According to consolidated data for the machinery manufacturing industry shared by the Machinery Exporters’ Association (MAİB), Türkiye’s total machinery exports, including free zones, reached 26 billion dollars in the first eleven months of 2025.
Based on consolidated sector data, total machinery exports for the January–November period increased by 0.8% compared to the same period last year, rising to 26 billion dollars. During this period, the average export price per kilogram maintained its historic level at 8.1 dollars. Despite a 6.9% decline in export volume, an increase was recorded in value terms.
On an annualized basis, total machinery exports, including free zones, reached 28.4 billion dollars, while machinery imports stood at 45.2 billion dollars as of the end of October.
Exports to Germany increased by 5.3% over the eleven-month period, reaching 2.9 billion dollars, supported by a 10.6% monthly increase recorded in November. In the United States market, where exports rose by 14.7% in November, exports increased by 6.7% over the eleven-month period, reaching 1.7 billion dollars.
During the same period, exports to the Near and Middle East declined by 3%. Exports to Iraq fell by 8.4% to 670 million dollars, while exports to Syria surged by 183%, reaching 134 million dollars. In November, food and industrial machinery exports recorded the highest monthly increase at 26.7%, whereas paper and printing machinery and leather processing machinery experienced declines of around 50%.
Call from Machinery Exporters to the European Union
Machinery Exporters’ Association Chairman Kutlu Karavelioğlu drew attention to discussions within the European Union surrounding the “Industrial Acceleration Act,” which aims to increase the share of equipment produced within Europe to up to 70% under the “Made in EU” label in certain sectors.
Emphasizing that competitiveness depends not only on protectionism but also on cost control, Karavelioğlu stated:
“As a strategic partner of the EU and a member of the Customs Union, Türkiye should also be included in the definition of ‘Made in EU.’”
“Developments That Will Deeply Affect Europe’s Supply Chains”
Karavelioğlu noted that although global monetary tightening policies are gradually easing, current data indicate continued multidimensional pressure on global industrial production.
“While optimistic expectations for 2026 are increasing in line with global developments that may positively affect financing costs, manufacturing PMI indices in the United States and the Eurozone remain below the threshold level. This confirms weak new orders and the fragility of industrial recovery. After the export surge driven by tariff expectations in the first three quarters, growth has slowed. Meanwhile, the Eurozone’s growth potential remains insufficient to secure long-term competitiveness.”
He also pointed out that low-cost imports from Asia in sectors such as automotive, machinery, and clean technologies are undermining the profitability and investment appetite of European industry. The EU is once again addressing the delicate balance between protectionism and competitiveness.
Referring to discussions around the “Made in EU” label and the Industrial Acceleration Act, Karavelioğlu warned that although the primary target of such policies may be China, the resulting regulations could have significant consequences for all suppliers deeply integrated with the EU.
He emphasized that diplomatic initiatives highlighting Türkiye’s integration into the EU value chain, the contribution of EU-capital companies operating production facilities in Türkiye, and the scale of reciprocal supply relationships between industries would help ensure the process is handled rationally and constructively.
“The EU Should Include Türkiye in the ‘Made in EU’ Definition”
Karavelioğlu underlined that the financial burden faced by European companies due to higher input costs could be alleviated by including Türkiye within the European production definition.
“The motivation behind this proposal, which poses risks to the multilateral trading system, is the need to protect competitiveness. According to a recent survey by CLEPA, representing Europe’s automotive suppliers, 70% of European suppliers compete directly with Chinese imports and are concerned that declining profitability may fall below the minimum threshold required to sustain investment.”
He added that similar discussions are taking place regarding the expansion of the Carbon Border Adjustment Mechanism (CBAM) to final products, noting that regulations designed to prevent carbon leakage may create additional cost pressures on industry.
“We Can Permanently Strengthen Our Position in the Global Value Chain”
Karavelioğlu stated that although China’s manufacturing activity has remained in contraction territory for an extended period, it has maintained its global trade weight through aggressive pricing and scale advantages.
“Following the trade wars triggered by the Trump administration, China experienced a 29% decline in exports to the United States but redirected its focus to strategic markets such as the EU and Türkiye, generating a historic trade surplus approaching 1 trillion dollars. China’s machinery exports increased by 8% globally and by 13.4% in Türkiye.”
He emphasized that this situation deepens debates on unfair competition not only in terms of pricing but also in technology, data security, and industrial policy.
For Türkiye, he identified two critical steps: First, protecting industrial and supply chain ties with the EU while advocating for fair competition conditions. Second, implementing a determined industrial policy that systematically strengthens innovation, R&D, strategic technologies, and domestic production capacity in order to establish a sustainable balance in competition with China.
“We Want to Regain Our Pricing Power”
Karavelioğlu concluded by stating that while the producer price index in the machinery sector increased by 29.6% year-on-year as of November, turnover growth remained at 21.4%, indicating difficulty in passing rising costs onto prices.
While overall manufacturing production increased by 3.3% annually as of October, machinery production contracted by 6.1%, highlighting a significant divergence from general industrial trends.
Although machinery and equipment investments increased by 6.2% in the first three quarters of the year, the capacity utilization rate in the machinery sector fell to 63.9% in October, near historic lows. This suggests that investments are increasingly being met with imported machinery.
Karavelioğlu emphasized that in order to preserve competitiveness and restore pricing power in the machinery sector, it is urgent to facilitate access to financing, strengthen the investment environment, and implement policies that reduce import dependency.
Source: https://www.makinebirlik.com/Tr