Table of Contents

1.2 Current state of affairs of Textiles and Apparels in Turkey

1.3 Economic Contribution

1.4 Export state of affairs

1.5 Cotton market

1.6 Cotton Market Trends

1.7 Home Textile Industry

1.8 Foreign Investments in the Sector

1.9 Conclusion

1.10 Disclaimer:

Textile & Apparel Industry in Turkey

Market Overview

Textile and Apparel trade has an incredible contribution to the Turkish economic system. The trade has been denominated because the locomotive of the Turkish Economy for years. Turkey's textile and attire exports continued rising lately after started falling in January, with elimination of EU and US quotas.

The industrialisation efforts of the 60's and 70's gave start to the trendy textile trade in Turkey. At the start, this sector was working as small workshops. But the sector confirmed fast growth and in the course of the 1970's started exporting. Today, Turkey is among the essential textile and clothes producers and exporters in the world.

Turkey's textile and clothes producers started relocating manufacturing in Eastern Europe and Central Asia. In the final three years, Turkish textile and attire corporations confronted elevating difficulties, after having considerably succeeded in the eighties and the primary a part of the nineties.

Chinese textile exports after a decades-old quota system limits ends on January 1, 2005 and the World Trade Organization believes that inside three years the Asian big may very well be producing over half of the world s textiles, up from 17% in 2003.

The finish of the quota regime has spawned fears of widespread job losses all over the world, together with in Turkey, whose personal textiles and attire exports stand at round $20 billion a 12 months.

Thus, it's crucial to know the Turkish textile and attire sector, the weak point and the energy it has in the World market.

Current state of affairs of Textiles and Apparels in Turkey

The textile and attire sector has been the spine of the Turkish economic system with an important position to play in the industrialisation course of and market orientation of the economic system in the final 20 years. In the Eighties, it was the main sector associated to the worldwide economic system and the export revenues of this difficult foreign money incomes sector contributed considerably to the general economic system.

The textile sector continued to be one of many main contributors to the Turkish economic system, being one of many quickest rising sectors in the Nineties with a mean 12.2% annual development, whereas the Turkish economic system had a mean development of 5.2% per 12 months. Total funding in the sector exceeded US$ 150 billion, of which greater than US$ 50 billion was invested in the final 5-10 years.

Textile trade began out in the Nineteen Sixties in small workshops, have quickly developed and reworked Turkey into a worldwide competitor.

The whole variety of corporations in the sector, dominated (95%) by the non-public sector, quantity round 44,000 and 25% of them are energetic exporters. The attire trade is constituted primarily (80%) of small and medium sized corporations whereas the technology-intensive textile manufacturing has been undertaken by large-scale corporations. Today, round 20% of Turkey's 500 largest corporations are concerned in the textiles and attire sector.

Low labor prices, a professional workforce, comparatively low cost uncooked supplies have performed an essential position in the numerous development of the sector; in addition to a liberalized financial atmosphere and export-led insurance policies in the final 20 years.

The manufacturing worth of the sector is over US$ 20 billion. Employment in the sector is estimated to be about 4 million individuals (2.5 million employed straight and an extra 1.5 million not directly by means of the sub-sectors). Official statistics additionally reveals that round 500,000 workers in the sector as a consequence of unregistered labor power.

The attire sector exports roughly 60% of its manufacturing. Capacity utilization charges are roughly 75% particularly amongst exporting producers.

Turkey ranks additionally among the many prime ten international producers of wool material, carpets, artificial filament and fiber, polyester and polyamide filament. While Europe's third largest polyester producer is a Turkish-US three way partnership, Turkey's synthetics manufacturing mounts to fifteen% of Western Europe's capability.

Economic Contribution

Textile and clothes trade has an incredible contribution to the Turkish economic system. For instance, textile and clothes trade accounts for:

. 10% in GNP

. 40 % in industrial manufacturing

. 30% manufacturing labor power

. 35% of exports incomes

The textile and attire sector contributes over 20 billion USD to the Gross National Product. The sector is usually essential for its export earnings; its share in the nation's whole exports has been between 33-39% since 1990.

The main export marketplace for Turkish textile and attire items is the EU nations, which account for about 65% of whole textile and attire exports. Turkey ranks 2nd in attire and textile imports to the EU having an 8.2% and 4.8% share in the EU's whole textile and attire imports respectively as of 2003.

Export state of affairs

Textile and attire exports elevated by 14.6% on common per 12 months throughout 1980-2003. Especially till the second half of Nineties, the sector's exports elevated at a fee above the rise in whole exports of Turkey in addition to the rise in international textile and attire exports. In 2003, the sector's exports totaled US$ 15.1 billion, having a share of 32.6% of the full exports. Exports rose to 23% in 2003, phrases of worth to 2002. The growing share of apparels in exports since 1986 signifies the efforts to supply extra worth added merchandise.

After the EU, the USA is a giant and impending market. Turkey is the nineteenth attire provider and ninth textile provider of USA with a 1.9% and a pair of.9% share respectively. Beside the EU and the US market, new markets are North African nations particularly, Tunisia, Egypt and Algeria; Middle East nations particularly Syria, Israel and Saudi Arabia; Eastern European nations particularly Romania, Bulgaria, Poland and Hungary; and CIS nations. The sector faces quotas solely in the USA and Canada. The Russian Federation was additionally a giant marketplace for the Turkish textile and attire sector until the monetary disaster of August 1998. It was the third greatest marketplace for attire and ninth for textile merchandise in 1997. Russia remains to be a promising marketplace for textile and attire sectors with its excessive consumption potential that can come out in the next years particularly after developments in direction of higher integration to the world economic system and WTO membership prospects.

Cotton market

Turkey is an important cotton nation, which is a bonus in uncooked supplies, for the clothes trade. Turkey is a standard cotton producer and makes use of this benefit in the textile and attire sector. Turkey ranks 1st in Europe and sixth in the world cotton manufacturing with a mean manufacturing of 800,000-900,000 tons per

12 months. Moreover, with the completion of irrigation tasks inside Southeastern Anatolian Project (GAP), Turkey's most complete growth program, present cotton manufacturing is predicted to double by the 12 months 2005.

During 2003-04 season Turkey produced 893,000 tons of cotton. About 30% of the cotton manufacturing is top of the range lengthy staple cotton and the remainder is of medium high quality. The cotton trade offers a aggressive edge to the textiles trade, which makes use of cotton as its important uncooked materials.

Cotton Market Trends

Main locations for cotton yarn exports are Italy, Portugal, Greece and Belgium and for cotton material the UK, Italy, USA and Belgium. Whilst Turkey was a net exporter of cotton, the commerce stability reversed in 1992 and since then Turkey has been a net importer of cotton since home demand has persistently exceeded accessible shares. Beside cotton, Turkey has a robust standing in artificial fiber, wool and mohair productions. Turkey ranks ninth in artificial fiber, eighth in wool and third in mohair manufacturing in the world.

Home Textile Industry

Besides the Turkish textile trade Turkish residence textile trade has additionally proven a development in phrases of manufacturing and exports. In current years the manufacturing of residence textiles has proven a steady enhance because of the rise in home and exterior demand for residence textiles. Turkish residence textile trade has recorded development in phrases of manufacturing and exports in current years. Almost every kind of residence textiles are produced in Turkey. These could also be listed as follows in order of their export values: mattress linens, bedspreads, desk linens, towels, bathrobes, voiles, curtains, lace, inside blinds, curtain or mattress valances, blankets, cushions, pillows, quilts, eiderdowns.

In residence textile sector, moreover massive scale corporations there are various small and medium sized corporations scattered throughout the nation. As a division of the textile trade, the house textiles sector accounts for 3.2% share in Turkey's whole exports and have been an essential sub-sector for the Turkish economic system. European nations are a very powerful markets for Turkey s residence textile exports. At current Germany, the UK, France, the USA, Netherlands and Russian Federation are the most important markets for Turkey s residence textile exports. New markets akin to Poland, Hungary, Romania and CIS nations are gaining increasingly significance.

Foreign Investments in the Sector

The merchandise of the Turkish textile and attire sector have popularity in international markets on account of the supply of top quality cotton in Turkey, huge utilization of CAD (Computer Aided Design) and CAM (Computer Aided Manufacturing) and the rise in the variety of certified personnel.

Conclusion

The sector is conscious of the development in worldwide markets in direction of growing demand for more healthy and extra environmentally pleasant merchandise and tries to adapt itself to those developments by authorized and technical rules.

Nevertheless, it's onerous to maintain its aggressive place in the world market filled with rising gamers. Thus, producers have shifted their operations to value-added merchandise and creation of brand name names. Currently, 30% of Turkish producers have their very own designs and types in worldwide markets.

As present research reveal, developed nations may have a lowering share in international textile manufacturing whereas the creating nations will enhance their manufacturing capability to fulfill the growing calls for. It can be estimated that by 2005, the creating nations will enhance their self-sufficiency in textile manufacturing. The US with an estimate of 200% enhance in textile consumption can be estimated to have a 32% lower in self-sufficiency by the 12 months 2005.

Turkey, with its adaptability to European requirements and rules associated to atmosphere, well being, high quality, and security is aiming to maneuver into the manufacturing of increasingly worth added merchandise, into an period in which the Turkish textile trade shall be identified for its high quality logos and shall be pricing a product for the Made in Turkey signal.

Source by Gaurav Doshi