In last 25 years, metal working machineries and manufacturing technologies played an important role in the growth of Tukrey´s economy depending on fast development of international trade and investments (foreign and local). The industries of metal working such as automotive and household appliances are the main reasons of that development.
The growth of the Turkish machinery sector is backed by SMEs
The machinery industry in Turkey has been growing at a rate of nearly 20 % per year since 1990, and 30 % per year since 2009. The growth of the Turkish machinery sector is backed by highly competitive and adaptable small and medium-sized businesses (SMEs), which form the bulk of the industrial production in the country and account for 50 % of machinery production.
As the drivers of growth in machinery and major contributors to the industrialization of the country, Turkish SMEs distinguish themselves from their peers in other countries by their utilization of the competitive and highly-skilled work force Turkey offers. Domestic inputs accounting for approximately 85 p% of all inputs at the production stage and the combined advantage of the engineering capability required to compete in the international market with reasonable labor costs enable the Turkish machinery industry to offer a range of products and components that are both high-quality and affordable.
The machinery production of Turkey has also started to take up an increasing portion of the country’s exports, and accounted for 14.7 % of total exports to 200 countries with USD 23.3 billion in 2014. Despite robust domestic production of machinery, the imports of machinery with USD 46 billion in 2014 are twice that of exports and 19 % of overall imports, indicating the increasing domestic demand for machinery. Turkey’s machinery industry has been given ambitious export targets for the country’s 100th anniversary in 2023. To reach USD 100 billion of exports with a share of 2.3 % of the global market, the Turkish machinery industry is projected to have a CAGR /compuind annual growth rate)of 17.8 % until 2023. By that time, the sector’s share of Turkey’s exports is expected to be no less than 18 %.