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.
AWARENESS OF DOMESTIC PRODUCTION
INCREASED IN THE PANDEMIC
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.
PROTECTION MEASURES ARE EXPECTED
TO INCREASE
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.
THE ORDER OF GLOBAL PRODUCTION
CAN CHANGE
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.
TURKEY STAND OUT WITH ITS
DOMESTIC PRODUCTION POWER
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.
THE SECRET OF SUCCESS OF THE
TEXTILE INDUSTRY: DOMESTIC RAW MATERIALS
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.
HOME TEXTILE, THE LEADING POWER
OF DOMESTIC PRODUCTION
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.