10%.

In 2015, the mechanical engineering industry's share in total Turkish exports was at 9.3% and the share of imports had increased to 12.8%.

In the last ten years, the Turkish mechanical engineering industry has increased its exports two and a half fold and subsequently demonstrated its global competitiveness. This process began with the modernisation of the companies and continued with increased quality awareness and streamlined production processes. Despite this, people in Turkey are aware that requirements have now become higher and more demanding than ever before, in an ultra-modern and technological industry.

Gallery

Aims of the industry

- Increase in exports, diversifying the groups of products in the sub-industries, global market leader for selected groups of products

- Increasing added value for production and exports

- Higher investments in technologies and new partnerships

- Highly qualified staff

The Turkish mechanical engineering industry is challenging itself in the area of industry 4.0 and digitalisation

Furthermore, current topics and questions on industry 4.0, automatization and digitalisation are becoming much more significant and interesting to Turkish companies. The companies themselves, as well as economic associations, educational institutions and the government are underlining the importance industry 4.0 has for the future. Many Turkish economic representatives see industry 4.0 as being a one-time chance to increase productivity and strengthen international competitiveness.

The government also sees itself as being responsible and has been developing relevant support programs for a long time. As the figures from the ministry for industry show, the state subsidies for technology development projects that were again expanded in 2016 are now beginning to bear fruit: Since the start of 2017, the number of companies with state recognised research centres, thus making them eligible, has been increasing. Another 135 companies were added in the first four months alone. This brought the figure to a total of 470. For comparison: Between 2008 and 2016, only 20 new companies were counted amongst those with state recognised research centres, according to government figures. The ministry for industry expects a further increase in private R&D centres to 1,000 over the coming year.

Particularly for German companies, numerous opportunities for cooperation are likely to open up in the area of the new technologies - Turkish companies are extremely eager willingness to cooperate.

The German companies already represented in the country, such as Siemens, Bosch, Bosch-Rexroth and Festo, are already working closely with local partners.

For example, Festo, the German automation specialist is in close communication with Turkish universities and other institutions. This includes, among other things, education measures. Festo's "Didactic" department, offers 56 different seminars on pneumatics, electronics, mechatronics and process automation as the basis for the future digital environment.

International, cooperative collaboration as an opportunity to expand competitiveness

The goals described here for the mechanical engineering industry should, just as in the past, be jointly pursued with international, especially European and German partners and friends, in which both cooperation as well as the exchange of know-how are further advanced and enhanced.

The Turkish mechanical engineering sector, as supply market, also offers German companies an international location and far-reaching potential for international investments. As an export union, Turkish Machinery currently represents around 8,000 Turkish associated companies in the sector of mechanical engineering and subsequently cover the areas of machine production, the supply industry, construction contracts as well as additional suppliers for interim and final customers

To promote the development of opportunities, Turkish Machinery places particular value on investing in German-Turkish collaboration, generating cooperation, promoting the transfer of technology as well as on joint projects in the field of research and development as part of our work with Germany. To this end, the organisation is working intensively on expanding relationships with German companies, associations, organisations and societies from the area of research.

For strengthening or expanding this potential, the establishment and maintenance of relations in the industry is of particular importance. The platform of industrial trade fairs in Germany is being used intensively for this purpose. To this end, Turkish Machinery will be represented with exhibition stands at EMO in Hanover, Interlift in Augsburg, Blechexpo in Stuttgart and Agritechnica in Hanover.

Gallery

(ID:44848536)