According to the statement made by the Machinery Exporters' Association (MAİB), Turkey's total machinery exports, including free zones, reached 17 billion dollars at the end of the third quarter of the year. Stating that machinery exports once again crossed the 2 billion dollar threshold in September, Machinery Exporters' Association Chairman Kutlu Karavelioğlu said, “We increased our machinery export average, which was around 1,5 billion dollars a month in the past two years, to 2 billion dollars this year. With the continuation of this momentum, we anticipate that we will generate an additional income of approximately 5 billion dollars at the end of the year and close the year with 23 billion dollars of exports. The pandemic has been a factor that strengthens our hand in the foreign market, we want to make this rise permanent as a part of green and digital transformations.
As of the first 9 months of the year, the total exports of the machinery industry, which increased its exports by 30,2 percent compared to the same period of the previous year, reached 17 billion dollars, including the free zones. With the figures free from the pandemic effect, the increase in machinery exports was 2019 percent compared to 18,8. While the sector's exports to Germany and the USA exceeded 9 billion dollars at the end of 3 months, the increase in exports in other main markets such as the United Kingdom, Italy and France reached an average of 40 percent.
Kutlu Karavelioğlu, Chairman of the Machinery Exporters' Association, stated that they have gained momentum in machinery exports by responding quickly to regional demands and that the increase will continue in the first half of 2022 without slowing down.
“World trade in goods has increased by 12 percent on value basis and 23 percent on quantity basis in the last 14 months. This shows that the price increase had a significant share in the rise experienced. The rising producer inflation, especially in the EU and the USA, the increase in commodity prices, especially copper and steel, and the high costs in logistics have a great impact on prices. The beginning of the stocked working period in raw materials and components also creates an additional working capital requirement. This need has turned into a cost factor that cannot be neglected in SME-based sectors such as machinery manufacturing, but we can say that the measures for security of supply, namely shortening the chains and making them alternative, and the problems that support this diversification in the logistics sector, make us stand out especially in commercial relations with the EU.”
“We are on the threshold of a world that will become more and more expensive”
Pointing out that they made good use of this period in which regional relations came to the fore in terms of supply security, Karavelioğlu said, “We increased our machinery export average, which was around 1,5 billion dollars per month in the past two years, to 2 billion dollars this year. With the continuation of this momentum, we anticipate that we will generate an additional income of approximately 5 billion dollars at the end of the year and close the year with 23 billion dollars of exports. The pandemic has been a factor that strengthens our hand in the foreign market, we want to make this rise permanent as a part of green and digital transformations.
Pointing out that the world is rapidly entering a new life process and a much more expensive and challenging period has begun for everyone, Karavelioğlu said:
“If the societies that are on the brink of a world where we will live more and more expensively, had the costs of limiting carbon emissions been covered in time and the problems had not been accumulated by delay, we would not be under a great burden that we do not know how much we can handle today. Sustainability is a concept that makes all the links of the production chain expensive and consequently increases the product prices significantly. The fact that the use of some substances will be limited and the supply shortage in alternatives is reflected in the costs quickly. We are already seeing the effects of the changes in energy resources, namely the conversion from fossil fuels to renewable resources. The cost of new investments to be made to control the climate crisis is an expensive factor in itself. We should be aware of the haste brought to all societies by the effort to keep up with this transformation, and we should know well that machines will play the leading role in this process.”
“We have no reservations about green and digital transformation, but…”
Karavelioğlu pointed out that those who prepared for green and digital transformation in the industry did not make a fuss, and said:
“The number of people who fulfill the requirements of neutralizing the carbon footprint and know that these days will come is higher than it is thought in Turkey. Those who are prepared look forward to the implementation of certification and trading systems that will demonstrate their strides and put themselves ahead of their competitors. As an industry that follows the developments in EU legislation from the very beginning, we continue to draw attention to these discussions with our Carbon Footprint campaign, which we started in 2018 with a proactive attitude. Our Digital Guide, which we developed for the digital leg of Twin Transformation, has been available for more than three months. We have just made the calls for our Ur-Ge project, which we prepared on the practice of Green Transformation. We see it as an important advantage that Turkey has increased its renewable energy resources to over 50 percent; While we do not have any reservations about complying with the EU's carbon neutral continent targets, we believe that it is essential to provide us with the support that will be provided to our competitors in their own countries.”
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