Ramazan Kaya, President of the Turkish Clothing Manufacturers Association (TGSD), stated that the capacity utilization, which was 75 percent in 2022, has also fallen dramatically to 10 percent after the earthquake, and could only recover at around 40 percent levels as of the last quarter of 2023. While stating that the loss of qualified employment is continuing in the region, and that the difficulties in accessing finance and loans make it difficult for the wheels to turn, Kaya emphasized on the loan debts of the companies in need which should be restructured.
“We will Resume Our Support Until Permanent Housing is Completed”
Commemorating those who lost their lives in the earthquake, Kaya said, “We commemorate those who lost their lives in this great disaster that our country experienced, and extend our condolences to their families and to our nation, and once again convey our wishes for a rapid recovery to the injured. Undoubtedly, it is not possible to replace our losses, but we should not forget for a moment the importance of supporting each other and solidarity in these difficult times. We must continue to support the recovery as a whole by doing our best. As TGSD, we extended our aid to the region from the first day of the earthquake. We will continue our support until the transition of the citizens which we accommodate in our 310-container living center, delivered in Adıyaman last April, to permanent residences,"
“We Experienced a 12.5 Percent Employment Loss in the Country and 14.2 Percent around the Earthquake Region”
While stating that the region where the earthquake disaster occurred is one of the strongholds of the ready-made clothing industry, Kaya said, “We experienced serious losses in every field from employment to production in the year following the earthquake. In fact, there was no significant change in the number of workplaces in the region. While there were 1,366 ready-made clothing manufacturers in the region by the end of 2022, this number decreased slightly to 1,300 by the end of 2023. The number of companies decreased around Malatya, Adıyaman and Hatay in general. However, while the decrease in the number of companies remained below 5 percent, employment has fallen by 40 percent, from 143 thousand to 90 thousand. While 19.7 percent of the total employment in the sector was carried out by the earthquake region, this share decreased to 14.2 percent. The cities where sharp reduction in employment figures recorded as Malatya and Adıyaman. In addition to the losses and migration we experienced due to the earthquake, the 12.5 percent decrease in employment in our sector throughout the country last year also has a major impact on this decline."
“Production Dropped by Half, Capacity Could Reach 40 Percent at Maximum”
While referring to the impact of the earthquake on ready-made clothing production and capacity, Kaya continued as follows; “According to 2022 data, our 11 provinces affected by the earthquake which covered 8.9 percent of our country's total ready-made clothing production with an annual production of 352 thousand tons. In 2023, the production of 11 provinces decreased by approximately 50 percent to 175 thousand tons and their share in total production was 4.5 percent. During this period, Turkey's total production decreased by 3 percent to 3.85 million tons. On the other hand, while concerning the capacity utilization in the region, which was 75 percent before the earthquake, has fallen dramatically to 10 percent just in the first quarter of 2023. Although the capacity utilization rate was 20 percent in the second quarter, 30 percent in the third quarter and 40 percent in the last quarter, we are still far behind the figures before the earthquake."
“The biggest export loss is in Kahramanmaraş, Hatay and Diyarbakır”
While announcing the export figures, Kaya said, “The Turkish ready-made clothing industry, which exported 19.2 billion dollars in 2023 with a decrease of 9.2 percent compared to the previous year, also experienced an 11 percent decline in the earthquake zone. Accordingly, exports to the earthquake zone, which was 541 million dollars in 2022, decreased to 482 million dollars in 2023. The provinces where exports decreased the most in the region were Kahramanmaraş, Hatay and Diyarbakır."
“Support of Financial Institutions and Public Regulations are Needed”
TGSD President Kaya mentioned about their anticipation regarding the recovery process for the Turkish ready-made clothing industry by the second half of this year while reminding about the losses which experienced in 2023 and said, “As in all of our regions, various supports are needed for the recovery of our manufacturers in the earthquake zone. First of all, difficulties in accessing finance and loans make it difficult for the wheels to turn. Adequate and appropriate conditions cannot be provided for export credits, which are one of the most important needs of the sector. In addition, companies in need are waiting for restructuring of their existing loan debts. In summary, support from financial institutions and improved public regulations are needed for our region to get back on its feet. These regulations will make a significant contribution to the solution of the qualified employment problem that has been present since the early periods of the earthquake."
About TGSD
Turkish Clothing Manufacturers Association (TGSD), one of Turkey's most established sectoral associations, was founded in 1976 and gained the status of an association for the public benefit with the decision of the Council of Ministers dated 2003. TGSD, which represents the entire value chain of the sector with more than 450 members who realize 60 percent of Turkey's ready-made clothing exports, is the most inclusive NGO’s in the sector. The Association, which leads the ready-made clothing industry to institutionalize, to become a world brand with its product and service quality by showing determination in innovation and sustainability, to renewing all its processes with a focus on digital and green transformation and to making large-scale investments, aims to increase the competitiveness of the sector with the TGSD Development Academy. TGSD also keeps its finger on the pulse of the industry with the Istanbul Ready-to-Wear Conference, which it has organized every year since 2008 uninterruptedly and which is also included in international calendars.
