ISTANBUL — Erdal Bahçıvan, Chairman of the Istanbul Chamber of Industry (ISO), has warned that Turkey is facing the growing threat of premature deindustrialization, urging policymakers to adopt a comprehensive industrial strategy to safeguard the country’s manufacturing base and support technological transformation.

Speaking at the ISO’s July Assembly meeting, held under the theme “The Danger Facing Turkey: Premature Deindustrialization,” Bahçıvan said weak domestic and international demand, the real appreciation of the Turkish lira, and persistent financing challenges are placing increasing pressure on manufacturers.

He noted that manufacturing’s share of Turkey’s gross domestic product has fallen below 20%, warning that the country is shifting toward a service-driven economy before completing its industrialization process.

“Turkey is moving toward a service-sector-dominated economy without first completing its classical industrialization,” Bahçıvan said.

Industry Needs Long-Term Policy Support

Bahçıvan argued that Turkey’s industrial sector continues to struggle with structural weaknesses, including low technological intensity, insufficient equity capital, weak productivity, and heavy reliance on imported inputs. He warned that these challenges threaten the country’s ability to increase productivity, withstand external shocks, and achieve high-income economy status.

He stressed that the decline of manufacturing in advanced economies differs fundamentally from Turkey’s situation, noting that developed nations transitioned to knowledge-based economies after building strong, high-tech industrial sectors.

Welcome for Government Support Package

Bahçıvan welcomed the government’s recently announced industrial support package, describing it as a valuable and encouraging step following ISO’s earlier call for an emergency financing program for manufacturers.

He said the package represents more than financial assistance, calling it a sign of confidence in Turkey’s production capacity, investment appetite, employment, and export potential.

“Allowing production to breathe means allowing Turkey to breathe. Strengthening industrialists means strengthening our country,” he said.

Manufacturing Ecosystem at Risk

The ISO chairman emphasized that industry extends far beyond factories, encompassing small and medium-sized enterprises, suppliers, engineers, technicians, apprentices, and entrepreneurs.

He warned that weakening this ecosystem would not only reduce production capacity but also erode accumulated expertise, vocational culture, and the country’s long-term manufacturing capabilities.

Bahçıvan added that younger generations are increasingly turning away from industrial careers in favor of more flexible and service-oriented professions, reflecting a broader shift in attitudes toward manufacturing.

Call for Strategic Transformation

To counter the risks of premature deindustrialization, Bahçıvan called for a comprehensive national industrial policy focused on preserving productive capacity, reducing structural vulnerabilities, and accelerating technological transformation while maintaining the government’s broader economic program.

He also urged stronger cooperation between the public and private sectors and highlighted the importance of the ISO Strategic Transformation Center (SDM), describing it as a national initiative designed to help Turkey transition toward high-value, technology-driven manufacturing.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök