Manufacturing is one of the leading industries in Turkey, and its growth has significantly towards the country’s economy; Turkey was ranked 19th in the global economy in 2021. The manufacturing output of Turkey was $179.23B in 2021, which it has grown by a whopping 30.15% from 2020. In addition, the value added (% of GDP) of the manufacturing industry in Turkey was reported at 21.98 % in 2021. This indicates that the manufacturing industry stands for a place in the GDP of Turkey significantly. If you’re in the manufacturing industry or in Turkey, you must take advantage of this chance to be involved and capture profits from it. Want to know more about the reasons why Turkey became the ideal location for the manufacturing industry? Keep reading!
Evidence that the manufacturing industry in Turkey is growing
The number of employees involved in Turkey’s manufacturing industry rose by 325,000 in December 2020, witnessing an 8.6% increase compared to the previous year, bringing the number of participants to 4.1 million. Moreover, the machinery and equipment investment in Turkey increased by 38.7% in 2020, which implicitly shows that the manufacturing industry in Turkey is expected to continue expanding in the future. According to a survey by the bank, the local manufacturing industry units in Turkey were operating at 77.4% of their capacity in September 2022, up from the August figure of 76.7%. This shows that the manufacturing industry in Turkey is booming, and is indeed an emerging exporting giant.
Turkey’s Manufacturing Exports in 2020
Manufacturing is the most important sector in Turkey, holding 84% of total production. Food products, textiles and apparel, motor vehicles, basic metals, and fabricated metal products, plastic products, chemicals and chemical products, and electrical equipment are the biggest segments that make up the manufacturing sector in Turkey.
Turkey had a total value of $176.53B of total exports in 2020 and, due to that, gained a rank of exportation of 29th in 2020. Manufacturing occupied some of Turkey’s top ten export commodities in 2020, with the number one ranking being vehicles at 12.86% and 22.7 billion in export value. Specifically, Turkey has record-breaking exports of apparel, jewellery, ceramics, furniture, and more. You can explore more of Turkey‘s exports here.
Why choose the manufacturing industry in Turkey?
1. Strategic location
It is undeniable to say that Turkey is located strategically, which is located centrally between Asia and Europe. The region has always been the link between these two large consumer markets. This makes Turkey a prime location for any manufacturing. Due to that, it is an excellent choice to choose Turkey as a hub for manufacturing and exporting. For instance, in 2021, Ford’s share in commercial vehicle production in Turkey was 71%, and Ford’s share in Turkey‘s commercial vehicle exports was 77%. In addition, the Toyota Automotive Industry Turkey, with a successful exportation value of 3.8 billion dollars in 2021, was awarded as “Turkey’s Second Biggest Exporter”.
2. High workforce rate
In 2021, the labour force participation rate for young people was 41.7%, compared to an overall participation rate of 53% in Turkey. This clearly indicates that foreign investors would have a great chance to benefit from flexible employment opportunities and a large pool of experienced labours. In addition, Turkey‘s net enrolment rate in higher education in 2020-2021 was 44.4%. The young generation is educated more thoroughly and has great knowledge of technological advancement. Therefore, a young and well-educated labour pool can be found abundantly in Turkey too. This means that the manufacturing industry in Turkey would provide you with the same level of quality as in other countries. Yet, in Turkey, you do get a slight price advantage.
3. Low operating costs
In Turkey, you will be better off with lower start-up costs, while establishing a business in Europe countries such as the UK or US would cost you a fortune. This makes Turkey an ideal location to start up a business. The reason behind lower operating costs in Turkey is that the cost of living in the country is comparatively lower. Lower operating costs allow your business to trim out the expenses that it would cost you in other countries. This makes goods in Turkey very affordable and you can buy more in the country. For instance, Turkey‘s gross minimum labour cost is about TRY7,603.43 (USD 404.86), while the US set the cost at USD 1160 per month. Therefore, you would be better off developing your business in Turkey as you could reduce the costs and save money in terms of investment, production, and manufacturing industry in Turkey.
4. Turkish Free Zone
The free zone is a special site within the country that is deemed to be outside of the customs territory. There are 18 free zones in Turkey, and a wide variety of business activities can be carried out in the free zone, such as manufacturing, research and development, and general trading. Conducting business in a tax-free zone can exempt you from taxes that you would otherwise pay, such as corporate tax and income tax. As a result, you may seize the opportunity to establish your business in a Turkish free zone, where you can save money by avoiding a slew of taxes. The free zone is even more attractive because any goods entering the zones are exempt from customs duty. Moreover, no property tax needed to be paid for buildings or land in the free zones. Eliminating these costs can help you easily gain more net profit in Turkey. Lastly, the profit or revenue you earn in the free zone can be freely transferred to Turkey or other countries without being taxed, and without the need for any permits.
Turkey is an ideal location for manufacturing it has a strategic location, a high workforce rate, and low operating costs, and businesses get to enjoy tax advantage in specific zones. Most businesses can definitely benefit from its growth especially those in the manufacturing industry. If you are considering starting or expanding your business in the manufacturing industry in Turkey, it’s highly recommended to leverage on import-export data of the industry and you can get them easily through TradeData.Pro. TradeData.Pro provides you with customs data such as the HS Code, importers, and exporters in the manufacturing industry in Turkey. From there, you may gain insight into the potential suppliers and buyers in Turkey and make informed decisions for your business.
Are you looking for reliable import-export data to make strategic business decisions in the automotive industry in Turkey? Look no further than TradeData.Pro, a trusted trade data platform that offers comprehensive market information to help you connect with potential customers, suppliers, and competitors.
With TradeData.Pro, you can access accurate and up-to-date trade records, including company names, addresses, and import-export history, enabling you to identify high-potential leads and suppliers in Turkey. Our platform has helped over 500 companies to date, and we can help you too.
In addition to providing trade data, TradeData.Pro also offers valuable insights into global trade markets, helping you to expand your business and stay ahead of the competition. Don’t miss out on the opportunity to gain a competitive edge in the automotive industry in Turkey. Contact us today to learn more about our services and how we can help you achieve sustainable business growth.
The most trustable and reliable source for Trade Data.
TradeData.Pro is a reliable and trustworthy source of trade data proudly made in Singapore, a country known for its stable political climate and trade-driven economy. Presented by Commodities Intelligence Centre, a government-linked company and a joint venture of Zall Smartcom, SGX, and GeTS, TradeData.Pro has received positive feedback from the market since its launch in 2018 for its extensive coverage, affordability, and fast response. The platform has been awarded the Singapore Quality Class in 2020 and the Stevie Award Gold in 2021.
Traditionally, obtaining critical data to reveal trends, identify market opportunities, track competitors, buyers, and suppliers, and better understand the potential of the supply chain has been a challenge. However, the detailed shipment information that is part of government import and export filing requirements does exist and forms the core of global trade. TradeData.Pro has gathered and packaged this information as business intelligence, which helps companies understand the flow of goods across borders and features the world’s largest searchable trade database. TradeData.Pro reviews, standardizes, and cleans data and delivers it in an intuitive format, making it easier for businesses to access.
Businesses interested in staying updated on Vietnam, the hottest industry lately, can access all relevant information on the TradeData.Pro platform. They can find the exact product they’re interested in by checking out the trade database demo at https://tradedata.pro/asia-trade-data/vietnam-import-export-data/. To learn more about accessing new markets, visit https://tradedata.pro/trade-database-demo/.
Additionally, businesses can check out this article to learn how to use TradeData.Pro to access Global Trade Markets: https://blog.tradedata.pro/say-hello-to-our-new-release-of-tradedata-pro/. To understand how TradeData.Pro works, watch the video below or visit https://www.youtube.com/watch?v=tITfUvjs6Gc.
Business Economy Export Global Import International Trade manufacturing Markets Trade Data Pro Turkey Worldwide