Machinery manufacturing continues to be one of the key growth drivers of the Turkish economy. This sector plays a crucial role in the development of Turkey’s greater manufacturing industry due in no small part to its capability to produce intermediate goods and to provide inputs to key sectors such as construction, energy, textiles, agriculture, and mining. The machinery manufacturing sector in Turkey is known for being R&D intensive -- Turkey graduates over 450,000 engineers every year -- and for creating high value. The export/import ratio of the industry has reached 52 percent, and local sourcing accounts for approximately 85 percent of all inputs at the production level.
Turkey’s competitiveness in the machinery sector is driven by favorable input costs and strong enablers. Input costs include competitive labor cost, an affordable and reliable energy supply, and logistical advantages based on the geostrategic location of Turkey, while enablers include a skilled workforce, generous investment incentives, an innovation-oriented infrastructure, and a strong supply base and domestic clusters.