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EVENT

MAY 2019 ISSUE: 132

DOMESTIC MACHINERY HIT THE SPOT FOR TURKISH ECONOMY

TURKISH MACHINERY SECTOR INCREASED ITS EXPORT INCOME BY 5.8 PERCENT IN THE FIRST FOUR MONTHS OF 2019 AND REACHED TO 5.8 BILLION DOLLARS. STATING THAT THE EXPORT PERFORMANCE OF MACHINERY SECTOR IS INCREASING YEAR BY YEAR, KUTLU KARAVELIOĞLU, THE CHAIRPERSON OF MACHINERY EXPORTERS’ ASSOCIATION (MAIB) BOARD OF DIRECTORS EXPRESSED THAT: “WE HAVE TO CATCH UP WITH THE AMOUNT INCREASE IN MACHINERY EXPORT IN THE BASIS OF VALUE. WE ALREADY HAVE THE TECHNOLOGICAL BACKGROUND AND KNOWLEDGE AND EXPERIENCE TO ENSURE THIS. MACHINERY SECTOR SHOULD BE PLACED AMONG THE STRATEGICAL SECTORS AS IT IS DONE IN THE WHOLE WORLD AND SHOULD BE SUPPORTED WITH BOTH INDUSTRIAL AND COMMERCIAL POLICIES WITHIN THE SCOPE OF NEW ECONOMIC PROGRAM TO MOVE THIS CAPACITY TO GLOBAL COMPETITION. DOMESTIC MACHINERY HITS THE SPOT FOR TURKISH ECONOMY.”

Turkish Machinery carried out significant volume of export in the countries of which industries have been highly developed, especially in USA, England, Italy and France in the first four month of the year and increased the amount of machinery it exported throughout the world by 19 percent. The recession in the German industry which is the biggest export market of Turkish machinery sector caused the machinery export carried out for this country to decrease by 8.8 percent. Turkish machinery sector increased its export income in the first four months of the year by 5.8 percent compared to the same period of the precious year with its performance; and the total export volume of the sector increased to 5.8 billion dollars.

COVERAGE RATIO OF EXPORT FOR IMPORT REACHED TO 76.5 PERCENT

While evaluating Turkish Machinery’s performance in the first four month, Kutlu Karavelioğlu, the Chairperson of MAIB Board of Directors emphasized that the coverage ratio of export for import reached to 76.5 percent in the machinery sector and expressed that: “Domestic machinery hits the spot for Turkish economy. Encouraging domestic industrialists to use domestic machinery and implementing the policies to support the export of all goods and products of advanced technology should be the priority to increase the impact of such situation. To meet the foreign trade deficit is the national responsible for us all.”

“DOMESTIC INDUSTRIALISTS SHOULD USE DOMESTIC MACHINERY”

Drawing attention that the problems still experienced in manufacturing industry increase the bargain capacity of international customers and the financial statuses of the firms have impact on the prices of the products, Karavelioğlu stated that: “Shrink in the domestic market moved the competition among the firms to the abroad and it caused our machinery to be sold under their actual value in the first part of the year. We see that unit prices in the export decreased by 10 percent compared to the same period of the previous year. We expect this problem to be overcome by the economical measurements to be taken within the scope of the New Economic Program and the prices will balance at the point which we actually deserve. On the other hand, we still invite our domestic industrialist to use domestic machinery.” Underlining that economic improvement and growth are only possible with the independence of the domestic industrialist on the imported machinery and usage of the domestic machinery in the manufacturing, Karavelioğlu warned that: “Import of the second product to be mostly imported after the energy for Turkey causes us to have a deficit above 10 billion dollars in each year. If the foreign trade deficit for 1.9 billion dollars created in the first four months of the year by import of internal combustion engines, office machinery, pump and compressors, turbine and turbojet maintains its increase in the rest of the year, the burden created by it will have a great impact on our economy.”