August 2017
Issue: 111
Machinery Exporters Union Monthly Magazine
in english
LEGISLATION IS PREPARED FOR POST PURCHASE SERVICE IN INDUSTRIAL PRODUCTS The General Directorate of Protection of the Consumer and Market Suveillance of the Ministry of Customs and Trade has initiated a study aimed at bringing industrial products, which mainly consist of machines, under the scope of “Post purchase Services Legislation”.
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he delegation consisting of the General Secretaries of The Turkish Association of Agricultural Machinery & Equipment Manufacturers (TARMAKBIR), Machine Manufacturers Association (MIB), Turkish Construction Equipment Distributors’ and Manufacturers’ Association (IMDER) and Materials Handling, Storage & Industrial Equipment Association (ISDER) under the chairmanship of the General Secretary of the Turkish Machinery Federation (MAKFED), Zühtü Bakır representing machinery industry visited Ahmet Erdal, General Manager of Protection of Consumer and Market Surveillance on 21 August. The Ministry exchanged views on sectoral cooperation and working principles. In order to contribute to the ministry's work in consultation, it was decided to establish a commission with the member institutions of MAKFED to form a report on the sectoral characteristics of the legislation. TIME TO PREVENT UNFAIR COMPETITION The Post purchase Services Regulation published in the official ga-
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zette dated 13.06.2014 and numbered 29029 on the basis of the Act No. 6502 dated 7.11.2013 on the Consumer Protection Act covers "consumers" in principle. In other words, legal entities such as industrialists, merchants, tradesmen, public institutions, schools, hospitals, foundations, associations, building management and farmers outside the consumer described in the law are also excluded from these legislation implementations. Therefore, the post purchase transactions of the products bought by the parties concerned are evaluated only within the general principles of the Turkish Commercial Law and the Debt Law. The absence of a specific legal regime in the legislation leads to the existence of importers who do not have sufficient infrastructure for
post purchase services at the same time, while parties sometimes cause some problems in the context of post purchase services. This situation is the reason for the unfair competition against the company, as well as end-users are victimized. In the "Machinery Industry Sector Strategy Document and Action Plan for 2017-2020" published in the official gazette dated 24.03.2017 dated 24.03.2017, the provision of "Working on the implementation of after sales services / guarantee conditions for industrial goods" was put into effect. In this context, the Ministry of Science, Industry and Technology has been working on the action under the responsibility of the Ministry of Customs and Trade, which has experience and background in this field.
BILSEM ROBOT TEAM OVERCOMES OBSTACLES The BILSEM Robot Team, formed under the roof of the Antalya Science and Art Center connected to the Ministry of National Education, achieved great success in Robot Challenge 2017, held in Beijing, on 4-6 August. The BILSEM Robot Team, the only team participating in the competition from Turkey, for the handicapped, have returned from Beijing with three rewarded projects.
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fe Inan, Buket Naz Zeren and Eren Ekrem Kalançcı, who continue their education life in Antalya BİLSEM, have returned with the award from Robot Challenge 2017 held in Beijing with the three important innovations that will make the life of disabled individuals easier. Robot Challenge in 2017, BILSEM Robot Team competed against 96 projects coming from other countries in the category of Free Style, and they paid attention with the projects that produced solutions for the difficulties of the disabled people. The three students in the BILSEM Robot Team, the only team participating in the competition from Turkey, carried out a joint project by imagining similar projects and each participated in three separate projects aimed at facilitating the life of the disabled individuals, the three students braced up one from each other and the other from their instructors, Orhan Çevik and Hatice Küpeli. The BILSEM Robot Team has won the first place with the project 'Control of Objects with Thought Strength-Intelligent House', the second place with the project 'Controlling the Thought with the Vehicle' and the fourth place with the project 'Remote Hand' project. The project, which was first place in the category of Free Style, was dreamed of Eren Ekrem Kallıkçı, 16 years old. This project, which enables individuals
with high physical disabilities, such as spinal cord paralysis, to use some items in their home environment without the need of anyone, opens the way to control mind power and objects while living with a special title developed by Eren and his friends. VEHICLE CONTROL WITH BRAIN SIGNALS The second project in the Free Style category is the dream of Efe İnan, who is 12 years old. Efe İnan said, "The cap we are wearing is receiving signals from certain neurons and moving the vehicle forward, backward, right and left. There are six engines and a battery in the car. With this project, especially those with spinal cord paralysis, will be able to continue their lives without the need for others. We can customize the title according to the focus of the wearer. For this reason, we can say that our invention is personal."
WE WILL NOT STAY JUST IN CLASS The 16-year-old Buket Naz Zeren's project will make a big positive contribution to the lives of physically handicapped students who are struggling to comply with active education programs in the class. Zeren decided to develop this project when she saw that some of her disabled students friends in her school could not get up to the blackboard: Although Zeren's project attracted a great deal of attention in the race, she finished fourth in the Free Style category due to technical difficulties experienced during the presentation. Antalya BILSEM School Principal Arif Aydeniz said that all of the 439 students had special talents, while the talents changed according to the fields. This year, especially in the field of robots and software is a big breakthrough that they underline.
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in english
NEW PERIOD IN MANUFACTURING "The Law on Making Changes in Some Laws and Decree Laws for the Promotion of Industry and Production Support" which is known as the "Production Reform Package" in the public sector and which took effect in July, is considered as an important step towards strengthening the Turkish manufacturing industry. industrial enterprises shall be registered in the industrial register which will be held in the Ministry of Science, Industry and Technology and will preregister with the industrial register before starting the production activity.
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he draft Law on the Amendment of Some Laws and Decree Laws for the Promotion of Industry and Production Supporting Industry and Production by the Ministry of Science, Industry and Technology was published in the Official Gazette at the beginning of July. It has been frequently discussed in public due to "arrangements for the opening of olive groves and fields.” In the 109th edition of the Moment Expo, it was mentioned that significant changes were made in the framework of the Law to provide price advantage up to 15% in favor of the tenderers who offered domestic goods in the public procurements where a large part of the machines were included in the practice. We have conveyed the opinions of MAİB and The Turkish Machinery Chairman Adnan Dalgakıran regarding the contribution of the Law to the Turkish machinery manufacturing industries. However,
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the law is important in terms of including many arrangements in order to support the development and production of Turkish manufacturing industries. The first thing that comes to the forefront in the aim of the law is the establishment of new industrial zones and technology transfer offices, the increase of the activities of the universities in R&D activities, the industrial registry regimes, tax and fee exemptions, As a free land plot attract attention. WEEKEND WORK LICENSE REMOVED Among the changes introduced by the law was the abolition of the obligation to receive weekend working permits from municipalities in order to enable industrial enterprises to work on weekly holidays. Within the scope of the industrial definition in the Industrial Registration Act, information technology and software producing enterprises were also included. Accordingly,
TECHNOLOGY TRANSFER OFFICES According to the law, higher education institutions will be able to establish a technology transfer office in the capital company status in order to cooperate with the public and private sector in relation to R & D and innovation, to create information, to protect and implement the inventions made under the intellectual property. It will be possible to give a paid vacation for one year to the faculty members working in the state universities for six years and to work in the field of R & D related to their fields both in Turkey and abroad. However, the law also envisages the establishment of the Higher Education Quality Council, consisting of 13 members with administrative and financial autonomy, public entities and special budget. Accordingly, the Board will carry out internal and external quality assurance, accreditation processes and authorization processes for independent external evaluation institutions, which will make evaluations according to national and international quality standards regarding the quality levels of education and research activities and administrative services of higher education institutions.
NEW INDUSTRIAL ZONES The Law, which also redefines the purpose of the Industrial Zones Law, includes the formation of the Industrial Zones Coordination Board, the establishment of the industrial zones, the declaration of the industrial zones, the investment permit process, incentive measures and the duties and powers of the managing company. Accordingly, the Ministry of Science, Industry and Technology may propose the establishment of industrial zones by requesting the institutions or organizations or the managing company to apply for the application in person. The land in the declared areas will be expropriated and registered in the name of the Treasury, and the Ministry of Finance will allocate it to the Ministry for use as an industrial region. Local and foreign real and legal entities wishing to invest in industrial areas shall be preliminary grounded on the application to the Ministry. KOSGEB IS READY TO PAY IN ADVANCE Another important innovation of the 'Law' concerning industrialists is that the Small and Medium Enterprises Development Organization (KOSGEB) decides that it can make early payments in line with the procedures and principles set for the support to the enterprises. On the other hand, while the amounts of the contributions deposited to the KOSGEB accounts are taken over the annual net income, the supporting documents regarding the determination of the amounts paid shall be sent to the KOSGEB by the relevant institutions and organizations. Those who work in merged entities or who leave for reasons such as resignation, retirement, termination of work contract and death will not be subpoenaed to those who have not paid by their employer but paid by their organization.
dustrial Zones (OSB) location election, the decision of the committee, the decision of the institution and the voting union can not be provided, the Ministry of Science, Industry and Technology will give its final decision. In the case of possession of the Treasury or public institutions and organizations in the field of Organized Industrial Zones, these shall be handed over free of charge under the Law on Investment and Employment Promotion. In other provinces, they will be sold to Organized Industrial Zones in installments or installments based on their core values. The Ministry of Environment and Urbanization or the relevant municipality will make the planning of areas outside the boundaries of OSB within one year at the latest. The legal entities of Organized Industrial Zones that do not pay a fee for all parcels that do not open a detection and registration case for all parcels that start their expropriation transactions within six months from the date of establishment and who can not be reached within two years from the date of establishment will be able to be abandoned by starting the liquidation process. Another important change that closely relates to Organized Industrial Zones (OSB) is that OSB can be given credits for projects that are necessary for their activities and that are deemed appropriate by the ministry. The most important innovation of the law related to OSB was to allow the allocation of the parcels in OSB in the provinces and districts determined by the decision of the Council of Ministers, in whole or in part, free of
charge. According to this, unallocated parcels in the OSB using the Ministry loan can be allocated totally or partially free of charge to real or legal entities that are engaged in investments for employment of at least 10 persons. In this case, the value of the allocated parcel will be deducted from the loan repayment given to the OSB by the Ministry. Payments will be stopped for the parcel that has been allocated to the real and legal persons before the date on which the regulation enters into force, and the remaining amount will be deducted from the loan repayment given to the OSB by the Ministry. CHANGES IN OCCUPATIONAL HEALTH AND SAFETY According to the law, there are less than 50 employees in the workplaces that are included in the less dangerous class; occupational health and safety services (excluding entry to work, periodic examinations and examinations) may be carried out by employers or employer representatives. Workplaces with fewer than 50 employees and those in less dangerous classes will be able to receive service from family physicians and public health service providers, such as workplaces with fewer than 10 employees; will have the authority to issue regulations. The provisions of the Occupational Health and Safety Law, "occupational health and safety services" and "support for occupational health and safety services" shall also enter into force on 1 July 2020 instead of 1 July 2017.
NEW STRUCTURE FOR OSB In the day that the law is put into force, the decision of the Organized In-
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in english
AHK TURKEY PUT SUPPORT BEHIND THE IDEAS German-Turkish Chamber of Commerce and Industry (AHK Turkey), which has more than 800 members in every sector of trade in Germany and Turkey, is one of the successful examples of deep-rooted cooperation between the two countries. AHK Turkey represents the commercial interests of German companies in Turkey while also supporting initiatives of Turkish companies in Germany. We asked the establishment of the AHK Turkey and its functioning to Jan Nรถther, the General Secretary of the AHK Turkey and Board Member.
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he rules of trade are also being rewritten in today's world, and there are transformation and integration in all areas of economics, politics, culture, and technologies. Along with globalization, the concept of cooperation in the business world becomes even more important as commercial walls that broken, increase competition day by day. To be able to adapt to transformation dynamics, strategic partnerships are essential to integrate with the world economy. The industry and trade chambers that bring compa-
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nies together under the same roof in the direction of common interests are one of the best examples of cooperation. The chambers of commerce and industry, which enable businesses to act together in the country and increase their competitiveness, also play a major role in the participation of local trade in global economic activity by operating in foreign countries. German-Turkish Chamber of Commerce and Industry (AHK Turkey) which brings together German and Turkish companies that have been in close cooperation for 160 years, is strengthening the economic relati-
ons of the two countries each day. AHK Turkey provides communication support to trade representatives and also protects the interests of the sides, who are able to successfully carry out their work in Turkey or Germany and have a great deal of assistance for success in the market. Jan-Nรถther, the General Secretary of German-Turkish Chamber of Commerce and Industry and Board Member, answered our questions in many different topics, from the founding story of AHK Turkey to the support it provided to its members and the commercial relations between Germany and Turkey. "German and Turkish companies have been working closely for 160 years. More than 90 enterprises of Turkish origin in Germany, 7.000 German investments in Turkey characterizes this unique cooperation." said Jan-Nรถther. What is the point of trade chambers in terms of global economy? The chambers of commerce set up global business networks, bringing together different businesses on the same platforms. It also discusses issues of common interest for the business world with politics and other related and affiliated instituti-
ons. When evaluated in the light of the global market, the chambers of commerce play an important role in uncovering business potentials as well as in bringing restrictions to this area. In this context, can we get information about the establishment and activity area of German-Turkish Chamber of Commerce and Industry (AHK Turkey)? The German-Turkish Chamber of Commerce and Industry is an important part of the global AHK (German Foreign Trade Chamber) network, with more than 130 representatives in 90 countries. AHK Turkey, which has more than 800 members from every sector in Germany and Turkey, represents the commercial interests of German companies over 20 years in Turkey. The organization also supports initiatives of Turkish companies in Germany. The German-Turkish Chamber of Commerce and Industry is an ideal partner, offering solutions for companies looking for different distribution channels for their products, a joint venture looking for business partners or affiliates affiliated to the existing company, but also looking for more business in different countries. What are the current issues between the Turkish-German business world? Does the TurkishGerman business world meet the potential of the two countries? German and Turkish companies have been working closely for 160 years. There is no doubt that these long-standing relationships were the basis of the unshakable cooperation between the two countries. More than 90 enterprises of Turkish origin in Germany, 7.000 German investments in Turkey characterizes this unique cooperation. German companies are active in all sectors of the Turkish market some like au-
tomotive, energy, machinery, chemical products, medical products, hotels and consumption, consulting, services and textiles. Thanks to the opportunities offered by Germany and Turkey market, German-Turkish Chamber of Commerce and Industry (AHK Turkey) is always working extremely motivously. What types of services does AHK Turkey provide to Turkish producers who want to open up to the German market? What is criteria of the services? The range of services we offer extends from the identification of business partners to the creation of new subsidiaries in Germany or to alternative legal formations. The German-Turkish Chamber of Commerce and Industry collaborate with various German institutions such as the Ministry of Economy and Energy, the German Chamber of Commerce and Investment, the German Chamber of Commerce, that reach the individual partners of the private sector from the business network. As I said before, AHK Turkey not only positions itself as a service provider, but as a solution partner. In other words, AHK Turkey transforms the ideas of Turkish companies into common projects. Are there any sectors of particular importance to AHK Turkey? In which sectors can Turkish producers compete better in the German market? AHK Turkey has established various industrial working groups in the fields of automotive, energy, consumer and supply industry. Key initiatives such as Digitization / Industry 4.0 show the future success parameters of enterprises in Turkey. At present Turkish producers are very active and competitive in the German market. The main sectors include hospitality, agricultural products, textiles, machine and service. The greatest challenge for Turkey
Jan NĂ–THER The General Secretary of the AHK Turkey and Board Member
to overcome in the German market can be described as the ability to respond quickly to changing consumer needs in order to create sustainable procurement and service networks. From what point of view is it easy or difficult to do business with Germany? How can the AHK Turkey be able to cooperate with the Turkish machinery sector before exporting to Germany? What should be the main headlines that producers should pay attention to when selling products / services to Germany? German companies operate in a global marketplace where continuous efforts are needed for new ideas, initiatives or commercial engagements. The German and Turkish business world is similar in terms of the formation of small and mediumsized companies in the country's economy. If the product meets the product range or supply chain and financial competencies meet reliability, German companies will always be willing to meet with their Turkish counterparts to explore new business projects. It is a great pleasure for us as the GermanTurkish Chamber of Commerce and Industry to help to identify possible partners of the Turkish corporate sector.
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in english
TURKISH MACHINERY TURN INTO AN OPPORTUNITY THE RECESSION OF THE GLOBAL ECONOMY The Turkish machinery manufacturing industry turn into an opportunity the recession of the global economy. The sector double the export seven times and draw away its competitors. TOBB Machinery and Technical Assembly prepared 'The Developments in Basic Indicators and Developments in the First Half of 2017' report and results pleased the sector.
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espite the economic and political problems in the Turkey and abroad, the instability in export markets, the loss of commodity markets and the increasingly protective politics around the world, the Turkish machinery sector continues to perform well within its manufacturing industry. According to 'The Developments in Basic Indicators and Developments in the First Half of
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2017' report that prepared by Advisor of Turkish Union of Chambers and Exchange Commodities (TOBB) Machinery and Technical Assembly, Doç. Dr. Ruhi Gßrdal, SITC grouping, Turkish machinery manufacturing industry exports have been around 10 billion dollars each year in the last four years. The exports of the year 2016 were $ 9.9 billion. In the same period, imports were recorded as approximately 27 billion dollars, while the ratio of imports to
exports remained at 36.7 percent. In the first six months of 2017, exports increased by 2.9 percent compared to the previous year, reaching $ 5.3 billion. In the same period, imports declined by 12 percent compared to the previous year, reaching 12 billion dollars. The import coverage ratio of exports reached to 44.1 percent in 2017 from 37.8 percent in the first six months of 2016. The machinery manufacturing industry, which has set its sights on the importance of domestic markets as well as foreign markets for the industry, continued to focus its activities on domestic and foreign markets. Although a policy focused on domestic market operations was followed, the machinery industry's first half domestic market performance in 2017 was observed to be below the performance of the foreign market because machinery and equipment investments in the first half of the year declined compared to the previous year. In the first half of the year, the investment environment and conditions were not very suitable for machinery and equipment investments, but despite the relatively weak performance of the domestic market,
the machinery industry continued to remain above the manufacturing industry production in the first half of the year, thanks to the performance of foreign markets. So the industry caught up with a production increase focused on foreign markets in the first half of the year. The employment growth of the machinery industry stagnated in the first half of the year. However, given the fact that manufacturing industry employment declined in the first half of the year, machine industry employment has been a prosperous success. While employment remained stable, gross wages in machinery industry continued to increase. The increase in gross wages continued to be above the average of the manufacturing industry. When evaluated according to the producer prices, the increase in the demand for machinery in the country and the increases in the machine producer prices were both limited and lower than the manufacturing industry average. While investments in the machinery industry have remained limited over the years, the investments in exports of machinery industry supported the increase in exports. The main factor that adversely affected the investments of the machinery industry was the lack of demand in the domestic market.
DEVELOPMENTS IN PRODUCTION Since the beginning of 2010, the average annual production index of machinery manufacturing industry is higher than the average of manufacturing industry. In the second half of 2016, due to the negative politicalpolitical developments experienced in the country, the total production of the machinery manufacturing industry and the manufacturing industry experienced a significant decrease compared to the previous periods. The positive development in the sector output in the last quarter is the end result, the production index has started to increase again. In the first quarter of 2017, the first quarter of the value of the sector's production index declined to 142.1 with the increase in production in February and March. The machinery manufacturing industry index, which fell to 155 in April compare in March, reached its highest level since 2010 with 174.8 in May. According to the report, the production of the machinery manufacturing industry has entered an upward trend in the second quarter of 2017 RATE OF CAPACITY UTILIZATION Machine manufacturing industry rate of capacity utilization (CUR) ranged from 72 percent to 78 per-
cent in 2016, down to 72.8 percent in November, the second lowest level in recent years, due to the negative political and political developments experienced in the second half of the year. In the first quarter of 2017, there was an unstable period in terms of CUR, whereas in the second quarter CUR of June was realized as 80 percent. The upward trend observed in CUR continued in July, reaching 81.2. This data shows that the machinery manufacturing industry has achieved significant growth in production in the second quarter of 2017. EMPLOYMENT FIGURES Machinery manufacturing industry employment index value and rate of increase have been higher than manufacturing industry employment index since the second quarter of 2010. The index value in the second quarter of 2016 reached its highest value since 2007 with 141.8. The employment index value of the machinery manufacturing industry declined in the third quarter of 2016 (141.6) and the fourth quarter (141.1). In the same period, the decline in manufacturing industry employment index value was faster. This trend continued in the first quarter of 2017 and the employment index for the machinery manufacturing industry dropped to 140.9, while the
INCREASE IN ECONOMIC GROWTH The year 2016 was a period in which the GDP growth rate slowed down and the third quarter experienced a recession. While the annual GDP growth rate remained at 2.9 percent, the growth rate of the manufacturing industry was recorded as 3.9 percent. So 2016 was a period of significant slowdown in economic growth. In the first quarter of 2017, the growth rates of GDP and manufacturing industry increased significantly by 5 percent and 5.1 percent, respectively, compared to the same period of the previous year.
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rate for the manufacturing industry was 117.4. The employment index indicates that the machinery manufacturing industry is one of the sectors that contributes significantly to the employment problem. STRENGTH IN DOMESTIC DEMAND As in the production index, the sector's domestic turnover index values are higher than the manufacturing industry's domestic turnover index values. The turnover index of the sector is seen to show a significant increase in the last quarter of 2016. The index, which declined to 211.8 in the first month of 2017, started to increase again in February and reached 307 in March. The index value, which declined to 291.8 in April, rose again to 313.9 in May. The index values indicate that the slowdown in domestic demand in the sector in the first half of 2017 has entered an upward trend in the second quarter. TURKEY'S SHARE IN THE WORLD FOREIGN TRADE Exports of world machinery manufacturing industry increased from 1.47 trillion dollars in 2013 to 1.62 trillion dollars in 2014, and 1.5 trillion dollars in 2015. In 2016, 88.5 percent of the world's exports of machinery manufacturing industry is
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completed according to the level of $ 1.34 trillion. Considering the country data to be added, the current data shows that there is no significant change in world exports in 2016 compared to the previous year. There are differences between world imports and export data, these differences are due to differences in exporting and importing countries, free zones and so on. Turkey's machinery manufacturing industry share of world exports in 2013, 0.67; in 2014 and 2015 in the level of 0.69 was realized. In 2016, the share of the sector in world exports was recorded as 0.74. However, it is possible that this share will fall to the level of 2015 with the addition of country data that are not currently included in the world foreign trade data. The share of imports of the Turkish machinery manufacturing industry in world imports is 1.66 percent in 2015. It is seen that this ratio is 2,07 in 2016. As it is in exports, it is possible that the share of Turkey will approach the value of 1.6 in 2015 after adding missing data to world imports. MACHINE MANUFACTURING INDUSTRIAL INVESTMENT INCENTIVE CERTIFICATES Machinery manufacturing industry, while the other investment group
with the first order of TL 2.08 billion in the distribution of investment incentive certificates organized in the years of 2015 and 2016 received TL 2,05 billion with the second rank and TL 2,04 billion in complex new investments received the third rank. In the two years total, investments were evenly distributed according to species. In the first five months of 2017, expense investments amounted to 975 million TL, while new investments amounted to 517 million TL. In the first five months of 2017, the investment incentive certificate of the machinery manufacturing industry was prepared at the level of 60% of the year 2016. Machinery manufacturing industry investments are directed towards developed regions in all countries depending on production factors, qualified human capital, and supply sectors that supply inputs. The fact that the investment incentive certificates issued in 2015 and 2016 are in the first three developed regions with more than 90% of the fixed investment amounts according to the regions clearly shows that this tendency also applies in our country. This trend did not change in the first five months of 2017. Approximately 1.2 billion TL (69.9 percent) investment incentive certificates were issued for the domestic and foreign institutions in the first region while this amount remained at 247.1 million TL (15.9 percent) for the second region. For the other four regions, the amount of the investment incentive certificate remained at a very low level of TL 219.6 million. It is seen that the distribution of investment incentive certificates directed to machinery manufacturing industry by employment is higher in the developed regions as it is in fixed capital investments. 60.6 percent of the employment foreseen in investment incentive certificates held in the first five months of 2017 is in the first region and 20.5 percent in the second region.
THE PEAK IN EXPORT IMPORT BALANCE The improvement in the performance of the Turkish machinery manufacturing sector in 2017 is ongoing. According to the figures of the first half, growth, industrial production index and export ratios showed encouraging developments while the ratio of export to imports reached the highest value of the last 14 years.
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ue to the contraction in the third quarter of last year, the GDP growth rate of 2016 was only 2.9 percent and the growth rate of manufacturing industries was 3.9 percent. In the first quarter of 2017, the growth rates of GDP and manufacturing industries increased significantly by 5 percent and 5.1 percent, respectively, compared to the same period of the previous year, while GDP increased by 5.1 percent in the second quarter of the year compared to the same quarter of the previous year. When the activities of GDP are examined; In the second quarter of 2017, while the industrial sector increased by 6.3 percent in volume value, which was chained according to the same quarter of the previous year, industrial production in July also increased by 2.3 percent compared to the previous month. When the sub-sectors of the season and calendar effect-free industrial sector (2010 = 100 base year) are examined, the manufacturing industry sector index is 2.2 percent in July, the electricity, gas, steam and air conditioning production and distribution sector index increased by 4.8 percent. Since the base year of 2010, the average annual production index of machinery manufacturing industry is also higher than the average of manufacturing in-
dustry. The index, which stood at 142.1 in the first quarter of 2017, reached a record level of 174.8 in May. IMPORTS IS DECREASING, WHILE EXPORTS RISING Another indication of the growth in machinery manufacturing industries was that in July the capacity utilization rate, which was the record level of 81.2 in April 2015, was reached again. Meanwhile, the Machinery Manufacturing Industry Employment Index maintained its position for the last one year, reaching 140.9 in the first quarter of this year, and for the manufacturing industry this value decreased to 117.4. According to the SITC
group, Turkey's machinery manufacturing exports are around $ 10 billion in the last four years. The exports of the year 2016 amounted to 9.9 billion dollars, while the imports amounted to 27 billion dollars in the same period, and the import coverage ratio of exports remained at 36.7 percent. However, in the first seven months of this year, imports declined significantly compared to the previous year and remained at $ 15.1 billion. In this period, exports reached 7.5 billion and the export coverage ratio reached to 49.8 percent. This value is important in that it shows that the ratio of exports to imports has almost doubled in the last 14 years.
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in english EXPORT FIGURES IN RESPECT TO THE ACTIVITY FIELD OF THE MACHINERY AND ACCESSORIES
Source: All Exporter Unions Database JANUARY 1-JULY 31, 2016
PRODUCT GROUP
VALUE (Mil $)
JANUARY 1-JULY 31, 2017
$/kg
QUANTITY (1000 Tonnes)
VALUE (Mil $)
(%) CHANGE
$/kg
QUANTITY
VALUE
ENGINES, ACCESSORIES AND SPARE PARTS
73,5
1.181
16,1
84,8
1.226
14,5
15,4
3,8
INDUSTRIAL AIR CONDITIONERS AND COOLING MACHINES
282,5
1.156
4,1
289
1.151
4
2,3
-0,5
OTHER INDUSTRIAL WASHING AND DRYING MACHINES
257,7
724,5
2,8
270
734,9
2,7
4,8
1,4
OTHER MACHINES
90,8
620
6,8
102,8
670,4
6,5
13,2
8,1
CONSTRUCTION AND MINING MACHINES
131,2
506
3,9
158,4
526,3
3,3
20,8
4
PUMPS AND COMPRESSORS
58,4
397,5
6,8
61
442,7
7,3
4,4
11,4
AGRICULTURE AND FORESTRY MACHINES
77,4
373,2
4,8
86,7
387,3
4,5
12
3,8
MACHINE TOOLS
55,6
381,5
6,9
57,1
382,2
6,7
2,7
0,2
TURBIN, TURBOJETS, TURBO PROPELLERS
8,1
207,7
25,5
9,4
325,7
34,4
16,3
56,8
TEXTILE AND CLOTHING MACHINES AND ACCESSORIES
45,5
250,5
5,5
49
283,2
5,8
7,5
13,0
VALVES
29,4
245,5
8,3
30,9
278,8
9
4,9
13,6
FOOD INDUSTRY MACHINES, ACCESSORIES AND SPARE PARTS
40,9
229,5
5,6
52,9
267,1
5
29,1
16,4
32
226,9
7,1
32,7
248,8
7,6
2,4
9,6
WEAPONS AND AMMUNITION FOR THE DEFENSE INDUSTRY
24,9
359,9
14,4
14
227,8
16,2
-43,5
-36,7
ROLLER AND FOUNDRY MACHINES, MOULDS
22,5
161,3
7,1
24
185,1
7,7
6,3
14,7
INDUSTRIAL HEATERS AND COOKERS
20,7
150,4
7,3
25,4
177,7
7
22,8
18,2
LOAD LIFTING, CARRYING AND STOWING MACHINES
29,4
132,2
4,5
37,1
152,5
4,1
26,4
15,3
PACKAGING MACHINES, ACCESSORIES AND SPARE PARTS
4,3
82,5
19
4,8
93,2
19,1
12,3
12,8
GUM, PLASTIC, RUBBER PROCESSING MACHINES
7,8
86,1
10,9
8,3
88,7
10,7
5,4
3,1
OFFICE MACHINES
1,8
78,2
41,7
2,2
86
37,5
22,4
10
BEARINGS
6,8
75,5
11
6,8
75,1
11
-0,6
-0,6
5
36,2
7,3
7,8
49,3
6,3
57
36
1,1
6,8
6
1,7
9
5,1
56,6
33,1
1.308
7.671
5,9
1.418
8.070
5,7
8,4
5,2
REACTORS AND BOILERS
PAPER MANUFACTURING AND TYPOGRAPHY MACHINES LEATHER PROCESSING AND MANUFACTURING MACHINES AND ACCESSORIES TOTAL
128
QUANTITY (1000 Tonnes)