Turkish textile and clothing exporters in bullish mood – At first glance, the future looks bright for the Turkish economy in general, and the textile and garment manufacturing sector in particular – Turkish textile clothing exporters bullish mood - Arhive
Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood
Turkish textile and clothing exporters in bullish mood
By Jozef De Coster
Source : just-style
Turkish denim giant Taypa is on an expansion drive
At first glance, the future looks bright for the Turkish economy in general, and the textile and garment manufacturing sector in particular. During the recent Istanbul Yarn Expo there was optimistic talk of growth and progress, with machinery suppliers at the neighbouring ITM fair confirming that Turkish investments are on the rise. But there are concerns, too, as Jozef De Coster reports.
Turkey’s national economy enjoyed over 7% growth in the last quarter of 2017. According to the World Bank, Turkey’s growth prospects are reasonably robust, with an expected 4.7% growth rate for 2018 and the medium term.
While exports of both the Turkish textile and clothing industries achieved only modest growth in 2017, rising 2.5% and 3.0% respectively, industry leaders predict that 2018 will be better. Last year, textile exports amounted to around US$10bn and clothing exports to around US$17bn.
Ismaïl Gülle, chairman of the textile association ITHIB, optimistically expects textile exports will rise in line with the 1.1% increase attained in the third quarter of 2017.
Hikmer Tanriverdi, chairman of the Istanbul Apparel Exporters’ Association IHKIB, forecasts an 8-10% increase in clothing exports in 2018. It bodes well that in January 2018 clothing exports exceeded those of January 2017 by 15%.
After vehicles, clothing is Turkey’s most successful export product – last year representing 9.4% of Turkey’s total exports. Exports of knitwear amounted to US$8.8bn (5.6% of total exports), while exports of woven clothing reached US$6.0bn (3.8%of the total).
“The higher production cost in Turkey compared with the Far East can be levelled out by the benefits of shorter timelines and faster reactivity to market developments”
This includes a new denim washing and garment plant being set up by Turkish denim giant Taypa. Due to be completed by the end of 2018 it will employ 2,500 people and produce 7m pieces per year
The company is also partnering on a new US$1.5bn joint venture facility under construction in Algeria’s northwestern region – which is described as the largest clothing and textile manufacturing facility in the Europe and Eastern Mediterranean basin. It is also due to start production this year.
Turkish vision
The administration of Turkish President Recep Tayyip Erdogan released a list of goals, called ‘The 2023 Vision,’ to mark the centenary of the Republic in 2023. One of these goals is to increase Turkish exports to US$500bn, which is breathtakingly ambitious considering that in 2017 total exports stood at US$157.1bn.
But it is not just the Turkish administration that believes in miracles. Yusuf Gecü, chairman of Mesiad, the Merter Industrialists’ and Businessmen’s Association, believes that Merter, a district in Istanbul mainly known for its ready-to-wear, will double its exports within five years.
He claims that US$7.5bn of the country’s US$27bn textile and apparel exports already come from Merter. By 2023, Merter’s exports are expected to reach US$15bn, while total Turkish textile and apparel exports should exceed US$50bn.
Hadi Karasu, chairman of the Turkish Clothing Manufacturers’ Association TGSD, believes that in order to reach exports of US$25bn in the next five years, the Turkish clothing industry should not so much focus on exporting more pieces as on doubling the average value of exported garments from US$20/kg to US$40/kg.
Worries
According to the World Bank, domestic challenges and a deteriorating geopolitical environment have negatively impacted Turkish exports, investment, and growth. There are reports that educated and wealthy citizens are increasingly leaving the country. And according to several sources, there are signs that the economy is faltering – which could be one of the reasons President Erdogan called snap elections for 24 June.
The Turkish Central Bank has recently updated its inflation estimate for the end of 2018 from 7% to 7.9%. According to Trading Economics, Turkey’s unemployment rate was 10.3% as of October 2017, up from 8.5% one year earlier.
Even the successful Turkish clothing export industry has reasons to worry about the future. Around 70% of Turkey’s total clothing exports are destined for Germany, the UK and other EU countries, but competition from cheap labour countries Bangladesh and Pakistan – which enjoy zero duty access to the EU – is increasing.
The Turkish textile and clothing associations want more government support in terms of sector-related subsidies and incentives. On 24 February 2018, in the textile city of Denizli, which reportedly accounts for half of Turkey’s US$3bn annual home textile exports, Minister of Economy Nihat Zeybekçi promised the Ministry would provide more incentives to the textile and ready-to-wear sector to allow it to focus on Industry 4.0 and e-trade.
In the meantime, various problems remain: the lack of skilled workers and textile students, the focus on traditional products (home textiles and clothing), the exploitation of Syrian refugees.
In late 2017, a report from the UK-based Business and Human Rights Resource Center (BHRRC) revealed that while some brands such as UK-based New Look, Next and SuperDry, as well as Spanish label Zara, were taking sufficient action, others showed little evidence of steps to stop exploitation of refugees.
Hard hit Turkish industry is not knocked out
P.S: If you liked this article, you might enjoy the just-style newsletter.
Receive our latest content delivered right to your inbox.
Leonie Barrie,
Managing editor
Related Topics
-Turkish textiles firm hand in hand with Ethiopian staff – Turkish textiles Ethiopian
Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood Turkish textile clothing exporters bullish mood