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Textile & Apparel Industry in Turkey
The textile and garment industry has made a significant contribution to the Turkish economy. The industry has been the locomotive of the Turkish economy for many years. Turkey’s garment and textile exports have continued to rise recently after starting to decline in January with the abolition of EU and US quotas.
The industrialization efforts of the 60s and 70s gave birth to the modern textile industry in Turkey. In the past, the sector operated as small workshops. But the sector showed rapid development and during the 1970s began exporting. Today, Turkey is one of the world’s leading producers and exporters of garments and textiles.
Turkish clothing and textile manufacturers have begun relocating production to Eastern Europe and Central Asia. In the last three years, Turkish textile and garment companies have faced difficulties after great success in the 1980s and early part of the 90s.
China’s textile exports after a decades-old quota system ended Jan. 1, 2005, and the WTO believes that in three years, the Asian giant could produce more than half of its textiles. Globally, up from 17% in 2003.
The end of the quota regime has sparked fears of job losses spreading around the world, including in Turkey, where exports of personal clothing and textiles are estimated at about $ 20 billion a year.
Therefore, it is necessary to understand the Turkish textile and garment industry, its weaknesses and strengths in the global market.
Current scenarios of textiles and apparel in Turkey
The textile and garment sector is the backbone of the Turkish economy, which has played an important role in the process of industrialization and market orientation of the economy over the last two decades. In the 1980s, it was the leading sector in terms of the global economy, and the export earnings of this hard-earned monetary sector contributed significantly to the economy as a whole. The textile sector continued to be an important contributor to the Turkish economy, one of the fastest growing sectors in the 1990s, with an average annual growth rate of 12.2%, while the Turkish economy averaged 5.2 percent. % Per annum. Total investment in the sector exceeds $ 150 billion, of which more than $ 50 billion has been invested in the last 5-10 years.
The textile industry began in the 1960s in small workshops, developed rapidly and turned Turkey into a global competitor.
The total number of companies in the sector controlled (95%) by the private sector is about 44,000 and 25% of them are active exporters. The garment industry is made up mainly of small and medium-sized companies, while the production of technology-intensive textiles is carried out by large companies. Today, about 20% of Turkey’s top 500 companies are involved in the textile and garment sector.
Low labor costs, qualified labor, cheap raw materials have played an important role in the significant growth of the sector. As well as the economic environment, liberalization, and export-led policies over the last two decades.
The production value of the sector is over 20 billion US dollars. Employment in the sector is estimated at about 4 million (2.5 million work directly and another 1.5 million indirectly through sub-sectors). Official statistics also show that about 500,000 employees in the sector are due to an unregistered workforce.
The garment sector exports about 60% of its production. Capacity utilization rate is about 75%, especially among exporters.
Turkey is also ranked among the world’s top ten producers of wool, rugs, synthetic fibers and polyester and polyamide fibers. While Europe’s third-largest polyester producer is a Turkish-US joint venture, Turkey’s synthetic production accounts for 15% of Western Europe’s capacity.
The textile and garment industry contributed greatly to the Turkish economy. Examples of the textile and garment industry are:
. 10% in GNP
. 40% in industrial production
. 30% of production workforce
. 35% of export revenue
The textile and garment sector contributes more than $ 20 billion to gross domestic product. This sector is most important for its export earnings. Its share of the country’s total exports has been between 33 and 39% since 1990.
The main export markets for Turkish textiles and garments are the EU countries, which account for about 65% of total textile and garment exports. Turkey is the second largest importer of garments and textiles to the EU, accounting for 8.2% and 4.8% of the EU’s total garment and textile imports, respectively, as of 2003.
Exports of textiles and clothing increased by an average of 14.6% per year during the 1980-2003 period. In particular, until the second half of the 1990s, the sector’s exports grew at a faster rate than Turkey’s total exports, as well as global textile and garment exports. In 2003, the sector’s exports totaled 15.1 billion US dollars, accounting for 32.6% of total exports. Exports increased by 23% in 2003, the value of the value to 2002. The increase in the share of garments in exports since 1986 indicates efforts to produce value-added products.
After the European Union, the United States is a huge and imminent market. Turkey is the 19th largest supplier of garments and the ninth largest US textile supplier with 1.9% and 2.9% respectively. In addition to the EU and US markets, new markets are in North African countries such as Tunisia, Egypt and Algeria. Countries in the Middle East are Syria, Israel and Saudi Arabia; Countries in Eastern Europe, Romania, Bulgaria, Poland and Hungary. And CIS countries. The sector faces quotas only in the United States and Canada. The Russian Federation was also a major market for Turkish textiles and clothing until the financial crisis of August 1998. It was the third largest market for garments and the ninth largest for textile products in 1997. Russia remains a potential market for textiles and clothing. With its high consumption potential coming out in the coming years, especially after the development towards better integration into the world economy and WTO membership expectations.
Turkey is an important cotton country, one of the raw material advantages for the garment industry. Turkey is a traditional cotton producer and uses this advantage in the textile and garment sector. Turkey ranks No. 1 in Europe and No. 6 in the world cotton production with an average production of 800,000-900,000 tons per ton.
Moreover, with the completion of the irrigation project in the southeastern Anatolian Project (GAP), Turkey’s most comprehensive development program, current cotton production is expected to double in 2005.
In the 2003-04 season, Turkey produced 893,000 tons of cotton. About 30% of cotton production is high quality cotton and the rest is medium quality. The cotton industry offers a competitive edge to the textile industry, which uses cotton as its main raw material.
Cotton market trends
The main destinations for cotton yarn exports are Italy, Portugal, Greece and Belgium, and for cotton fabrics from the United Kingdom, Italy, the United States and Belgium. While Turkey used to be a cotton exporter, the trade balance returned in 1992 and since then Turkey has been a net importer of pure cotton since domestic demand exceeded existing stockpiles. In addition to cotton, Turkey has a strong position in the production of synthetic fibers, wool and mohair. Turkey ranks ninth in synthetic fibers, eighth in wool and third in mohair production in the world.
Home textile industry
In addition to the Turkish textile industry, the Turkish home textile industry also showed growth in manufacturing and exports. Also. In recent years, home textile production has shown a steady increase due to increasing domestic and external demand for home textiles. Turkey’s home textile industry has recorded growth in production and exports in recent years. Almost all types of home textiles are made in Turkey. These can be listed below in the order of their export value: Bed linen, Rugs, Tablecloths, Towels, Curtains, Curtains, Curtains, Curtains, Interior Curtains or Beds, Blankets, Pillows, Blankets, Pillows, Blankets
In the field of home textiles, in addition to large companies, there are many small and medium companies scattered throughout the country. As part of the textile industry, the home textile sector accounts for 3.2% of Turkey’s total exports and is an important subset of the Turkish economy. European countries are the most important markets for Turkey’s domestic textile exports. Today, Germany, the United Kingdom, France, the United States, the Netherlands and the Russian Federation are the main markets for Turkey’s domestic textile exports. New markets such as Poland, Hungary, Romania and the CIS are gaining more and more importance.
Foreign investment in the sector
Turkish textile and garment products have a good reputation in foreign markets as a result of the use of high quality cotton in Turkey, the widespread use of CAD (Computer Aided Design) and CAM (Computer Aided Manufacturing) and the rise. Up of the number of qualified employees.
The sector recognizes trends in international markets towards increasing demand for healthier and more environmentally friendly products and tries to adapt to these developments by regulatory and technical regulations.
However, it is difficult to maintain its competitive position in a world market full of emerging players. As a result, manufacturers have shifted their operations to value-added products and branding. Currently, 30% of Turkish manufacturers have their own designs and brands in the international market.
As current studies show, developed countries will experience a decline in global textile production, while developing countries will increase their production capacity to meet growing demand. It is also estimated that by 2005, developing countries will increase their self-sufficiency in textile production. The United States, with an estimated 200% increase in textile consumption, also estimated a 32% decrease in self-sufficiency in 2005.
Turkey, with its adaptation to European standards and regulations related to the environment, health, quality and safety, aims to produce more value-added products into the era in which the Turkish textile industry will be famous for its quality. Trademarks and product pricing for Made in Turkey logos.
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