Manufacturing in Turkey: Benefits and Drawbacks
As one of the most diversified countries to source from, Turkey provides a wealth of prospects due to its strategic location on the crossroads of Asia and Europe. We’ll go over some of the advantages as well as some of the drawbacks of Manufacturing Turkey.
What are Turkey’s primary industries?
Turkey can create a wide variety of goods. Vehicles, machinery (including computer components), gems and precious metals, knits and clothing, iron and steel, electrical machinery and other equipment, non-knit clothes and accessories, iron or steel articles, plastics, and related products, and mineral fuels, including oil, are among the top ten exports.
Vehicle exports account for 15.2 percent of Turkey’s overall exports, with the country’s automobile manufacturing industry valued at 23.9 billion dollars. While machinery accounts for 8.8% of exports worth $13.8 billion, mineral fuels, including oil, account for 2.8 percent of exports worth $4.3 billion and are ranked number 10 on the export list.
Products range from ceramic sinks, door pulls and handles PVC cling film. Antiseptic wet wipes are primarily exported to the United States. In contrast, Germany, another major export destination, has a higher need for toilets and seats, seat covers, metal poles, and leather notebooks. Turkey is also a sourcing destination for numerous products in the United Kingdom, Spain, and Hong Kong.
What are the benefits of manufacturing in Turkey?
Its well-established and diverse manufacturing sector, Turkey, has significant advantages for anyone wishing to manufacture there. Turkey’s geostrategic location is a big plus, with an extensive network of shipyards and a port structure that allows commodities to be moved out to Asia and Europe relatively quickly. Turkey’s trade agreement network is part of this geostrategic dividend with a customs union with the European Union and free trade agreements with more than 20 nations.
Turkey also has a labor force that is young and well-educated. Not only does Turkey have a skilled pool of engineers, but it also attracts top executives with substantial international experience, which is likely a result of the country’s strategic location. Turkey has a reputation for considering brand image while delivering speed-to-market and high-quality final goods for sourcing firms because of its large pool of qualified talent.
Because of their capacity to form solid partnerships with Turkish producers, a rising number of American firms are having high-quality leather purses made in Turkey. Turkey has a considerable competitive edge due to its combined expertise of different production capabilities, brand comprehension, brand-building, and product destination market.
A competitive foreign currency exchange rate is added to these advantages, making Turkey’s price point a plus for most firms.
What are the issues of manufacturing in Turkey?
Manufacturing in Turkey is still fraught with difficulties. These include a slightly increased political risk, so security concerns may make it challenging to visit firms frequently even if production facilities are trustworthy. Currency fluctuations are also something to keep an eye on. Even though it tends to stay competitive, the variances can result in very different price points at other times.
Other issues to consider are language and cultural barriers, which can arise when manufacturing occurs outside of the brand’s home country.
How do you ensure product quality and compliance?
With so many manufacturers to select from, determine which one is best for your sourcing needs. In Turkey, risks such as ensuring supplier compliance and reliability and controlling quality assurance must be handled by Supplier or Quality Control Parties. Industry Istanbul provides the following services:
Verification and auditing of suppliers’ quality
Because visiting your suppliers can be difficult, especially when travel is almost impossible due to COVID-19, it’s critical to find a factory that can meet your project’s needs. Third-party inspection service in Turkey can provide important information from an initial supplier review through a one-day on-site assessment. This includes the essential components of the Quality Management System, as well as equipment, facilities, records, and certifications, as well as general capabilities. A report with the factory images, a brief assessment of the supplier’s strengths and weaknesses, and a suggestion on the supplier’s risk rating are sent to the sourcing agent with relevant information.
There is a menu of different audit solutions that can be implemented based on the product categories for import. Buyers of medical devices, for example, might consider performing ISO 13485 audits (requirements for a quality management system that demonstrates an ability to provide medical devices that meet customer and regulatory requirements). Buyers of car parts should check whether their potential supplier follows ISO 9001, IATF 16949 (quality management system for automotive-related components), or VDA 6.3. (a process audit assessing the entire life cycle of a product manufactured for the automotive industry).
2. Inspection Services Provided by Third Parties in Turkey
In Turkey, third-party inspection services are essential for verifying that product quality criteria are met before shipment. This service verifies that the product meets the manufacturer’s specifications and detects any defective items before dispatch. Inspectors from the third-party inspection agency are dispatched to the facility for a factory audit to ensure that craft, functionality, packaging, labeling, shipment amounts, and other requirements are met. This allows for the early detection, containment, and resolution of any quality issues in the manufacturing cycle.
Manufacturing in Turkey will be safer with the lead of Industry Istanbul
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