The Power That BringTurkey to Global Domestic Production

In terms of ensuring the economic stability of Turkey, domestic production, supported by various policies since the history of the Republic, has enabled many sectors to become pioneers worldwide. Domestic production brings important opportunities in terms of increasing capacity and capabilities.


Domestic and national production, which is of great importance for economic development and the global status of countries, points to solid and sustainable growth in many areas, from foreign trade to supply. In terms of ensuring the economic stability of Turkey, domestic production, supported by various policies since the history of the Republic, has enabled many sectors to become pioneers worldwide. Domestic production means that the crucial stages of the production process of the products and the design and craft processes that are economically necessary are carried out within the country. In this context, the dependence of production on imports should be low, the inputs and intermediate products used in production should be produced in Turkey, and the design and artistry processes should be carried out within the country. Domestic production brings important opportunities in terms of increasing capacity and capabilities.



Especially after the COVID-19 pandemic spread worldwide, domestic and national production gained strategic importance for countries. Disruptions in the supply chain caused by the epidemic and reluctance to supply from countries such as China and the Far East enabled countries to concentrate on their production power. It has been witnessed again that domestic production is critical in many sub-product groups of service, industry, and agriculture sectors, especially health services. This situation also caused countries that do not have domestic production power to seek new supplier markets. In the search for new suppliers of countries in the US and African markets, especially the European Union countries, Turkey has been among the countries that stand out with its domestic and national production power, strategic location, logistics infrastructure, quality, and fast production approach.



Due to the globalization trend that started after the 1980s, the issue of which country the product was made in the product and goods trade began to lose its meaning. While international trade agreements and customs unions triggered globalization, governments started sharing each other's opportunities. Today, in addition to experience sharing, technology sharing has also changed the production balance of countries. This situation, which led to trade wars over time, caused localization in production to become necessary during the pandemic.



China, which accounts for about 28 percent of the global manufacturing industry production, has become an important economic power in recent years. However, the COVID-19 pandemic has shown all countries the risks of being dependent on a single country for production. In the future, it is thought that multinational companies will change their global production patterns. It is known that some companies from different sectors have already decided to move their production centers from China to other geographies. Mainly American and European-origin companies are expected to move their production to their own countries. In this process, countries like Turkey, with high human capital, strong logistics infrastructure, geographical and strategic advantages, and a wide range of production, are likely to come to the fore.



Global crises such as the coronavirus epidemic reveal the importance of close cooperation between countries and policies that facilitate trade. Turkey achieved significant export growth in 2021 thanks to its rapid measures in the commercial area during the pandemic. Many industries have diversified their target markets and achieved record export volumes due to supply chain breaks. In this process, Turkey has come to the fore with its solid domestic production infrastructure that can meet the needs of many countries and be self-sufficient. In this process, where the supply of any product from abroad became difficult, increasing demands made it necessary to focus on domestic production. It aims to strengthen economic stability by increasing investments made in the field of R&D and domestic production. While domestic and national production maintains its importance for the country's economy, it is noteworthy that there are some things that could be improved in front of investments in this field. It is critical to focus on value-added products and increase diversity in domestic production. Problems such as the low number of workers with professional qualifications, deficiencies in domestic raw material resources, and the inability to produce various intermediate products within the country's borders are among the obstacles to domestic production. However, problems such as the inadequacy of renewable energy investments, the current account deficit, and the lack of women's participation in the labor force make it difficult to develop domestic production capacity and capabilities. In order for Turkey to increase its domestic production power, it should use its human, physical and financial resources effectively and produce policies for sectors with strategic importance. It is stated that technology transfers and R&D investments have of strategic significance in domestic production.



Turkey, which has rich resources in terms of raw textile materials, is one of the most critical countries in cotton production. However, domestic resources are not enough for the sector due to the high current production capacity. It is known that Turkey, which has a cotton production of approximately 814 thousand tons, has a cotton consumption of around 1 million 633 thousand tons. There are 384 local organic cotton producers in Turkey, which has a 10% share in the world's annual organic cotton production of 240 thousand tons. The Turkish textile and raw materials sector, which imported 66 thousand tons of cotton woven fabric in 2020, decreased its yarn imports by 19.6 percent and cotton yarn imports by 9.4 percent in 2020. The sector's annual domestic yarn production capacity is over 4.6 million tons.

According to TOBB Industry Database records, there are 391 cotton yarn manufacturers in Turkey. As one of the leading exports sectors, the textile and raw materials sector is increasing its power in domestic production day by day. Especially in recent years, many integrated textile factories have started their activities with the power of domestic capital, while R&D studies in the sector also contribute to domestic and national production. The sector is accelerating its efforts to become one of the world's leading countries, especially in the field of technical textiles. High-value-added technical textiles have an important share in the country's exports. Turkey's outstanding success in technical textiles, especially the domestic production of nonwoven fabric used in masks and protective clothing, enabled the sector to increase its exports during the pandemic. The sector, which has reached an important point in yarn production, aims to focus on the domestic production of fiber.



Turkey is one of the first countries that come to mind in the world markets, especially when it comes to home textiles. With its high quality and fast production, advanced industry, richness in raw material sources, and advantageous position in terms of logistics, it has a successful graphic in the global market, especially in textile and ready-made clothing. One of the most important sources of this success is the power that the industry derives from domestic production. Being one of the largest home textile manufacturers in the world, along with China and India, Turkey is also the largest exporter in Europe.

At the point where we are today, it is seen that there is a tremendous demand for Turkish products that offer high quality in all areas, from production to promotion, from quality to marketing. Turkey, which produces higher quality, different and innovative products compared to its competitors, is increasing its export power in terms of the home textile sector day by day.