Turkish mechanical engineering industry
Poor order situation and lack of capacity utilization
MAKFED, the umbrella organization of mechanical engineering associations in Turkey, conducted a survey among its members in the last week of March.
According to the survey, only 20% of companies were producing at full capacity. 44 percent were operating at less than half capacity and 20 percent of companies had suspended production completely.
This is due to the order situation. At the time, only 40% of machine manufacturers had orders for the next three months, 38% still had orders for around one month and a tenth of companies had no orders at all. Accordingly, only 38 percent were able to keep their employees fully employed.
A good start to 2020
Despite rising prices, the Turkish mechanical engineering industry got off to a good start in 2020. Exports rose by 7% in January and 5% in February, while March still saw an increase of half a percent.
Although Turkey has made good progress in reducing the foreign trade deficit to USD 5 billion, no further successes were recorded in terms of import figures. Imports rose by 16 percent in the first few months. With four of the five most important markets, which account for 40 percent of orders, under quarantine restrictions, the Turkish mechanical engineering industry has had to curb its expectations and production. Current orders have been spread over time and capacities have been reduced.
As of April 12, Turkey's total exports had fallen by 9.5 percent, machinery exports by 5.9 percent. The situation is more dramatic in the automotive and steel industries. Here Turkey has recorded a decline of 18 percent.
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