According to a statement from the Association of Exporters of machines, machine industry, Turkey’s largest export market ,Germany, despite the slowdown which intensified in Germany’s industrial production, increased total exports 4.4 percent in the first quarter of the year. The machinery sector, which signed $ 1.6 billion in exports in March, carried its exports to $ 4.3 billion in the first quarter of the year.
The Chairman of the Machinery Exporters Union Kutlu Karavelioğlu stating that they intensified their foreign contacts in order to compensate the negative effects of the economic uncertainties in the European Union (EU) countries where more than half of the machinery exports are realized, and said that they are aiming to reach the USA and the UK approaching 18 percent rate, in all the advanced industrial countries. Karavelioğlu pointed out that the 17 percent increase in the amount of machinery sold abroad was not reflected in the export price at the desired rate and made the following evaluations: “The effects of the two major uncertainties that will determine the direction of world trade are deepening rapidly. The end of the trade wars between the US-China and the EU-Great Britain and the prolongation of the negotiations on the Brexit deal have caused a slowdown in the world economy beyond expectations. The growth forecast for the global economy up to 2.6 percent, increased the pressure on investment goods. We observe that the decreases experienced in domestic industrial production, capacity utilization rates and confidence indices are returning to horizontal. We believe that with the completion of the election process, the country’s agenda will return to the economy again. ”
Kutlu Karavelioğlu stated that the euro’s severe depreciation against the dollar and the 11 percent decrease in exports to Germany, the sector’s main market, limited the targeted increase in machinery exports said ” Machinery manufacturers around the world are forced to reduce prices in order to fill their techno-economic capacity in the increasingly shrinking global market. Turkish machinery manufacturers, which have become one of the strongest players in international competition, are also greatly affected.”
In the first quarter of the year, the exported machines increased by 17 percent and reached 750 thousand tons, he said. ” Although there are some convenience in making competitive prices for high value added products, the main reason for the decrease in the average kilogram price gradually from 6.3 dollars to 5.6 dollars in the last 5 quarters was the contraction in the domestic market. Continuing to increase exports, with the effect of quantity, seems to be the only way in the short term for our sector to carry out its activities in a healthy wayIn this period, all our attention will be getting more shares from the growing markets.”
Karavelioğlu stated that the total exports of machinery to Russia in the first 6 months of the year was 224 million dollars, said that “We believe that we can raise the increase of machinery exports in the Russian market by 11.8 percent in the first half of the year to 20 percent by the end of the year through intensive contact and promotion activities in this country.”