Century of Producing Turkey...

 

One of the most prominent indicators of the development and independence of countries in production is the production capacity of the machines that determine the production capability. Our success in every field from agriculture to defence industry, from textile to automotive will become more efficient with our ability to produce production tools. The Machinery Sector has entered the Turkish Century by continuously increasing its investments for the last 3.5 years, increasing its exports and developing. With the target of Production-Export-Employment in the New Century, over 54 thousand entrepreneurs with over 400 thousand employment will carry our Turkey much further than the point it has reached.

 

The machinery sector, which showed an 11% increase in exports in 2022 compared to the previous year, has achieved an increase of more than 70% in its exports in the last 5 years despite all the crises in our nearby geography and the pandemic process experienced globally. Exporting 25 billion dollars in 2022, Turkey's machinery manufacturers exported 21 billion dollars in the first three quarters of 2023, and we expect it to close the year 2023 with an export figure of over 27 billion dollars. In 2022, the machinery sector, which increased labour productivity by 7.3%, achieved a 7% higher productivity increase than the general manufacturing sector. Our sector increased its production value by 103.6% in 2022 compared to the previous year and increased it to 730 billion TL with its sub-sector groups. The value added increased by 110% compared to the previous year and increased from 92 billion TL to 195 billion. In addition to all these, our machinery sector, which does not ignore the technological developments in the world, decreased the amount of exports by 6% and increased its income per kg by more than 18% and realised the dollar / kg value around 7.4 USD. When we evaluate it on the basis of the countries to which it exports, the dollar / kg value of our exports to Germany and Russia, where we export the most, was 10 USD and 12.5 USD to America. It should not be overlooked that the investments made in R&D and P&D activities in our sector have a significant share in all these developments. Compared to other sectors, the highest number of R&D centres is in the Machinery Sector, and our sector ranks second in the ranking of qualified R&D personnel by continuing its upward trend. According to the number of entrepreneurs benefiting from the Technological Product Investment Support Programme in order to upgrade the technologies of the machines we produce and to produce faster and more efficient machines, the machinery sector is leading with 64 companies. 

 

In addition, the tight monetary policy that started after the general elections in 2023, high financing costs, inflation in inputs and political developments in our region led to a period of difficulties for our machinery manufacturers working with limited capital. It is predicted that the tightening economic policies followed will start to reflect positively on the markets after the second half of 2024. This period will be an opportunity for our machinery manufacturers to adapt to international developments. Green transformation for the Borderline Carbon application, which is based on climate change, and digital transformation applications to increase energy and labour productivity will strengthen the hand of our machinery manufacturers in the coming period during this stagnant period. In addition, the supports provided by the Ministry of Industry and Technology within the scope of R&D, P&D and National Technology Move, and the New Generation Export Supports of the Ministry of Trade are also a lifeline for our machinery manufacturers to adapt to transformation. Our machinery manufacturers are subject to positive discrimination in terms of incentives, and the fact that they benefit from the incentives of the upper region in the regions of our country that are open to investment reflects positively on the sector in terms of motivation.

 

With all these developments, in addition to the individual efforts of our entrepreneurs to increase the share of our country in world trade, the public, non-governmental organisations and universities also have responsibilities.  If all components of the quadruple trivet work in a coordinated manner, there will be no obstacle to reach the targets we set.

 

Nearly 70% of Turkey's machinery manufacturers work with a workforce of 1 to 9 people. While our average workforce is 14 people, the average workforce of the German Machinery Industry is 43 people. Therefore, it is very important to increase the efficiency of our entrepreneurial companies, to complete the process of adaptation to digital transformation and green transformation by targeting economies of scale. In addition, nearly 90% of our companies in Turkey are family-owned companies, and completing the institutionalisation process to increase the sustainability of our companies will increase our chances of competition in the international arena.

 

Non-governmental organisations should be positioned between entrepreneurs and the public, develop scientific, directional and applicable policies in line with the needs of our entrepreneurs and present them to the legislators. Civil society organisations can evaluate and realise an issue from different perspectives. Civil society organisations will facilitate the work of legislators in a sense by ensuring that an issue reaches and is discussed by all segments due to their ability to form public opinion.

 

Universities are institutions where science and technology are developed for the benefit of all humanity and the quality of society is increased. In addition to the training of qualified workforce according to the needs and demands of our sector, they are places of knowledge that prioritise people in the light of our ancient civilisation values according to the needs of society. The fact that our academicians implement the scientific development of the sector in practice as well as in theory will ensure the commercialisation of knowledge and our sector will have the ability to produce more value-added and high technology. Therefore, the easiest way to develop and produce more value-added and technology-based machines is to strengthen the university pillar of the quadruple trivet. We must move our initiatives in partnership with universities and our universities in partnership with our entrepreneurs. 

 

The most important pillar of the pillar is the Public pillar, which has the organisational capability to ensure the coordinated work of Entrepreneurs, Universities and Non-Governmental Organisations and to mobilise all institutions. First of all, improving the investment environment will accelerate the investments of our sector, which have been increasing for three and a half years. Unfortunately, international competition is increasing day by day and new players are entering the field. While our sector endeavours to compete with China and Taiwan today, new competitors from Asia will be included in the next 5 years. In order to prevent this, we need to make our preparations today in every field, improve the investment environment, organise the training of qualified labour force, increase the number of financial instruments, offer our resources as qualified and measurable supports and make a benefit analysis. For our entrepreneurs, it would not be wrong to say that the protectionist import regime does not reflect positively on domestic competition due to production and financing costs.

 

Turkey's Machinists, which builds factories and produces factories, will continue to carry out projects in the service of humanity with the awareness of social responsibility that history has imposed on our nation, which is always on the side of the state and the nation, striving for our country to reach the level of contemporary civilisations.

 

İsmail SOMALI