Azernews.Az

By Burak Karaca

Türkiye’s machinery manufacturing industry recorded $13.8 billion in consolidated exports during the January–June 2026 period, including shipments from free zones, according to data released by the Machinery Exporters’ Association (MAİB).

During the first six months of the year, the sector also achieved a significant increase in export value, with the average export price per kilogram rising 11% to $8.70, reflecting a shift toward higher value-added production.

Germany remained the industry's largest export destination, with shipments totaling $1.7 billion, representing an 8.7% year-on-year increase. The United States ranked second after recording the strongest growth among major markets, with exports surging 33.9% to $1.2 billion. Italy, the United Kingdom, and Spain completed the list of the five largest export markets for Turkish machinery.

Among product categories, turbines, turbojets, and hydraulic cylinders posted the strongest export performance, with overseas sales increasing 25.6% compared with the same period last year. In contrast, exports of leather processing machinery declined sharply by 35.3%, marking the weakest performance among major machinery segments.

Commenting on the latest figures, MAİB President Sevda Kayhan Yılmaz said geopolitical uncertainty has become an increasingly permanent feature of the global economy, fundamentally reshaping industrial investment decisions and international supply chain strategies.

She noted that rising geopolitical tensions—particularly the confrontation between the United States and Iran—have intensified existing structural challenges facing European industry, especially manufacturers in Germany.

Yılmaz explained that while traditional industrial sectors continue to experience contraction and employment losses, defense-related manufacturing has expanded as governments increase military spending. According to her, this trend demonstrates that both global capital flows and state investment priorities are undergoing a rapid transformation.

Referring to the NATO Summit held in Ankara, Yılmaz said the signing of multibillion-dollar multinational procurement agreements confirmed that the global economy has entered a new era characterized by what she described as "security-oriented industrial consolidation."

She emphasized that the emerging global fiscal framework—shaped by NATO members' objective of increasing defense and security spending to 5% of gross domestic product by 2035—could generate an unprecedented wave of industrial orders and investment opportunities for Türkiye's manufacturing sector.

"Reconstruction budgets are channeling substantial resources into a broad range of strategic areas, from cybersecurity and digitalization to critical infrastructure investments and the expansion of defense industries," Yılmaz said. "At the same time, these expenditures are serving as a new growth strategy for European industry, which has struggled for years with economic stagnation and deindustrialization."

According to Yılmaz, Türkiye is well positioned to transform this evolving geopolitical environment into a strategic advantage. With its growing industrial capacity, the country has the potential to become a key manufacturing and logistics hub for a wide range of defense products, including armored vehicles, missiles, unmanned aerial systems, and conventional weapons.

She argued that current ammunition shortages and the ongoing expansion of military production capacity across allied countries present a historic window of opportunity for Türkiye's machinery industry to move into a significantly higher position within the global military-industrial value chain by supplying advanced, high-value manufacturing technologies.

Yılmaz also stressed that participation in profitable, long-term international defense projects will depend on the industry's ability to fully comply with the strict technological standards and regulatory requirements demanded by the defense sector.

She added that deeper integration into European defense supply chains would significantly enhance the Turkish machinery industry's capabilities in quality assurance, product traceability, cybersecurity, and manufacturing standards.

Although certification and accreditation procedures may initially appear challenging for small and medium-sized enterprises (SMEs), Yılmaz said these processes will ultimately drive a lasting transformation that strengthens the industry's long-term international competitiveness. She underlined that continuous government support will be essential throughout this transition.

At the same time, Yılmaz acknowledged growing concerns over the broader economic consequences of rising global defense expenditures. She emphasized that the ultimate purpose of building a strong defense industrial base is not to encourage conflict, but rather to reinforce deterrence and preserve peace and international security.

Concluding her remarks, Yılmaz expressed hope that the advanced technologies developed by Türkiye's machinery industry would never have to be used on the battlefield. Instead, she said, these investments should be viewed as an essential safeguard for lasting peace, regional stability, and global security.