Kahramanmaraş-centred textile manufacturer BLC Group, which provides significant added value to Turkey by exporting to the European market, started to gain strength from artificial intelligence and machine learning for sustainable growth. Şahin Balcıoğlu, Chairman of the Board of Directors of the company, said, "This year, profit margins have dropped significantly due to the global inflation and increasing costs. We aim to reach the goal of zero error in production with machine learning and artificial intelligence. In addition, we will recover our energy demand entirely from clean energy."
Economic fluctuations around the world have significantly dropped profit margins in the textile industry. Şahin Balcıoğlu, Chairman of the Board of BLC Group, Kahramanmaraş centred company which produces in areas such as textiles, food and composites, pointed out that intermediate or contract manufacturing is generally carried out in textiles in Turkey, and said, "In advanced countries, on the other hand, technical products with high added value and branding, which we feel its absence continually, are at a high level. Companies that have become brands can market a product, which we produce and deliver in an end-product form and earn a maximum of 30 percent in a profitable period, for 300-400% more than the price offered by us."
Lacking Behind in Added Value
While pointing out that the biggest problem here is the lack of value-added production, Balcıoğlu continued as follows; "We are a labor-intensive sector that gains from production. We have enhanced our capabilities in producing intermediate products. Unfortunately, the number of companies that carry out branding task in the right direction is very few. Developing technology and increasing production capacities over time increased the competition even further. In result, this enforced us to sacrificing profit margins.’’ Şahin Balcıoğlu recorded that the most valuable expense items in production are energy, raw materials and labor and also gave the following information about the improvements they made in these areas; "We are making investments in machine learning, production optimization with artificial intelligence and renewable energy to qualify for our own energy in this subject. We have a critical technological transformation program. We also do R&D and P&D on wearable technologies. This is a project which we are developing for the future."
Right Production Blueprint Should Be Implemented
Balcıoğlu shared personal views on what level industry players in advanced countries are affected by the global inflation and purchasing trends; "These are also experiencing a decline in their profitability, but do not come into existence due to the margins which are higher than ours. Producers in Turkey are facing issues both relate to inflation and purchasing power adding to the contraction in market share and volatile currency risks. As long as these conditions remain, I do not think that the profitability of the sector will increase in Turkey for the coming days as well. I believe that the best precaution to take here is to focus on sustainable production, to achieve right and efficient production, and to invest in technology and renewable energy. I think technical textiles with high added value are also a channel in which profitable production can be made possible. Investments and liquid always favor safe harbors. Turkey's position to become a countable spot for stable and foreign investments and purchases will bring enormous benefits in the field of economy."
