Türkiye’s textile stays resilient amid sluggish outlook, exporters assembly says

Despite growing concerns over rising costs, labor shortages, and declining profits in 2024, the textile sector remains one of the most vital industries in Türkiye, according to Fikret Kileci, chairman of the Türkiye Exporters Assembly (TIM) Textile and Raw Materials Sector Board.

As the textile sector faces a sharp downturn in exports in 2024, discussions have intensified within the Turkish business community about whether Türkiye should move away from traditional industries like textiles.

Commenting on the debates, Kileci highlighted Türkiye’s strong reputation in global textile production, stating, “The world’s leading brands manufacture in Türkiye. Players may change, but Türkiye’s position in the textile industry remains unchanged.”

“We must revise our business model. We need to focus on value-added production and collaborate with other countries in the labor-intensive aspects of the industry.”

‘The industry we know best’

Despite these challenges, Kileci emphasized the importance of considering not just textiles but also related industries such as ready-to-wear clothing, carpets, and leather. He noted that these four industries collectively hold the second-largest share of Türkiye’s export volume.

“We must never abandon this sector because it is one of the industries we know best, and we have made significant investments in it,” he said.

Kileci recalled that these four sectors once reached an export level of $35 billion but have now declined to the $31 billion to $32 billion range. However, he stressed that this downturn is not unique to Türkiye, pointing out that globally, the textile industry has contracted by 11%-12% due to shifting consumer habits, while Türkiye’s contraction has remained relatively lower at 7%-8%.

Calling for a cost-benefit analysis in the sector, Kileci further stated:

We need a transformation and must adjust our operations in line with labor costs. This is not something that only producers, industrialists, or exporters can achieve alone. We need to establish a long-term strategy supported by government initiatives and projects to facilitate this transformation.