ISTANBUL, June 2026 — Turkey’s machinery industry exports have declined to $11.4 billion on an annualized basis, reflecting continued pressure from weak global demand, rising production costs, and intensifying international competition. The sector, one of Turkey’s key manufacturing and export industries, is facing challenges despite maintaining a strong presence in major export markets.
According to industry data, export volumes have softened as manufacturers contend with slower investment activity in Europe and other key markets. Although average export prices have remained relatively resilient, lower shipment volumes have weighed on overall export performance.
Cost Pressures Continue
Sector representatives point to increasing labor, financing, and energy costs as major factors affecting competitiveness. Exporters have also highlighted exchange-rate dynamics, arguing that rising domestic costs have outpaced gains from foreign-currency revenues, making it harder to compete with manufacturers in lower-cost countries.
Competition Intensifies
The machinery industry continues to face growing competition from Asian producers, particularly China, while protectionist trade measures and geopolitical uncertainties have complicated global trade conditions. Industry leaders warn that maintaining technological competitiveness and expanding high-value-added production will be critical for sustaining export growth in the coming years.
Europe Remains the Main Market
Despite the decline, European countries remain the primary destination for Turkish machinery exports. Germany and the United States continue to rank among the sector’s largest export markets, supported by demand for industrial equipment, engines, automation systems, and specialized machinery.
Industry Calls for Support
Industry representatives have called for measures to improve production conditions, support investment in advanced manufacturing technologies, and strengthen Turkey’s position in global supply chains. They argue that greater emphasis on research and development, innovation, and industrial modernization will be essential to reversing the recent slowdown in exports.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök