Automotiv_September

Monthly automotive aftermarket magazine
Turkey offers challenging opportunities
for global manufacturers
Tuğra Gönden, Cushman&Wakefield managing partner
According to Manufacturing
Risk Index 2018 research
carried out by the commercial
real estate consulting firm
Cushman&Wakefield, China has
maintained the lead in global
manufacturing, while Turkey with
a cost advantage, infrastructure
investments and geographical
location, has entered the top 10
in the world.
Withthe research, which examines
a range of risks and cost factors,
n the framework of research
including political and economic
risks as well as labor cost, a
comprehensive assessment of the
attractiveness of 42 countries for
global manufacturing was carried
out.
The report said the global
economy remains in good
shape despite the uncertainty
surrounding the future of U.S.'
trade policies, the shape of
Brexit in Europe and heightened
geopolitical risk in the Middle East,
parts of Asia and Latin America.
"Global GDP [gross domestic
product] growth is forecast to
accelerate to 3.2 percent in
2018 from 2.9 percent last year.
Multiple factors support this
outlook: The robust economic
fundamentals of the U.S., Europe
and China, a cautious monetary
policy by the major global central
banks and strong trade growth.
The global exports of goods are
expected to grow by 5.5 percent
in 2017 - their fastest pace in five
years - and by over 4 percent in
2018," the report read.
Industrial output in 2018 is
projected to increase by 3.8
percent globally - its fastest rate
since 2011 - and by 3.0 percent
in Europe, the report said.
It also suggested that economic
development and technological
trends will shape the type
and distribution of future
manufacturing, but the sector
will remain an engine of global
growth. By 2020, the report said,
manufacturing's share of the GDP
will exceed 20 percent in the top
60 largest global economies. In
China, manufacturing will still
account for a massive 30 percent
of the GDP in 2025. In the
eurozone, manufacturing makes
up 17 percent of the GDP, led by
Germany with over 23 percent.
The report revealed that wage
hikes and growing labor shortages
in Central Europe are pushing
more cost-sensitive industries east
to Lithuania, Romania, Bulgaria
and Turkey.
"Emerging manufacturing
locations in Turkey, Romania
and Bulgaria are increasing in
attractiveness based primarily on
cost," it added.
With infrastructure investments
and the strength of its
geographical location, Turkey
continues to be the leading
production base in the world.
Its cost advantage, infrastructure
investments and geographical
location has enabled the country
to enter among top 10 in the
world. In his assessment regarding
the report, Cushman&Wakefield
managing partner Tuğra Gönden
said economic, political and
technological developments
that have rapidly evolved have
affected countries' positions in the
production market.
Gönden also indicated that it is
possible with long-term structural
trends and strategic positioning to
ensure growth and sustainability
in an increasingly competitive
global manufacturing arena.
"Located at the intersection of
Europe, Asia, Russia and Africa,
Turkey's geographical location
and high-tech infrastructure
investments offer significant
advantages in terms of the
global manufacturing market.
Despite the geopolitical risks
faced, our country continues
to be the production base of
Europe and the world. I believe
that by correctly evaluating the
location and potential of Turkey,
the country will be a shining star
in production in the long term,"
Gönden said.
40 SEPTEMBER 2018