1. A Presentation by ASSOCIATION of TURKISH MACHINE MANUFACTURERS
Arslan SANIR, Secretary General

2. MIB INCLUDES ALL KINDS OF MACHINERY MANUFACTURERS.
ASSOCIATION OF TURKISH MACHINE MANUFACTURERS WAS ESTABLISHED IN 1990 AS A NON GOVERNMENTAL ORGANIZATION, AND IS THE MAJOR NATIONAL ORGANIZATION IN THE FIELD OF MACHINERY IN TURKEY.
MIB INCLUDES ALL KINDS OF MACHINERY MANUFACTURERS.
THE MACHINERY MANUFACTURING INDUSTRY HAS PARTICULAR IMPORTANCE FOR TURKEY DUE TO ITS PROMISING EXPORT POTENTIAL.

3. MIB IS A MEMBER OF CECIMO (EUROPEAN COMMITTEE FOR COOPERATION OF MACHINE TOOL INDUSTRIES) SINCE 1999.
AND ALSO A MEMBER OF PNEUROP (EUROPEAN COMMITTEE OF MANUFACTURERS OF COMPRESSORS, VACUUM PUMPS, PNEUMATIC TOOLS AND ALLIED EQUIPMENT) SINCE MAY 2005.

4. GROSS NATIONAL PRODUCT FOR 2005 IS 361 BILLION US $ (With Current Prices) EXPECTED GNP for 2006 İS 388 BILLION US $
SIZE OF MACHINERY MARKET: BILLION US $ PRODUCTION: 17.7 BILLION US $
EXPORTS : BILLION US $ IMPORTS : 12.1 BILLION US $
THE MACHINERY MARKET REACHING 25 BILLION $ IN 2005 (7% of The GNP) HIGHLIGHTS THE IMPORTANCE OF THIS SECTOR IN TURKEY.
ALTHOUGH THE MACHINERY MANUFACTURING SECTOR HAS SHOWN A SUCCESSFUL PERFORMANCE, THE VALUE OF IMPORTS IS STILL VERY HIGH. FINANCE IS A BIG CONCERN FOR MACHINERY MANUFACTURERS.
BANKS ARE NOT SO EAGER TO GIVE LONG TERM CREDITS TO THE COMPANIES WHEN THEY SELL MACHINES TO THEIR CUSTOMERS.
ON THE OTHER SIDE, FOREIGN COMPANIES CAN GET THIS KIND OF CREDITS FROM THEIR EXIMBANKS.
IT ADVERSELY EFFECTS COMPETITION OF TURKISH MACHINE MANUFACTURERS IN LOCAL MARKET AND ALSO IN EXPORT MARKETS AND CAUSE AN INCREASE IMPORTS.

5. MACHINERY MANUFACTURING SECTOR IN TURKEY IS RATHER YOUNG IN COMPARISON TO THOSE IN EUROPEAN COUNTRIES.
THE FIRST INVESTMENTS IN MECHANICAL INDUSTRY HAVE BEEN INITIATED IN 1950s AS STATE ENTERPRISES.
AT THE END OF 1950s THE FIRST PRIVATE COMPANIES HAVE STARTED INVESTING IN THIS INDUSTRY.
THE COMPANIES THAT ARE MANUFACTURING MACHINERIES ARE 90 % SME’S AND ALMOST ALL OF THEM ARE OWNED BY FAMILIES.
IN 2005, THE AVERAGE NUMBER OF EMPLOYEE OF THE COMPANIES THAT ARE THE MEMBERS OF MIB IS 83.

6. THE AVERAGE NUMBER OF EMPLOYEE BECOMES 64 IF THE SME’S ARE TAKEN INTO ACCOUNT ONLY.
MACHINERY MANUFACTURING MAINLY TAKES PLACE IN THE MARMARA REGION COVERING ISTANBUL, KOCAELİ and BURSA. THE OTHER MAJORMANUFACTURING LOCATIONSINCLUDE CITIES OF IZMIR, ANKARA, KONYA, AFYON, ESKISEHIR and GAZIANTEP.
AS TO THE MACHINE TOOLS, THE PRODUCTION IS RATHER REALIZED IN ISTANBUL, BURSA, KONYA AND IZMIR.
THE PRODUCTION OF AGRICULTURAL MACHINERY IS PERFORMED IN MANY CITIES, HOWEVER MOST OF THE COMPANIES ARE VERY SMALL IN SIZE.
THERE ARE APPROXIMATELY 3’000 COMPANIES REGISTERED AS MACHINE MANUFCTURERS BUT COMPANIES WHICH EMPLOY MORE THAN 20 WORKERS ARE ONLY AROUND 1’000.
THE REMAINING ARE MOSTLY REPAIR or RENEWING SHOPS or THEY PRODUCE SOME SIMPLE EQUIPMENT FOR THE LOCAL MARKET.

7. MACHINERY MANUFACTURING CONCENTRATED AREAS IN TURKIYE

8. THE COMPANIES THAT ARE PRODUCING FOR DOMESTIC MARKET TILL 1990, STARTED TO PAY MORE ATTENTION TO APPLICATION OF NEW TECHNOLOGIES, R & D AND QUALITY, ON THE FOLLOWING YEARS.
IN THE MEAN TIME, THEY BECAME MORE INTERESTED IN PARTICIPATING IN FOREIGN EXHIBITIONS.
FOR INSTANCE, IN 2005 , 40 FIRMS PARTICIPATED IN EMO, WHERE THIS NUMBER WAS ONLY 7 IN 1995.
THIS DEVELOPMENT RESULTED IN A STEADY INCREASE OF EXPORTS SINCE ONWARDS, AS SHOWN IN THE TABLE.

9. IMPORT-EXPORT OF MACHINERY (With Current Prices)
MACHINERY FOREIGN TRADE
Billion US $ 14
YEARS
EXPORTS (X 1000)
CHANGE %
IMPORTS (X 1000)
EXP. / IMP. %
1998 -
14,55
1999
9,01
-33,87
23,99
2000
12,10
15,92
23,19
2001
14,80
-15,97
31,69
2002
32,80
31,14
31,35
2003
50,11
25,75
32,09
2004
25,49
27,29
37,76
2005
24,00
17,47
39,87 12 10 8 6 4 2
1998
1999
2000
2001
2002
2003
2004
2005
EXPORT
IMPORT

10. THE RATE OF SALES OF LOCALLY PRODUCED MACHINERY IN THE DOMESTIC MARKET IS ALSO INCREASING AS WELL AS THE EXPORTS.
THE OVERALL MACHINERY PRODUCTION HAS INCREASED 2 TIMES, AND THE EXPORTS HAVE INCREASED 3 TIMES BETWEEN 2001 AND 2005.
MACHINERY EXPORT IS IN THE 4. RANK IN TOTAL EXPORT OF TURKIYE AND 60% OF TURKISH MACHINERY EXPORT IS TO EU COUNTRIES, USA AND CANADA.
OBVIOUSLY, IN SUCH DEVELOPED COUNTRIES, QUALITY, RELIABILITY AND TECHNOLOGY OF MACHINERY IS MORE IMPORTANT THAN PRICE.
WE THINK THAT ALL THESE FACTS PROVE THAT MANY TURKISH MACHINE MANUFACTURERS HAVE A COMPETITIVE POSITION IN WORLD MARKET.

11. TURKISH MACHINERY TRADE (EXPORTS – IMPORTS) (US $ Million)
2001
2002
2003
2004
2005
TOTAL SALES
13.035
16.175
19.322
23.949
24.995
Change %
24,09
19,46
23,94
4,37
PRODUCTION
9.663
11.779
14.300
17.500
17.675
Production Change %
21,90
21,40
22,38
1,00
EXPORT
1.564
2.077
3.118
3.913
4.852
Export Change %
32,80
50,11
25,49
24,01
IMPORT
4.936
6.474
8.141
10.362
12.173
Import Change %
31,14
25,75
27,29
17,47
Total Export of Turkiye
31.334
36.059
47.252
62.773
73.122
Total Import of Turkiye
41.399
51.553
69.339
97.161
Machinery Export / Total Export (%)
4,99
5,76
6,60
6,23
6,64
Machinery Import / Total Import (%)
11,93
12,56
11,74
10,67
10,49

12. TURKIYE IS IN A VERY ADVANCED LEVEL IN PRODUCTION OF SOME SPECIFIC TYPES OF MACHINERY.
ACCORDING TO CECIMO PUBLICATIONS, TURKIYE IS THE 9th BIGGEST COUNTRY AS A MACHINE TOOL MANUFACTURER and 12th AS AN EXPORTER AMONG THE 15 CECIMO MEMBER COUNTRIES.
ACCORDING TO GARDNER PUBLICATIONS, PUBLISHED IN U.S.A., TURKIYE IS 14th BIGGEST COUNTRY AS A MACHINE TOOL MANUFACTURER and 20th AS AN EXPORTER COUNTRY IN THE WORLD.
19% OF TURKIYE’S MACHINE TOOLS EXPORT WAS TO GERMANY FOLLOWED BY ITALY, SPAIN, U.S.A. and RUSSIA.

13. 60% OF MACHINE TOOLS EXPORT WAS TO EU COUNTRIES, U.S.A. and CANADA.
IN MACHINE TOOLS PRODUCTION, SHEET METAL PROCESSING MACHINES ARE IN LEADING POSITION. IN 2005, 70% OF THE MACHINE TOOLS PRODUCTION CONSISTED OF SHEET METAL PROCESSING MACHINES.
IN 2005, APPROXIMATELY 30% OF THE MACHINE TOOLS PRODUCTION CONSISTED OF METALWORKING MACHINE TOOLS.
60% OF MACHINE TOOLS EXPORT WAS TO EU COUNTRIES, U.S.A. and CANADA.
BESIDES MACHINE TOOLS, CONSTRUCTION MACHINERY, PUMPS and COMPRESSORS, FOOD INDUSTRY MACHINERY, AIR-CONDITIONING AND HOISTING and HANDLING MACHINERY MANUFACTURING INDUSTRIES ARE ALSO IN AN ADVANCED LEVEL.

14. EARTH MOVING EQUIPMENTS & CONSTRUCTION MACHINERY
ONE of THE INTERESTING SECTORS IN TÜRKİYE.
BECAUSE of FAST GROWING DEMAND, NEW INVESTMENTS IS EXPECTED IN THIS SECTOR.
TOTAL IMPORT
Year Total
USD
USD
USD

15. EARTH MOVING MACHINERY (Excavators, Wheel Loaders, Dozers, Graders, Scrapers,. . . )
Total Market USD
Import USD
Production in Türkiye USD
Export USD

16. EARTH MOVING MACHINERY
LOCAL MARKET DOMINATED, 84%, by IMPORTS.
FIRST 6 COUNTRIES EXPORTING to TÜRKİYE
JAPAN USD
SOUTH KOREA USD
ENGLAND USD
BELGIUM USD
SWEDEN USD
ITALY USD

17. CONSTRUCTION MACHINERY (Crushers, Screening & Washing, Classifying Equipment, Concrete Batching & Asphalt Plants)
Total Market USD
Import USD
Production in Türkiye USD
Export USD

18. CONSTRUCTION MACHINERY
FIRST 6 COUNTRIES EXPORTING to TÜRKİYE
ITALY USD
GERMANY USD
FRANCE USD
USA USD
DENMARK USD
ENGLAND USD

19. ON BEHALF of ASSOCIATION of TURKISH MACHINE MANUFACTURERS THANK YOU.