Textile Industry
- We ranked as the fifth amongst the countries which exporting to world nations with $ 9.8 billion exports in 2020. We achieve %46 per cent of our exports to EU nations. (The second biggest supplier in Europe) Woven fabrics, technical textiles, yarns and knitted fabrics composed of the majority portion of our textile exports. The highest export surplus recorded in technical textiles with 2.7 billion worth of exports overall.
-14.5 billion $ export was made possible in ready-made clothing and apparel industries in 2020.
-$12 billion $ export target already set for 2021. Technical textiles, digitalization and sustainability played the major part in this progression to export targets.
Positive Movement of Supply Chain in Textile in Favor of Our Country
-The sensitiveness of the supply chain and the advantages bring into our country due to the distance between Europe and Asia has created an opportunity for us to increase our textile production capacity.
-European buyers in textiles continually moving their supply capability to Turkey. The tempting factors for buyers to channel their power of supply to our region would be the geographical proximity, rising container prices from the Far Eastern Nations to Europe and our technical competencies.
-Investments are continuing in every field of textiles specifically in yarn.
Costs and New Investments:
-Input and raw material prices have increased considerably.(For instance, %30-40 rise in cotton known as raw material of yarn, %50-60 rise in the prices of raw materials such as polyester fiber and viscose) Increasing prices have created a barrier for domestic fabric manufacturer to access yarn.
-Increasing yarn prices and the increasing demand associated with it, and as a result of the supply shortage in knitting industry; yarn investments are continued at large amounts within the year in our country.
Global Trends:
-Encouraging steps are being taken to revive production, and local & on-site production has become important.
-With the breakout of the pandemic, the trend concepts such as fast fashion, disposables and continual discounts leave their importance to the new emerging trends such as producing with quality / durability / extended product lifecycle and their usage, and minimizing environmental impact to the lowest possible levels.
The European Green Consensus and Its Impact on Textiles in the Scope of Trends:
-.It is an agreement that aims to reduce carbon emissions to 50% by 2030 and to zero (0) by 2050. As a result, the measurement of producers on carbon footprint surely made an impact on export power. One of the sectors under effect of this agreement is textiles which contains components such as water, energy and chemicals in its production.
-For this reason, our textile manufacturers are also involved in transformation and modernization studies for environmentally friendly, ecological and recyclable production with low energy consumption.
Textile Machinery Industry
Exports:
-China leads world nations in global textile machinery exports with an export value of $7 billion in 2020. (13% increase).Germany, Japan and Italy followed China by managing at around $2-2.8 billion of exports. Figures indicated that European nations losing their export power by 20-25% while China and South Korea enjoying a rise in exports around (%18) per cent. When we look at our own data, we come up with a loss around 752 million dollars by 5.9% per cent. (While our global share is 2.9%, our overall ranking is 9)
-Our export capability in our target markets continued with a rise since 2020 September (Uzbekistan, Bangladesh, Pakistan, Egypt, Iran, India, etc.) and in this way, we maintained our export power.
Imports:
-Global textile machinery imports figures shown that China leads others with 3.3 Billion $ immediately followed by USA with 3.1 Billion $ and leave Turkey behind with 1.8 Billion $ as the top three nations in 2020. (Our global stood at 6.5%). While all textile machinery importing countries has seen a decrease in figures (For instance, India - 43%, Bangladesh - 33%, Uzbekistan - 36%, Vietnam - 34% etc.) Turkey’s imports have on the other hand increased by half + %50.
-Turkey is the number one importer country in the global ranking, especially in the import of Yarn, Weaving and Knitting machines. (While the purchasing powers in countries such as China, India and Vietnam have decreased dramatically, Turkey's purchasing power in these 3 areas have increased significantly by 2-3 times). The overall portion of machinery and parts associates with the Far Eastern Nations also increasing gradually.
Results:
-Adding to increasing our market reach of domestic and foreign markets especially in areas where we actively producing, it is critical to control imports as well. The additional import tax applied in all textile machinery groups is 5% - 7% when we look at the figures about the subject. However, we are in urgent need of implemented policies to prevent from intense orders from Far Eastern Nations. Therefore, it is a requirement to deepen current legislations to protect and support the domestic machinery manufacturers in that direction.
-Among our manufacturers, we can talk about companies which increased their capacity and made new investments. In future investments, (expansion, modernization, etc.) support factors and financial support are significant and should be accessible.
-Within the framework of the European Green Consensus, it has become important to adapt to the production transformations in textile and to stay strong in order to compete with trendy and innovative technologies. Therefore, we should focus on R&D works about our textile machinery in this context. We have some members continued to work on technology works in this field as well.
-In our active domestic market, our influence in certain product groups is increasing compared to previous years. However, the use of newly developed, converted or localized products by our domestic textile manufacturers is a very important issue. As Temsad, we continued our work to form new cooperation on behalf of the intertwined development and interaction of the Textile and Textile Machinery sectors.
-The acceleration of domestication efforts, in this context, and the Technology-Oriented Industrial Action Program of the T.C. Ministry of Industry with its effective implementation by our sector and nationalization of import-intensive machinery are to be said important headlines. We also have members submitting their projects for the action program, whose applications were received in July this year. In the new action program, 26 products are taken to accomplish for the localization of our industry.
