MACHINERY EXPORT REACHED TO 4.3 BILLION DOLLARS IN THE FIRST QUARTER
MACHINERY INDUSTRY REALIZED EXPORT FOR 1.6 BILLION DOLLARS IN MARCH INCREASED ITS TOTAL EXPORT TO 4.3 BILLION DOLLARS IN THE FIRST QUARTER OF THE YEAR. STATING THAT THEY FOCUSED ON THEIR INTERNATIONAL CONTACTS TO COMPENSATE THE NEGATIVE IMPACTS OF THE ECONOMICAL UNCERTAINTIES IN EU COUNTRIES WITH WHICH MORE THAN HALF OF THE MACHINERY EXPORT HAS BEEN REALIZED GENERALLY ON OUR FOREIGN TRADE, KUTLU KARAVELIOĞLU, THE CHAIRPERSON OF MACHINERY EXPORTERS’ ASSOCIATION (MAİB) EXPRESSED THAT THEY AIMED TO REACH TO EXPORT INCREASE RATE WHICH IS APPROXIMATELY 18 PERCENT IN USA AND ENGLAND IN ALL ADVANCED INDUSTRIAL COUNTRIES.
Machinery industry increased its total export value in the first quarter of the year even though the slowdown shown up in the industrial manufacturing in Germany which is the biggest export market of Turkey. Drawing attention to that the increase by 17 percent in the machinery amount sold to abroad reflect to the export cost in the desired rate, Kutlu Karavelioğlu, the Chairperson of MAİB Board of Directors said that: “Impact of two major uncertainties which will shape the direction of world trade is deepening swiftly. Ending of slowdown of the trade wars between USAChina and EU-England and extension of the negotiations in contractual Brexit subjects cause a slowdown on the expectations towards world economy.” and he pointed out the increased pressure on the investment goods because of the shrinkage of the growth prediction for global economy to 2.6 percent. Emphasizing that the recession in domestic industrial manufacturing, capacity usage rates and trust indexes is turning into horizontal direction has been observed, Karavelioğlu expressed that: “We believe that the country agenda will be directed to the economy again.”
“MACHINERY PRICES ARE RECESSING”
Drawing attention that euro has lost value against dollar significantly and our the decrease in export carried out to Germany, which is our main market to 11 percent limit the increase intended in the machinery export, Karavelioğlu stated that the machinery manufacturers have to decrease prices to fill their techno-economical capacities in a global market shrinking gradually and he said: “Turkish machinery manufacturers who have become a strong actors in the international competition are affected by this situation.” Stating that tonnage increase in the exported machineries is 43 percent in engineering and construction machinery, 38 percent in agricultural machinery and 32 percent in engines and generators; however the increase in total machinery export income cannot exceed 4.4 percent, Karavelioğlu said that: “Tonnage of the machinery which we exported in the first quarter of the year increased by 17 percent and reached to 750 thousands of tones. There are some advantages of realizing competitive prices in the products of which added value is high; however, another important reason of the recession of the average kilogram price which was 6,3 at first to 5,6 dollars gradually in the last five quarters is the shrinkage in the domestic market. Maintaining the export increase even with the amount impact seems to be only way in short term to carry out the activities of our sector in a healthy way. Our whole focus will be on taking more shares out of the markets which are growing during this term.”