The
Turkish textile and apparel industry is ready Haluk Özelçi Permanent
Representative of the Turkish Textile & Apparel
Exporters Association / Brussels The Turkish
Textiles and Apparel Industry is representing; 5,5% of Turkish Gross
Domestic Product, 20,7% of Industrial Production, 22,6% of
Manufacturing Industries Output, 21% of Manufacturing Labour Force,
32,2% of the Total Turkish Exports Earnings in 2003.
The Turkish T/C industry has shown a remarkable
achievement during the last decade. It has demonstrated a steady 9%
annual growth rate during the past 10 years while the Turkish economy
has only grown 3% on average per year. The growth rate of the textile
industry during the past decade was around 9 % annually. Within the
same period, the growth rate for the Turkish apparel industry was
% 8.1 per year. It is a fact that the Turkish
T/C industry has more than doubled the average growth rate of the
Turkish economy during the last 10 years. This is a clear indication
that the textile and clothing industry has always been the
driving force of the Turkish economy. Turkish
apparel exports has reached to 11 billion US $ in 2003 whereas textile
exports achieved a performance of 3,9 billion US $ during the same
period. The Turkish T/C imports in 2003 reached up to 5,04
billion $ in which the share of the textiles is 4,6 billion $
(including the imports relized under the inward processing regime). In
2003, the apparel imports were 405 million US $.
Turkish textile and apparel exports decreased in
1999 respecticely by % 2.8 and % 6.5 because of the low demand from
main import markets in the world as a result of the economic crisis in
East Asia (in 1997) and Russia (in 1998).
Another factor which has negatively affected the exports of the textile
and apparel sectors in 1999 is the increasing production cost in Turkey
depending on the difficulties in the Turkish economy.
In 2000, the exports increased marginally. The
apparel exports only reached to 7.195 billion $ by 0.69 percent
and textile exports to 2.8 billion $ by 0.97 percent. In 2001, the
apparel exports have increased to 7.5 billion $ by 1.1 percent and
textile exports to 2.9 billion $ by 7,6 percent. By the year of 2002,
Turkish textile and apparel export has gained a positive trend and
apparel export has increased by 21.3 per cent reaching to 8,9 billion $
and textile export by 3 percent to 3,2 billion $. In 2003, Turkish
textile and apparel export has continued its ascending trend. Apparel
export has increased by 24.6 percent reaching to 11,1 billion $ and
textile export by 22,5 to 3,9 billion $.
Turkey is a major cotton growing country. It ranks among the 6 biggest
cotton producers of the world. (China, USA, India, Pakistan and
Uzbekistan) In 1990 Turkish yarn production
was around 739.000 tons out of which. 515.000 tons were cotton
yarn, while 96.000 tons and 128.000 tons were wool yarn and synthetic
yarn respectively. Until 2003, Turkish yarn production increased by
263,5% and reached approximately to 1.948.000 tons. Cotton yarn
production increased to 1.164.000 tons while that of wool to 143.000
tons and synthetic yarn to 637.000 tons. The
situation of Turkish woven fabric market is similar to that of the yarn
market. In 2003, total Turkish woven fabric production is expected to
reach the level 2 billion 653 million meters with a total increase of
42,7% between 1990-2003. Woven cotton fabric production increased to
1.988.000.000 meters, and woven synthetic fabric production to 594
million meters. On the other hand, wool fabric production decreased to
55 million meters.
The textile and apparel industry always scored
higher capacity utilisation ratio than the average Turkish
manufacturing industry. The capacity utilisation ratios were 79,2
percent for textiles, 85,7 percent for ready wear in 2003.
The art of carpet weaving has been a centuries-old
tradition in Turkey. There are important carpet weaving centers in
Turkey whose names reveal the value of their carpets. Each region
produces its own unique style and design. The most well known of these
include Hereke, Kula, Bünyan, Kayseri, Yahyalı, Uşak, Milas, Isparta,
Yağcıbedir, Kars and Gördes Carpets. In 2003, Turkish carpet production
is estimated to be 57.5 million meters including 2,3 million m2 of hand
made carpets, 15,3 million m2 of machine made carpets and 39,9 million
m2 of tufted, felt carpets and kilims.
Turkish carpet exports has reached to 380
million US $ in 2003, of which the shares of hand made carpets is 18,7%
and machine-made carpets is 81,3%. Saudi Arabia took the first place in
our total carpet exports with a share of 11,9%. Almost a quarter of the
Turkish carpet exports are targeted to the European Union and Germany
is the second leading market with a share of 8,2% in total Turkish
carpet exports. With the above mentioned export
performance of the textiles and apparel industry in 2002, Turkey became
10th among the world largest textile exporting countries with a share
of 2.8% in the world textile exports and a share of 4.0% in the world
apparel exports, Turkey enjoyed the 4th rank among apparel exporters in
the world. The main export market for Turkish textile and
apparel goods is the European Union. For the year of the 2002, Turkey
is the; second largest apparel supplier of the EU following China with
a share of 13.7% second biggest textile supplier of the EU with a share
of 8,7%. In 2002 Turkey is the; 11th apparel
supplier of the USA with a share of 2.2% and also 11th textile supplier
of the USA with a share 2,1%. According to
figures of 2003, European Union is the biggest and most important
market for Turkish textile and apparel, the EU's share in Turkey's
total apparel export is 73,1% (8.1 billion US $) and its share in
total textile export is 37,4% (1.46 billion US $) in 2003.
The USA is the second largest market for Turkish
textile and apparel, after the EU. However, export figures in 2003 has
demonstrated a decrease in volume terms (-3.9%) and an increase in
value terms (3,0%), and reached to 1.7 billion US $.
As one of the largest textile and apparel producer
and exporter of the world, Turkey imports considerable amount of
textile machinery. In the past 10 years prior to 1993, total Turkish
textile machinery imports reached the level of 5 billion 300 million US
$. There are 3 leaps in Turkish textile machinery imports: first one in
1984, second one in 1986 and third one in 1990. In 1995 Turkish textile
machinery imports exceeded easily the level 1,5 billion US $ due to the
preparation of the industry for the Customs Union with EU. As of 2003,
Turkey imported textile machineries worth of 2,3 US $.
The new investments of Turkish textile and apparel
industry are directed towards new areas in Turkey. Until last years,
the biggest investments were realised in the Marmara Region, around
İstanbul and Bursa. During the last years, 56% of the new spinning
investments took place in GAP (Southeast Anatolia Project)
Region. GAP is a project which is composed of dams and irrigation
tunnels. It is anticipated that Turkish raw cotton production will more
than double once the project becomes operational. That is one of the
main reasons for which industrialists prefer to invest in GAP Region.
Another reason is the relatively cheap labour cost of the region if
compared with other more developed regions of Turkey. GAP Region
is followed by Marmara Region which is traditional industrial base of
Turkey. Turkish investments can be closely
followed through the so-called investment permissions granted by the
Undersecretariat of Treasury. These investment permissions enable
entrepreneurs to import duty free machinery, to be exempted from VAT
and other import and bank taxes and charges.
In 1995, Turkish textile and apparel industry had a large share (63%
according to the number of permissions) of the total investment
permissions granted in Turkey. Although this figure decreased to 34% in
1996 and 38% in 1997, 15% in 1999. And It has begun to increase by 2000
and reached to 29,7% in 2003. One of the
factors influencing the competitive force of any textile and apparel
industry is the labour cost. Werner International USA, studies textile
industry labour costs in different countries for years. The latest
version of this study in autumn of 2002, illustrates that Turkish
textile industry labour cost ranks between the expensive European
countries and cheap East Asian countries. In
2002, hourly labour cost of Turkish textile industry has been 2.13 US $
per hour. It is fact that textile labour cost in Turkey is 5 times
higher than in most of the Asian countries. Taking into account
the productivity of Turkish labour force which is equal to that of
Portugal and Greece, it is still profitable to produce in Turkey.
Turkey has been the cradle of textile in the world,
where textiles art flourished as a tradition with the harmonisation of
many cultures and civilisation in its history.
The average export prices of Turkey indicate that Turkish textile and
apparel industry managed an increased performance in export prices.
This performance is the result of the approach to produce value added
high quality goods. Comparison of the EU import prices gives a good
example of the Turkish textile and apparel industry's performance in
quality on the basis of price. According to data, Turkish exports are
much higher than average import prices of the EU. But one has to borne
in mind that, besides the geographic proximity of Turkey to EU, the
good trade relations between the EU importers and the Turkish exporters
that goes back to several decades is another reason which compensates
the price difference. On the other hand, supplying the quality within
the shortest time along with excellent service has some advantages
which are not directly related with cost but affect the
competitiveness.
Turkish textile and apparel industry is ready
to face the competition in the world markets and the challenges of 2005
syndrome. The motto of the Turkish industry is "free but fair trade".
The competitiveness of the industry is high enough to face any
competition coming from a supplier country as far as it is compatible
with the international trade rules.q