MACHINERY EXPORTERS UNION MONTHLY MAGAZINE
MACHINERY EXPORT REACHED TO 4.3 BILLION DOLLARS IN THE FIRST QUARTER
ISSUE: 131
TURKISH MACHINERY WAS AT HANNOVER MESSE FAIR FOR THE 10TH TIMES
MOMENT IN ENGLISH
MACHINERY EXPORT REACHED TO 4.3 BILLION DOLLARS IN THE FIRST QUARTER MACHINERY INDUSTRY REALIZED EXPORT FOR 1.6 BILLION DOLLARS IN MARCH INCREASED ITS TOTAL EXPORT TO 4.3 BILLION DOLLARS IN THE FIRST QUARTER OF THE YEAR. STATING THAT THEY FOCUSED ON THEIR INTERNATIONAL CONTACTS TO COMPENSATE THE NEGATIVE IMPACTS OF THE ECONOMICAL UNCERTAINTIES IN EU COUNTRIES WITH WHICH MORE THAN HALF OF THE MACHINERY EXPORT HAS BEEN REALIZED GENERALLY ON OUR FOREIGN TRADE, KUTLU KARAVELIOĞLU, THE CHAIRPERSON OF MACHINERY EXPORTERS’ ASSOCIATION (MAİB) EXPRESSED THAT THEY AIMED TO REACH TO EXPORT INCREASE RATE WHICH IS APPROXIMATELY 18 PERCENT IN USA AND ENGLAND IN ALL ADVANCED INDUSTRIAL COUNTRIES.
M
achinery industry increased its total export value in the first quarter of the year even though the slowdown shown up in the industrial manufacturing in Germany which is the biggest export market of Turkey. Drawing attention to that the increase by 17 percent in the machinery amount sold to abroad reflect to the export cost in the desired rate, Kutlu Karavelioğlu, the Chairperson of MAİB Board of Directors said that: “Impact of two major uncertainties which will shape the direction of world trade is deepening swiftly. Ending of slowdown of the trade wars between USAChina and EU-England and extension of the negotiations in contractual Brexit subjects cause a slowdown on the expectations towards world economy.” and he pointed out the increased pressure on the investment goods because of the shrinkage of the growth prediction for global economy to 2.6 percent. Emphasizing that the recession in domestic industrial manufacturing, capacity • 104
usage rates and trust indexes is turning into horizontal direction has been observed, Karavelioğlu expressed that: “We believe that the country agenda will be directed to the economy again.” “MACHINERY PRICES ARE RECESSING” Drawing attention that euro has lost value against dollar significantly and our the decrease in export carried
out to Germany, which is our main market to 11 percent limit the increase intended in the machinery export, Karavelioğlu stated that the machinery manufacturers have to decrease prices to fill their techno-economical capacities in a global market shrinking gradually and he said: “Turkish machinery manufacturers who have become a strong actors in the international competition are
affected by this situation.” Stating that tonnage increase in the exported machineries is 43 percent in engineering and construction machinery, 38 percent in agricultural machinery and 32 percent in engines and generators; however the increase in total machinery export income cannot exceed 4.4 percent, Karavelioğlu said that: “Tonnage of the machinery which we exported in the first quarter of the year increased by 17 percent and reached to 750 thousands of tones. There are some advantages of realizing competitive prices in the products of which added value is high; however, another important reason of the recession of the average kilogram price which was 6,3 at first to 5,6 dollars gradually in the last five quarters is the shrinkage in the domestic market. Maintaining the export increase even with the amount impact seems to be only way in short term to carry out the activities of our sector in a healthy way. Our whole focus will be on taking more shares out of the markets which are growing during this term.”
TURKISH MACHINERY SECTOR LAUNCHED FOREIGN MARKET STRATEGY STUDIES
T
he study for creating the foreign trade strategy of the sector with the supports of Machinery Exporters’ Association and the Ministry of Commerce was started in 20 March with the participation of the senior managers of member associations of Turkish Machinery Federation. Target market and rival country of Turkish machinery industry will be analyzed and after the international market strategy of Turkish machinery industry is determined in the study which will last 15 weeks by PwC experienced in strategy studies and the report with the title of “International Market Strategy of Turkish Machinery Industry” will be provided to the usage of all stakeholders and public. 105 • APRIL 2019
MOMENT IN ENGLISH
TURKISH MACHINERY WAS AT HANNOVER MESSE FAIR FOR THE 10TH TIMES TURKISH MACHINERY EXHIBITED THE MANUFACTURING CAPACITY AND QUALITY OF TURKISH MACHINERY INDUSTRY TO THE GLOBAL VISITORS WITH ITS 170 TURKISH FIRMS IN AT HANNOVER MESSE FAIR WHERE IT PARTICIPATED IN FOR THE 10TH TIMES. TURKISH MACHINERY WAS THE CENTER OF ATTENTION WITH ITS ADVERTISING CAMPAIGN WHICH STARTS WITH THE AIRPORT OF TURKISH MACHINERY AND GOES THROUGH THE FAIR ZONE AND CITY CENTER.
H
annover Messe which is one of the leading industrial fairs in the world was organized in Hannover of Germany for the 72nd time between 1 and 5 April. While the partner country was Sweden in the fair where 6,500 firms from 70 countries participated in this year, 170 firms from Turkey took their places in the organization. While Turkish Machinery became the center of attention in fair thanks to the advertisements and advertising campaigns, the advertisements prepared with the slogan of “Making the world work” were placed on airport, advertising towers in the fair, buses, taxi stops, billboards, fair maps and fair catalogs as well as the towers and tramways in the city. Turkish Machinery provided information to the 215 thousands of people visiting the fair about the advantages of the Turkish machinery industry with its advertising activities it realized. REPRESENTATIVES OF GERMAN MACHINERY INDUSTRY NEGOTIATED Machinery Exporters’ Association (MAİB) and Kutlu • 106
Karavelioğlu, the Chairperson of the Board of Directors, Sevda Kayhan Yılmaz, the Deputy Chairperson of Board of Directors and Ahmet Özkayan, the Member of the Board of Directors on
behalf of Turkish Machinery participated in the organization which opened its doors with the theme of “Industrial Intelligence” in this year. In addition, Ahmet Yılmaz, the Germany Consultant of
Turkish Machinery and MAİB Machinery Branch personnel took their places in the fair board. Gökhan Sezer Türktan, the Secretary General of Turkish Pump and Valve Manufacturers Association
(POMSAD), Artun Bölgen, the Secretary General of Association of Turkish Machine Manufacturers (MİB), Abdullah Parlar, the Secretary General of Turkish Fluid Power Association (AKDER) which are the member associations of Turkish Machinery Federation (MAKFED) provided fair visitors with information about the industry and member firms. Turkish Machinery which participated in the Hannover Messe with two different stands, one of which was at 21th Hall and other was in Pump Plaza brought numerous Turkish firms and the establishment representatives with whom cooperation was already established in the cocktail party in the second day of the fair. North RhineWestphalia State representatives of German Machinery Federation (VDMA), Saxony Economic Development Agency authorities, Banu Malaman, Hannovar Consul General, Nilüfer Sandallı, the Commercial Attaché and Istanbul Chamber of Commerce authorities who organized Turkish National Participation, German press companies and representatives of sectoral magazines took their places among the guests. Sevda Kayhan Yılmaz, the Deputy Chairperson of Board of Directors made a presentation about Turkish machinery industry in “Get Together” event carried out in cooperation with VDMA on 3 April. Bekir Koca, Ermaksan R&D Director invited to the fair by MAİB shared the updated applications in his presentation with the title of “Industry 4.0 in Metal Processing Machineries” in the event. On the other hand, in the negotiations carried out with
VEMAS board, a plan was realized for a board consisting of German firms which are the members of VEMAS to visit Turkey and Turkish firms and carry out business cooperation negotiations in 2019. Turkish Machinery board which realized various negotiations with Saxony and Dortmund Economic Development Agencies, Deutsche Messe AG and German press representatives provided comprehensive information about the current situation of Turkish machinery industry and our commercial relations with Germany and other countries and discussed the sustainable business cooperation opportunities. TURKEY RANKED AS THE FOURTH IN PARTICIPATION NUMBER Turkey with its 170 machinery
manufacturers exhibiting their products and services in Hannover Messe which is considered as the most important industrial fair in the world raked as the fourth biggest participant following Germany, USA and China; and Turkish firms stated that they participated in the fair to meet with new costumers, know their rivals and increase their competitiveness capacity and they emphasized that they were proud of the advertising works of Turkish Machinery. MAIN THEME IS INDUSTRIAL INTELLIGENCE Artificial intelligence in industry and robotics, potentials of 5G technology which is under development for industrial applications, future of the digitalization are the most important
titles of the Hannover Messe fair. The fair where 1400 events and 80 forums were organized with latest technological products hosted for less visitors compared to the previous years; however, it maintained the position of being the most important fair as a prestigious fair where the latest technologies are exhibited. During the fair, it was seen that the interest towards the halls where especially 5G, automation, smart factory systems were exhibited was significantly high and all visitors and Turkish firms had the chance to examine such applications in the fair where numerous applications regarding machine learning, digital bond between machinery and human, smart factories where robots organize themselves for human were exhibited. 107 • APRIL 2019
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SEGMENT LIFTING THE LOAD OF THE INDUSTRY INDUSTRIAL CRANES THE CRANE IS THE PRIMARY MACHINERY OF IMPORTANT MACHINERIES COMFORTING THE LIFE OF HUMAN AND CONTRIBUTING TO THE INDUSTRIAL DEVELOPMENT. SINCE VAST AMOUNT OF TRANSFER IS REQUIRED THROUGH THE INPUT AND OUTPUT LINES OF RAW MATERIALS IN PRODUCTION PROCESSES OF FIRMS CARRYING OUT MASS PRODUCTION, CRANES IN DIFFERENT STRENGTHS AND VOLUMES ARE REQUIRED. TURKEY RANKS AS THE 21TH IN WORLD LIST WITH ITS EXPORT VOLUME FOR 110 MILLIN DOLLARS IN 2018 WITHIN THE INDUSTRIAL ELECTRIC CRANE SEGMENT WHICH CONSTITUTES A TRADE VOLUME REACHING TO 30 BILLION DOLLARS IN A GLOBAL SCALE.
C
ranes are the machineries which enable us to carry out lifting a heavy or gabarited material from one place to another with vertical or horizontal movements with constant or intermittent operations within a manufacturing
• 108
process in open or closed areas when the human power is not adequate for the lifting. Therefore, it is not possible for heavy industry facilities, manufacturing industries, construction industries, logistics and similar industries to carry out their operations
without cranes. Furthermore, it is frequently said that even the number of small-scaled facilities which do not use lifting machinery is scarcely any within all industrial sectors. The first cranes are considered to be started being used
during the production processes of humanity since B.C 5th century. We come across with the first crane drawings in the book named as “Ten Books on Architecture - De Architectura Libri Decem” by Marcus Vitruvius Pollio, well-known architecture
and engineer who had lived in the A.C 1th century. This crane was consisting of a pole of a pole of which top there was a block and which was fixed with ropes; another rope passing through the block was connecting to the loads and it was lifted by a treadmill directed by slaves. And then in 15th century, more useful and functional crane called as crane with pulley block was invented in Italy. And the first crane operating with steam power was developed by Scotch John Rennie (1761-1821) in 19th century. MANUFACTURING IN TURKEY DATES BACK TO 1950s Crane manufacturing launched by various firms in Turkey during 1950s was developed in time. Attempt years of this important sub-segment of machinery manufacturing dates back to 1970s. Crane manufacturing maintaining its increase by the efforts of several firms carrying out manufacturing in Istanbul and surrounding provinces directed to the import-based manufacturing upon the removal of the obstacles before the import during 1980s. Therefore, the crane manufacturing capacity of Turkey was beyond the expectations as a result of the increased number of firms towards 2000s. According to the experts, 80% of the crane needs in Turkey is met by the national manufacturing. When taken into consideration of the development speed of the trade which neglects boundary, distance and size in a globalizing world, although the crane segment which manufacturing the lifting equipment which is one of the most important needs of the manufacturing and
logistics industry is predicted to maintain its growth in parallel with the current tendency, 40% of the sectoral manufacturing is being exported. Great majority of the firms carrying out crane manufacturing in the world maintain their competition in the domestic market with Turkish crane manufacturers through their own offices or representation offices. MANUFACTURING METHODS ARE BEING DEVELOPED The fundamental purpose of the lifting operation in industry is to minimize the manufacturing duration and cost and ensure the safe manufacturing process by decreasing the material flow duration within the manufacturing duration to minimum figures. Therefore, in the selection of electric crane, operation of the system with the desired performance during the usage duration of the system is the foremost characteristic to be taken into consideration. Therefore, the experts draw attention to the requirement that the crane and its parts to be selected should be
exactly manufactured in accordance with the standards of European Materials Handling Federation (Federation Europeenne de la Manutention-FEM). On the other hand, products of crane industry generally requires similar design and manufacturing methods. Competitive capacity of the manufacturers increases in products which require engineering and designation for which cheap labor force and raw material are of great importance compared to low value-added standard products. While crane segment, which is the close flower of technology is improving fast thanks to the point where computer technology is standing right now and with its effect on the manufacturing process, improvement in the measurement methods with the counters used and its computerized control increase the flexibility of crane segment especially in the non-standard products. However, with the support of CAD-CAM systems defect-free products can be manufactured in the first place through the minimum cost.
GLOBAL VOLUME HAS REACHED 30 BILLION DOLLARS Electric crane segment in a global scale has been subject of a trade for 30 billion dollars in 2018 according to the data of UN Statistics Department. And Turkey maintains its fast increase in industrial electric crane segment which has an export market for 14.95 billion dollars and import market for approximately same value around the world. Turkey carried out export for 110 million dollars with an increase by 16.2% in the last year. The most powerful countries in crane segment export in 2018 are China with 3.56 billion dollars and an increase by 5.6 percent; Germany with 1.8 billion dollars and an decrease by 0.5 percent; Italy with 1.6 billion dollars and an increase by 15.7 percent; and Turkey ranked as the 20th with its export for 110 million dollars and an increase by 16.2 percent as we have mentioned before. The most powerful purchaser countries in a global scale in 2018 are USA with 2 billion dollars and an increase by 109 • APRIL 2019
MOMENT IN ENGLISH
25.7; Germany with 597.3 million dollars and an increase by 2.6 percent and Holland with 521.9 million dollars and an decrease by 9.6 percent. WE ARE EXPORTING TO HOLLAND IMPORTING FROM GERMANY When detailed export and import numbers are reviewed specifically to Turkey, according to TUİK’s 2018 data, we can say that we are carrying out export mostly with Holland and import mostly with Germany. When the sectoral export of Turkey is reviewed according to the countries according to the TUİK data which is compliance with UN Statistics Department data, Turkey carried out export for 109.8 million dollars with increase by 16.2% in 2018 and Holland has taken its place at the first rank in the list of top 10 counties which we carried out the most export for 17.7 million dollars with increase by 142.3%. While Austria is following this country with export for 11.6 million dollars with increase by 3.3%; export for 6.7 million dollars with an • 110
increase by 34.9 was carried out to Algeria which is in the third rank at the list. According to data published by TUİK, Turkish crane manufacturers in 2018 carried out export mostly in the product group “Block, hand jack, capstan, lever jack, crack sections and parts” with the code of 843110 GTİP. While a value decrease for 7.5 percent in this product group was experienced compared to 2017, sectoral export reached to 27 million dollars. An increase for 8.1 percent in the product group “overhead crane determined on a pedestal mount” with the code of 842611 GTİP which ranked as the second in the list was observed while the export reached to 24.1 million dollars. An increase for 68.9 percent was experienced in the product group “Cranes” with the code of 842619 GTİP which ranked as the third and export value for 22.1 million dollars was reached compared to 2017. The most powerful export increase of the sector in 2018 was experienced in the product group “Tower crane”
with the code of 842620 GTİP. While an increase for 914.3 was experienced in this product group compared to 2017, machinery with the value for 9.5 million dollars were exported. WE WILL DIRECT TO EXPORT IN 2019 Osman Çakmak, the Chairperson of Board of Directors of Electric Crane Manufacturers’ Association (TEVİD) underlines that TEVİD members are especially exhibiting a high performance in export and emphasizes that they foresee a shrunk national sale figures because of the economic situation experienced in 2019. Expressing that they will overcome this shrinkage with the export, Çakmak says: “We believe that we will overcome the share which we have lost in the domestic market with export by developing alternative markets through the most important steps in export.” Reminding that one or more overhead cranes are used in each factory established in Turkey and still operating,
while saying that great majority of these cranes were imported in the past and great amount of money were paid in return, Çakmak draws attention that domestic crane manufacturers are taking the place of the international manufacturers in terms of quality and price and therefore, foreign currencies which are paid for import are now maintained in Turkey and have an important role in meeting the current deficit. Furthermore Çakmak emphasizes that Turkish crane segment can make more robust contributions to the Turkish export activities by creating an important competitive capacity in abroad upon the removal of the obstacle before the reasonable incentives and cheap financing opportunities. Touching upon that as TEVİD, their most important agenda will be the study with the title of “Drawing Inspection and Surveillance Reports on Cranes” which will have a content to protect the customers by preventing manufacture of low quality in the industry, increase the awareness of the crane users and manufacturing firms and emphasize the importance of regular maintenance, Çakmak states that they have reached to the final stage in this study which they have carried out with the Ministry of Industry and Technology and the technical study group will complete their research and present the study to the Ministry in April. According to Çakmak, the most significant contribution of this study will be the prevention of the dangerous usage and occupational accidents in cranes and the increase it will bring to the total quality in the crane segment via inspections and surveillance.
EXPORT FIGURES IN RESPECT TO THE ACTIVITY FIELD OF THE MACHINERY AND ACCESSORIES (JANUARY 1 - FEBRUARY 28, 2018 AND 2019) 2018 QUANTITY (1000 TONNES)
VALUE (MIL $)
ENGINES, ACCESSORIES AND SPARE PARTS
25,2
INDUSTRIAL AIR CONDITIONERS AND COOLING MACHINES
2019
Kaynak: All Exporter Unions Database CHANGE (%)
$/KG
QUANTITY (1000 TONNES)
VALUE (MIL $)
$/KG
QUANTITY
VALUE
416,1
16,5
25,3
352,1
13,9
0,6
-15,4
70,4
321,9
4,6
75,0
349,7
4,7
6,6
8,6
OTHER INDUSTRIAL WASHING AND DRYING MACHINES
70,9
217,8
3,1
79,6
242,3
3,0
12,2
11,2
CONSTRUCTION AND MINING MACHINES
44,7
176,6
3,9
69,3
207,9
3,0
54,9
17,8
PUMPS AND COMPRESSORS
18,8
146,8
7,8
20,9
155,5
7,4
11,2
5,9
AGRICULTURE AND FORESTRY MACHINES
21,8
99,6
4,6
32,5
136,7
4,2
49,0
37,2
MACHINE TOOLS
17,0
126,1
7,4
18,9
133,3
7,1
10,7
5,7
2,5
85,3
33,9
3,5
123,5
35,8
37,0
44,7
TEXTILE AND CLOTHING MACHINES AND ACCESSORIES
17,0
102,4
6,0
21,4
120,4
5,6
26,3
17,6
WEAPONS AND AMMUNITION FOR THE DEFENSE INDUSTRY
2,5
61,3
24,4
3,2
113,5
35,9
25,9
85,2
VALVES
8,7
86,4
9,9
10,3
96,0
9,4
17,5
11,2
12,2
74,8
6,1
15,1
89,3
5,9
23,6
19,5
8,9
85,6
9,6
7,7
76,0
9,9
-13,3
-11,3
12,1
53,3
4,4
16,1
62,5
3,9
32,7
17,3
INDUSTRIAL HEATERS AND COOKERS
7,0
51,9
7,4
9,4
61,5
6,5
33,6
18,6
ROLLER AND FOUNDRY MACHINES, MOULDS
7,4
61,1
8,3
8,0
54,5
6,8
8,7
-10,8
PACKAGING MACHINES, ACCESSORIES AND SPARE PARTS
1,7
29,6
17,4
1,5
28,6
18,7
-10,4
-3,5
GUM, PLASTIC, RUBBER PROCESSING MACHINES
2,8
26,4
9,5
3,1
27,7
8,9
11,3
4,8
OFFICE MACHINES
0,6
22,4
34,8
0,9
24,3
26,3
43,8
8,7
BEARINGS
2,1
25,6
12,0
1,7
18,9
11,3
-21,3
-25,9
PAPER MANUFACTURING AND TYPOGRAPHY MACHINES
2,1
14,7
7,0
2,0
14,2
7,1
-4,2
-3,2
LEATHER PROCESSING AND MANUFACTURING MACHINES AND ACCESSORIES
0,4
2,8
6,7
0,5
3,7
7,3
19,3
30,5
32,4
224,2
6,9
35,9
223,8
6,2
10,6
-0,2
389,3
2.512,6
6,5
461,6
2.716,0
5,9
18,5
8,1
PRODUCT GROUP
TURBIN, TURBOJETS, TURBO PROPELLERS
FOOD INDUSTRY MACHINES, ACCESSORIES AND SPARE PARTS REACTORS AND BOILERS LOAD LIFTING, CARRYING AND STOWING MACHINES
OTHER MACHINES TOPLAM
111 • APRIL 2019