MACHINERY MANUFACTURING INDUSTRY

Machinery industry; it is the industry sector that meets machine manufacturing and maintenance needs. The development of machinery manufacturing also affects the development of other manufacturing industry sub-branches. Having a competitive and strong manufacturing industry is the most basic building of being a developed country. In the machinery manufacturing industry is an industry branch that is more important than the others for developed countries. Because the machinery manufacturing industry is easily integrated into other sectors. Machinery sector; “Construction Machinery”, “Machine Tools”, “Agricultural Machinery”, “Engine, Parts and Parts”, “Air Conditioning and Cooling Machines”, “Machines Used in Construction and Mining”, “Pump, Compressor”, “Labeling, Packaging Machines” It closely affects almost all sectors of the manufacturing industry with its sub-sectors such as “Printing Machines”, “Weaving Machines”, “Electrical Equipment Manufacturing”.

The share of the machinery sector in world trade is approximately 15%. The machinery sector provides opportunities in many areas such as high value added rate, necessity of technology production, a wide industrial network, reducing investment costs, employing qualified personnel and reducing foreign dependency.

It is seen that the machinery manufacturing industry is the driving force of industrialization throughout the world. The share of the machinery manufacturing industry in the manufacturing industry is increasing day by day in all countries, especially in advanced industrial countries. The machinery manufacturing industry is very concentrated, especially in OECD countries. Among these countries, especially Japan, Germany, America, Italy and Sweden are in the leading group in machinery manufacturing. According to the report; the machinery manufacturing industry in the world’s total trade is over 10%. The values in the report prove the reason why the machinery manufacturing industry, which has the highest share in world trade, is also of great importance in developed countries. Considering the share of developed countries in machinery exports, it is seen that large-scale companies are in the first place. This situation positively affects the international competition of countries and their power in the market.

The fact that a country imports machinery in a high amount shows that that country invests in production. Therefore, it is necessary to give importance to both foreign trade balance and sectoral production in the machinery sector. The investments made by the manufacturing industry sectors in machinery and equipment are among the key points in increasing production capacity and capabilities.

In Turkey, the machinery manufacturing industry has started to have an important place among the industrial sectors since the 1970s. However, processes such as economic crises and the stages of integration with the European Union have affected the development of the sector. Although the industrial policies applied to Turkey and the 2001 economic crisis suspended the machinery manufacturing sector, the growth has shown itself again since 2010. Turkish Machinery Industry has shown a growth rate of around 25% since the 1990s. Total machinery manufacturing in Turkey is over 20 billion dollars. In addition, the machinery industry provides employment opportunities for 200 thousand people in Turkey and stands out with its export capacity.

The machinery sector provides the main machinery and equipment needed for the automotive, metal goods, textile, metal main industry investments in Turkey. The provinces where the machinery sector is the most; Bursa, Istanbul, Kocaeli, Izmir, Eskisehir, Ankara, Konya, Gaziantep.

According to the 2021 Trade Map data, the export figures of the products with the HS code of 84 (Machines, mechanical tools, nuclear reactors, boilers; their parts) in Turkey are as follows;

The 11 countries to which the products with 84 HS codes are exported the most by Turkey are given in the table;

Accordingly, Turkey’s machinery sector exports the most to Germany, Russia, USA, England, France, Italy, Spain, Iraq and Poland. Machinery export data in the table is quite high compared to other sectors. This situation emphasizes the importance of development in the machinery sector and exports in the machinery sector for Turkey.

According to the “Machine Industry Macro Market Analysis, Current Situation Assessment, Strategy and Implementation Plan”, Turkey’s competitiveness in the machinery industry is lower than in countries such as the USA, Germany, South Korea, Italy and Mexico. In order to increase competitiveness, some suggestions are presented in this report. These; “Creating strategies to adapt to technology, reviewing the market control structure, establishing target market strategies, increasing institutionalism, expanding cooperation with universities, supporting domestic products in public procurement, improving education infrastructure, improving foreign capital conditions, establishing a strong domestic supply chain. Reviewing R&D and financing opportunities, improving the overall incentive structure”. With these suggestions, becoming a country that produces its own instead of importing machinery from other countries will also help Turkey reduce its high current account deficit.

While Turkey is implementing these recommendations; It faces some problems such as high prices in the energy sector, high SSI premiums, insufficient resources to be allocated to R&D investments, and lack of trained personnel. In addition, the fact that the majority of the companies in the sector are SMEs is a major obstacle in finding financial resources. Therefore, an Industry 4.0 transition process map needs to be prepared.

In order for the machinery sector to produce high value-added products, state supports should be increased, universities and professional chambers should cooperate with public institutions. In addition, companies that create unfair competition and produce under the counter should be identified and necessary sanctions should be applied.

The share of the machinery manufacturing industry in world foreign trade is very important. International competition measures in world trade make it necessary to develop in the machinery manufacturing industry. All developed and developing countries are increasing the importance they attach to this sector day by day. The machinery manufacturing sector has a direct impact on all other sectors. Turkey is also a country with great potential in the machinery sector. Completing the shortcomings of the companies in Turkey, paying attention to the published reports and increasing their precautions will accelerate their progress in this sector and strengthen them in the international competitive environment.