Harvard Center for Textile & Apparel Research

More documents

Recommendations

Info

B.Tan Overview of the Turkish Textile and Apparel Industry 8 Export values (1000 $) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - Textile Apparel Textile and Apparel 1970 1975 1980 1985 Year 1990 1995 2000 Figure 1. Turkish Textile and Apparel Exports 1970-1999 This increase is mainly a result of high growth in the apparel industry. The apparel exports had a record annual increase of 24% in 1988. The share of the apparel industry in the total textile and apparel exports increased from 36% in 1984 to 74% in 1999. Turkey is the largest textile supplier and the second largest apparel supplier of the European Union [17]. In the world market, Turkey ranks as the sixth largest apparel and the fifteenth largest textile exporter (1998). Although the share of Turkey in the world’s export markets is 0.4%, the share of the Turkish textile and apparel sector is 4.1%. The industry is composed of 44,000 mostly small- to medium-size establishments. In 1997, there were 105 large textile and apparel companies among the Turkey’s largest 500 industrial firms. After the privatization of the most of the state owned enterprises, the private sector is currently dominating the industry. Despite its accomplishments over the last years, the Turkish textile and apparel industry is currently facing a number of crucial challenges. The competitiveness of the industry is decreasing due to rising labor costs, inefficiencies and quality problems, and the
B.Tan Overview of the Turkish Textile and Apparel Industry 9 emergence of other low-cost suppliers in the Far East and Eastern Europe. The changes in world trade, heavy reliance on the European market (56% of Turkey’s textile exports and 66% of its apparel exports in 1999), and recent Asian and Russian crises also create uncertainty for the industry’s future. With the Customs Union agreement with the European Union that has been in effect since 1996, the industry was filled with great enthusiasm and exaggerated expectations. In this environment, the companies reacted to these challenges by substantial investment in production capacity without considering its impact and sources of financing. During 1990- 1995, the textile industry invested around $6 billion to purchase textile machinery. This made Turkey one of the largest customers of the textile machinery. However, this sudden increase in investments without coordination created an overcapacity in the sector. In addition to this overcapacity, stagnant European markets, depreciation of the Euro against the dollar, and rising production costs reduced the capacity utilization ratio for the textile industry from 81% in 1995 to 77% in 1998, and for the apparel industry from 90% in 1995 to 80% in 1998 [17]. This report presents an overview of the Turkish textile and apparel sector. In order to emphasize the position of the Turkish textile and apparel industry globally, Section 2 gives a summary of the industry’s imports and exports, major suppliers and customers, and the composition of the imports and exports in recent years. The Turkey-USA textile and apparel trade is analyzed separately in Section 3. The production capacity and the utilization of it in the textile and apparel industry are discussed in Section 4. Then the production numbers for fiber, yarn, and fabric output from cotton, woolen, and man-made sources and clothing are given together with the corresponding demand, import, and export figures in Section 5. The industry structure is discussed in Section 6. Section 7 analyzes the competitiveness of the industry by focusing on its cost structure, delivery performance, flexibility and quality. Finally, a brief assessment of the competitiveness and conclusions are given in Section 8.
Page 1 and 2: Harvard Center for Textile & Appare
Page 3 and 4: B.Tan Overview of the Turkish Texti
Page 7: B.Tan Overview of the Turkish Texti
Page 51: B.Tan Overview of the Turkish Texti

Harvard Center for Textile & Apparel Research

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?