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- 20 sectors' value report card
20 sectors' value report card
Ten sectors have been able to create an increase of more than 100 per cent in added value since 2002, In four of these sectors, the rate of increase is over 200 per cent.
Turkey has made rapid progress on the issue of added value production, particularly in recent years. The per kilo value of exports has doubled over the last 10 years to reach $1.58. But it take a lot of effort to raise this to $3 in order to achieve the target of $500 billion in exports in 2023.
Click image to see the table.
In fact, all of the strategies are being designed according to this. The only solution is to turn to R&D and technology. So which sectors have been more successful in this regard? Which ones still have some way to go? Here are the ten-year report card and evaluation strategies for 20 sectors, from furniture to clothing, automotives and leather.
THE MOST VALUABLE SECTORS
The study, which covered 20 sectors, shows that Turkey has made rapid progress in terms of the production of value, particularly in the last ten years. Ten sectors have been able to create an increase of more than 100 percent in added value since 2002, In four of these sectors, the rate of increase is over 200 percent.
The sectors which have recorded the greatest increase in per kilo value of exports are led by clothing and jewelry, Clothing has recorded an increase of 727 per cent, Over the last ten years, the value of per kilo exports of woven fabrics has risen by 2,888 per cent, Hikmet Tannverdi, president of the Istanbul ReadyMade Garment and Apparel Exporters' Association (IHKIB), explains the success that clothing has achieved as follows: “A lot of progress has been made in recent years.
But it is not sufficient, Our 2023 target is $60 billion, In order to achieve this, we need to increase our per kilo export price from $18 at present to $50 in 2023,” Another sector with the one of the highest increases in added value over the last ten years is chemicals with a rise of 167 per cent in per kilo value of exports. ~
But Istanbul Chemicals and Chemical Products Exporters' Association (IKMIB) Chair Murat Akyuz does not believe that this figure is enough, Akyuz says: “The high rate includes a dependence on abroad, We have made significant progress over the last ten years, Investments have been made and incentives applied.
We have also provided support, But this is a long-term process that takes time and patience, Our companies will increase added value and raise per kilo prices by emphasizing the production of chemical goods which are light in weight but high in value.”
THERE IS STILL SOME WAY TO GO
It is not just chemicals, there are also other sectors where there is still a long way to go in terms of added value production, For example, Fatih Kemal Ebiglioglu, chair of the Istanbul Mineral and Metals Exporters' Association, says that development is insufficient and adds: “The per kilo value of our exports is $6,75, In 2003 it was $4,56, There has been an increase in value over the last ten years. But we can raise this to even high levels, In order to contribute to achieving Turkey's target of $45 billion in exports in 2023, we need to focus on added value production.”
Furniture is another sector which has increased added value. Today the per kilo value of exports in the sector is around $3.7. Ten years ago, this figure was $1.6. The goal is to raise the per kilo value to $6.5 over the next ten years. Because this is the value of its rivals. In France the per kilo value is $6.7 and in Italy it is $5.9. Çilek Mobilya General Manager Muzaffer Çilek does not neglect to say: “Full speed ahead”.~
“On the world market, people have begun to buy low added value products from the Far East,” he says. “This has made Turkey more competitive when it comes to added value products. There are three main ways to increase value: investing in the brand, focusing on the consumer and innovation. We should continue along this road.”
THE ONLY SOLUTION IS R&D AND TECHNOLOGY
Experts and company executives are unanimous when it comes to the formula for increasing value. It is R&D, innovation, technology and design. This is the case in both pharmaceuticals and clothing...
For example, automotives is one of the most critical sectors when it comes to added value. Mehmet Dudaroğlu, chair of the Association of Automotive Parts and Components Manufacturers, says that in terms of creating value the sector is far above the Turkey average.
He adds: “Today, when all the sectors in Turkey are creating added value of $125 on production of $100, for every $100 production, the automotive sector creates an increase in production of $38.7 on top of that in other sectors. The spread of R&D centers has accelerated work in this regard.”
Pharmaceuticals is one of the first sectors that comes to mind when someone mentions added value. Osman Kara, board chair of the Association of Research-based Pharmaceutical Companies, says: “But, in terms of boxes, 26 per cent of the pharmaceuticals on the market are imported, while on a value basis it is 52 per cent.~
That is to say that locally produced goods have low levels of added value. There is no doubt the Turkey has significant potential in this regard. If the necessary steps are taken, we shall be able to transform the sector into one in which in 2023 production is over $23 billion and exports are $8 billion.”
OTHER STRATEGIES FOR ADDING VALUE
So, if this is the situation on a sectoral basis, how are things with the companies? What strategies have been followed by those who have been successful in increasing value? Bayraktar Otomotiv, which is the leader in the automotive lighting sector, is one of the companies that has increased value through the use of technology. Ahmet Bayraktar, the company’s board chair, draws attention to its investments in R&D.
“We are completely focused on high added value production. And we are succeeding,” he says. “We have increased the value of our products from €6.5 per kilo when we first started to €25.” The Aydınlı Group has moved from subcontracting to retailing and has achieved a 250 per cent increase in per unit value.
Aydınlı Group Chair Ömer Faruk Kavurmacı explains how they achieved this as follows: “Our vision was to become of the top three players in fashion retailing in Turkey’s neighbourhood. We emphasized R&D and innovation. Our design teams, architects and visual teams all really worked hard on this. ”
Click image to see the table.
In fact, all of the strategies are being designed according to this. The only solution is to turn to R&D and technology. So which sectors have been more successful in this regard? Which ones still have some way to go? Here are the ten-year report card and evaluation strategies for 20 sectors, from furniture to clothing, automotives and leather.THE MOST VALUABLE SECTORS
The study, which covered 20 sectors, shows that Turkey has made rapid progress in terms of the production of value, particularly in the last ten years. Ten sectors have been able to create an increase of more than 100 percent in added value since 2002, In four of these sectors, the rate of increase is over 200 percent.
The sectors which have recorded the greatest increase in per kilo value of exports are led by clothing and jewelry, Clothing has recorded an increase of 727 per cent, Over the last ten years, the value of per kilo exports of woven fabrics has risen by 2,888 per cent, Hikmet Tannverdi, president of the Istanbul ReadyMade Garment and Apparel Exporters' Association (IHKIB), explains the success that clothing has achieved as follows: “A lot of progress has been made in recent years.
But it is not sufficient, Our 2023 target is $60 billion, In order to achieve this, we need to increase our per kilo export price from $18 at present to $50 in 2023,” Another sector with the one of the highest increases in added value over the last ten years is chemicals with a rise of 167 per cent in per kilo value of exports. ~
But Istanbul Chemicals and Chemical Products Exporters' Association (IKMIB) Chair Murat Akyuz does not believe that this figure is enough, Akyuz says: “The high rate includes a dependence on abroad, We have made significant progress over the last ten years, Investments have been made and incentives applied.
We have also provided support, But this is a long-term process that takes time and patience, Our companies will increase added value and raise per kilo prices by emphasizing the production of chemical goods which are light in weight but high in value.”
THERE IS STILL SOME WAY TO GO
It is not just chemicals, there are also other sectors where there is still a long way to go in terms of added value production, For example, Fatih Kemal Ebiglioglu, chair of the Istanbul Mineral and Metals Exporters' Association, says that development is insufficient and adds: “The per kilo value of our exports is $6,75, In 2003 it was $4,56, There has been an increase in value over the last ten years. But we can raise this to even high levels, In order to contribute to achieving Turkey's target of $45 billion in exports in 2023, we need to focus on added value production.”
Furniture is another sector which has increased added value. Today the per kilo value of exports in the sector is around $3.7. Ten years ago, this figure was $1.6. The goal is to raise the per kilo value to $6.5 over the next ten years. Because this is the value of its rivals. In France the per kilo value is $6.7 and in Italy it is $5.9. Çilek Mobilya General Manager Muzaffer Çilek does not neglect to say: “Full speed ahead”.~
“On the world market, people have begun to buy low added value products from the Far East,” he says. “This has made Turkey more competitive when it comes to added value products. There are three main ways to increase value: investing in the brand, focusing on the consumer and innovation. We should continue along this road.”
THE ONLY SOLUTION IS R&D AND TECHNOLOGY
Experts and company executives are unanimous when it comes to the formula for increasing value. It is R&D, innovation, technology and design. This is the case in both pharmaceuticals and clothing...
For example, automotives is one of the most critical sectors when it comes to added value. Mehmet Dudaroğlu, chair of the Association of Automotive Parts and Components Manufacturers, says that in terms of creating value the sector is far above the Turkey average.
He adds: “Today, when all the sectors in Turkey are creating added value of $125 on production of $100, for every $100 production, the automotive sector creates an increase in production of $38.7 on top of that in other sectors. The spread of R&D centers has accelerated work in this regard.”
Pharmaceuticals is one of the first sectors that comes to mind when someone mentions added value. Osman Kara, board chair of the Association of Research-based Pharmaceutical Companies, says: “But, in terms of boxes, 26 per cent of the pharmaceuticals on the market are imported, while on a value basis it is 52 per cent.~
That is to say that locally produced goods have low levels of added value. There is no doubt the Turkey has significant potential in this regard. If the necessary steps are taken, we shall be able to transform the sector into one in which in 2023 production is over $23 billion and exports are $8 billion.”
OTHER STRATEGIES FOR ADDING VALUE
So, if this is the situation on a sectoral basis, how are things with the companies? What strategies have been followed by those who have been successful in increasing value? Bayraktar Otomotiv, which is the leader in the automotive lighting sector, is one of the companies that has increased value through the use of technology. Ahmet Bayraktar, the company’s board chair, draws attention to its investments in R&D.
“We are completely focused on high added value production. And we are succeeding,” he says. “We have increased the value of our products from €6.5 per kilo when we first started to €25.” The Aydınlı Group has moved from subcontracting to retailing and has achieved a 250 per cent increase in per unit value.
Aydınlı Group Chair Ömer Faruk Kavurmacı explains how they achieved this as follows: “Our vision was to become of the top three players in fashion retailing in Turkey’s neighbourhood. We emphasized R&D and innovation. Our design teams, architects and visual teams all really worked hard on this. ”
