The industrial sector is aiming to increase the number of high value-added products produced in the country in an effort to increase exports and boost the economy.

Turkey has grand ambitions to celebrate its 100th anniversary as a republic, set out in its Vision 2023 program. The country aims to increase total exports to $500 billion and elevate the economy into the top 10 worldwide. This would require the country to more than triple its current exports, which registered at $151.7 billion in 2013. The government plans to do this by setting targets for each sector to reach. And recent statistics show that it is on the right path. Exports in February 2014 rose to $13.15 billion; a 6.2% increase on the year before. Of this, the lion's share of $12.29 billion came from the manufacturing sector. However, while manufacturing took up 93.5% of exports as a whole, when split in to high, medium, and low technologies, only 3.1% of exports were in the high category and 30.3% in the medium category of technologies. If Turkey wants to reach its target, it has to increase its value-added on exports.


Overall, the industrial production index in Turkey increased in February 2014 by 4.9% and the manufacturing index by 4.4% compared to the same month the year before according to TurkStat. The largest sub-sector to see an increase was the tobacco industry, which saw an increase of 10.1% in the manufacturing of tobacco products. This was closely followed by computers, electronics, and optical products, which experienced an increase of 9.5%. As production increased, so did the turnover. The manufacturing index for turnover increased by 20.5% compared to February 2013. The sector to see the highest turnover was in the manufacturing of wood and wood products, which saw an increase of 6.3% followed by fabricated metals at 5%. In 2012, the total value of industrial products sold was TL655.8 billion, while the total value of industrial products produced was TL760.8 billion. The sector experienced a 10.6% increase in the value of products sold and a 10.5% increase in the total value of products produced.


One of the largest of the industrial sectors is the steel industry. In 2013, Turkey managed to move up to eighth largest producer of steel and iron in the world. It currently has a global market share of 2.34% and produced 34.7 million tons in 2013. While global steel production increased by 1% between 2012 and 2013, Turkey's industry increased by 9%. By 2017, total production is expected to reach 47 million tons at a CAGR of 5.5%.

Another sector that Turkey is beginning to dominate is the ceramics industry. Turkey is Europe's third largest and the world's sixth largest producer of ceramic tiles. The country produces 3.2% of global production and exports 104 million sqm of tiles per year to 113 different countries. The domestic market consumes 160 million sqm of tiles, making it the 11th largest market in the world.


According to the General Secretariat of the Istanbul Textile and Apparel Exporter Association (İTKİB), there are approximately 7,500 textile manufacturers producing goods for export. The main exports are cotton fiber, yarn, and woven fabrics, which account for 24% of total textile exports. The main export destinations are Russia, Italy, and Germany. In addition, according to İTKİB, there are over 11,000 apparel manufacturers producing goods for export. The most common apparel export is knitted products comprising 54% of exports and woven products, taking up 33% of exports. In the knitted category, pullovers, cardigans, and socks are the most popular items for export with the top destinations being Germany, the UK, and France. In line with Turkey's goal of $500 billion worth of exports, the textile industry has been set a target of $80 billion by 2023, with apparel accounting for $60 billion and textiles the remaining $20 billion. The textile industry is a key sector of the Turkish economy as it provides 2 million direct jobs. The industry has invested a total of $100 billion in advanced technologies, according to the Turkish Textile Employers Association (TÜTSİS), to help boost efficiency in the sector.


The auto sector in Turkey has a long tradition dating back to the 1950s, when it was state-protected. Nowadays, Turkey is the 16th largest auto-manufacturer in the world, a true testament to how far the business has come. Sector performance was good in 2013, after experiencing growth of 9.2%. This was driven by 19.5% year-on-year growth in the passenger car segment; however, LCV and HCV sales declined slightly by 0.3%. The beginning of 2014 hasn't got off to the best start either, with a 23.5% overall decline in year-on-year sales as of March 31, 2014. Passenger car sales, the backbone of growth over 2013, fell 21.9% and LCVs fell a worrying 32.1% in year-on-year terms. The main reason for the fall in the passenger car segment was Turkey's high special consumption tax (SCT), which stands at 64.6%, while restrictions on car financing also has their effect. The outlook for 2014 remains mixed, with consumer confidence needing a boost, while limits on auto loans may need to be reviewed. However, there is still plenty of room for growth as vehicle ownership numbers are far below the OECD average. In Turkey, there are 154 vehicles per 1,000 people, while the OECD average is 563 per 1,000.