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International emerging markets: Turkey
14 Nov 2007
Turkey's move from an agri-based economy to a fast-growing industrial and commercial one provides an excellent opportunity for UK mechanical engineering manufacturing companies to find export trade to Turkey where there are currently few restrictions to trade, says Dr John L Collins, business development manager, The Manufacturing Technologies Association.
Turkey’s dynamic economy is a complex mix of modern industry and commerce. The country's recent GDP growth has been predominantly through its financial services industry that contributes nearly 60% of the GDP of £320 billion in 2006, growing at a real rate of 6% per year, with a work force of 41% of the well-educated working population or around10 million people. For a country about the size of Texas in the USA and 71 million people with a median age of 29 years, Turkey looks set to grow its economy predominantly through its literate and well-educated, youthful and dynamic populace.
In 2006 industry (mainly metals machinery, textiles and clothing) accounted for 23% of GDP and similarly employed about a quarter of the workforce. Agriculture accounted for nearly 10% of GDP but employed more than 35% of the working population of 25 million people.
Turkey imported approximately £66 billion of machinery, chemicals, semi-finished goods fuels and transport equipment in 2006, mainly from Russia (13%), Germany (11%), China (7%) and a surprisingly small 4% from the UK – about the same level as from the USA.
Investment in new machinery has been considerable and growing over the past five years: nearly £150 million of machining centres, transfer machines and lathes alone were imported in 2006! £90 million of sheet metal forming equipment was imported and all other metal working machinery accounted for nearly £110 million of imported mechanical engineering from around the world.
Opportunities for trade with Turkey are growing at a tremendous rate with 17 shipyards around the Turkish coastlines along the Mediterranean and Black seas, and 35 vehicle manufacturers spread across the country. Two of the worlds largest metal forming companies dominate the Turkish mechanical engineering scene.
Turkey's automotive and electronics industries have been growing a pace in the past 10 years and inflation is steady at just less than 10%. Oil now flows through the new Baku-Tblisi-Ceyhan pipeline bringing nearly 1 million barrels a day from the Caspian to market.
Turkey’s prominent geographical location at the crossroads of Europe, Central Asia and the Middle East provides easy access to all markets. Its main export markets are Germany (11%), the UK (8%), Italy (8%), USA (6%) France (6%) and Spain (4%) exporting mainly clothing, foodstuffs, metal manufactured goods and transport equipment.
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