Machinery in Turkey. Known for being R&D intensive Turkey graduates over 450,000 Engineers every year


Turkey factory and machinery  manufacturing continues to be one of the key growth drivers of the Turkish industrial 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 provide inputs to other 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. Local sourcing accounts for approximately 85 percent of all inputs at the production level.

  • Total export value of the machinery industry reached USD 13.4 billion in 2015, up from USD 5.2 billion in 2005.

  • Annual growth rate of machinery exports between 2005 and 2015 was 16 percent, double Turkey’s overall export growth rate during the same period.

  • As the 2nd largest export industry of Turkey, accounting for a 9.3 percent share in Turkey’s total exports, machinery products are exported to more than 200 countries.

  • 60 percent of the total machinery product exports are shipped to the EU countries and the USA.

  • Total imports of the machinery sector surpassed USD 26 billion in 2015 while posting an average annual growth of 10.3 percent over the past decade, evidencing the strong demand from the domestic market.

  • FDI inflow in machinery manufacturing represents a significant source for Turkey’s overall FDI amount, making up around 20 percent of total manufacturing FDI (Foreign Direct Investment into Turkey) between 2005 and 2015.

  • R&D expenditures on machinery manufacturing reached USD 600 million in 2014, accounting for almost 10 percent of the total R&D expenditure of Turkey.

  • 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 Geo-strategical location of Turkey, while enablers include a skilled workforce, generous investment incentives, an innovation-oriented infrastructure, and a strong supply base and domestic clusters.