Machinery Exports is Expected to Reach 63.3 Billion Dollars in 2030

Machine manufacturing industry, the countries having their own production and product technologies play a decisive role in converting them into a developed economy. Therefore, the countries impose a special importance and priority to advancing their machinery industry and increasing its competitive strengths.

Machinery Exports is Expected to Reach 63.3 Billion Dollars in 2030

Machine manufacturing industry, the countries having their own production and product technologies play a decisive role in converting them into a developed economy. Therefore, the countries impose a special importance and priority to advancing their machinery industry and increasing its competitive strengths.

In connection with this, Turkish machinery industry has a privileged position within the scope of Turkey’s aim at being a developed and industrialized country. The targets set by the sector for 2030 also strengthen this position. Nevertheless, the plans and programs introduced in the current year such as; 11th Development Plan (2019-2023), IVME Financing Package Program, Export Master Plan and Technology-Oriented Industry Action Program evaluates the machinery industry as a priority area and this clearly shows the importance that the public administration attaches to the sector.

Exports of machinery, for 17 years, have been increasing at a rate of four times the world’s average growth. If the expected growth in Turkey’s export in the target countries and in high potential product groups can be caught in all countries and across the sector, it is aimed to obtain a share of 63.3 billion dollars from the world machinery export market which is expected to reach 4.5 trillion dollars in 2030.

TIM President Ismail Gulle indicated that the machinery industry bears the highest potential and is the path to follow, then emphasized that the production is actualized by the machinery in automotive, textile, carpet, agriculture and in many more sectors. The continued as follows: “Not only in the export of machinery, but also in the export of other sectors need to increase the use of domestic machinery. R & D investments in the machinery sector and the number of patents reach 20 percent of the total manufacturing industry. The number of registered brands rose to 3 thousand 987. The machinery industry is the sector with the highest number of R & D centers. Last year only, 59 new R & D centers were established and the total number in this field rose to 176. Our machinery sector with a unit price of 5.6 dollars is well above our value-added average. Through the successful momentum achieved by the intensive efforts of our exporters, we were able to carry the import coverage ratio, which was 40 percent in 2010, to 62 percent today.”

Comprehensive machinery exports rose 14.5 percent in value base in 2018

The machine export figures, which were calculated comprehensively, increased by 14.5 percent in the world in 2018 and rose from 14.99 billion to 17.16 billion US dollars. Annual export numbers increased the highest in recent years. Two factors contributed the most to this increase. Firstly, after the sharp contraction in domestic demand in the second half of the year, the machinery manufacturers gave all their weight to exports. On the other hand, despite the slowdown in the global economy and commercial protection measures, demand for machinery in the markets was strong. Accordingly, machinery exports demonstrated a significant increase.

Considering all together with the sub-product categories, in 2018, exports increased in 21 out of 23 sub-machine groups. The export of textile and apparel machinery increased by 19.3 percent compared to 2017 and achieved 722,086 thousand dollars.

Comprehensive machinery exports rose 14.5 percent in amount base in 2018

The machine export figures, which were calculated comprehensively, increased in amount base by 12.6 percent in 2018 and rose from 2.57 million tons to 2.90 million tons. The export of textile and apparel machinery increased by 18.2 percent compared to 2017 and achieved 126.343 tons of sales.

Turkey’s Share in World Machinery Exports in 2018

In world machinery exports, when evaluated with 2018 figures, the highest share among the sub-sector categories exports belonged to reactors and boilers with 3.52 percent. That was followed by textile machinery with 2.38 percent share, whose turnover was 30 billion US dollars worldwide and 714 million US dollars in Turkey.

In 2018, 30.037 million dollars of textile and apparel machines were exported worldwide. The first three countries that Turkey made the most exports respectively are; England, Germany and Uzbekistan. England got a share of 12.6 percent with 90 million dollars’ worth of exports, while Germany and Uzbekistan took a share of 7.3 percent with 52 million dollars’ worth of exports.

Increase in Exports and Decrease in Imports

When export figures of the past year, 2019, observed, according to the figures of the first 10 months of the year, the textile machinery sector was one of the product groups that could provide an increase in exports compared to many sectors. It was seen that this sector closed the year 2018 with 750 million dollars of export and in the first 10 months of this year, it achieved a 10 percent increase in exports compared to the previous year. In addition, imports of textile machinery, which amounted to 1.9 billion dollars in 2018, dropped significantly this year.

Turkey’s imports of textile machinery decreased by 48 percent in the first 10 months of 2019. As of the end of 2019, it is expected that there will be an export of 800 million dollars and an import of 1 billion dollars.

The Turkish textile machinery industry, which is able to sell textile machinery to 180 different countries of the world, has a share of 3 percent in total world textile machinery exports.

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