Machinery Parts Export
The machinery industry provides services in a wide variety of fields. Because the productivity and mobility of other sectors depend on the correct use of machines. Considering the scope of the study, it is necessary to examine the target country markets first. Target markets in the machinery sector and the potential of products to be preferred are taken into consideration. Afterwards, Turkey’s competitors in target markets and on product basis are identified and how they achieve success is researched. The current situation of Turkey can be understood by examining the competitiveness situation. Finally, it is possible to develop various strategies in order to highlight its competitiveness in the foreign market according to the way it operates in the Turkish machinery sector.
When we look at the machinery sector in Turkey, the sector structure consisting of SMEs is a factor that can provide operational flexibility and has positive results at this point, while this situation’s scale advantage, capital adequacy degree, access to finance, the amount of capital allocated to R&D studies and resources It is seen that there are constraints in terms of level of branding and branding process. It is possible to initiate the healing process when the right analysis opportunities are created.
Depending on the digital transformation, there is a need for machinery. Digital development processes that affect both socio-cultural and business life also renew the development process of machines. Turkey is always working to keep up with the digital transformation phase. The power of artificial intelligence in machine production is increasing.
Target Country
It is possible to identify the leading countries in the use of machinery and make them a target market. Various parameters in export markets are taken into account while analyzing target markets. Target countries are determined according to different macro and sectoral parameters. While focusing on the target countries, the factors that measure the competitiveness of the machinery exporters in Turkey according to the country to be sold are the factors that reveal the machinery demands and import potential of that country now and in the future. However, the opinions of authorized individuals in the sector are also important. In the results obtained at the end of the studies, the USA, Germany, China, India and Russia were determined as the target countries. Accordingly, the German market is a market where country concentration is less compared to other target countries.
Considering the input-output situations, the sectors that realize the highest amount of machinery demand in the target countries are given in the table below. According to the table, the demand for machinery in the target countries determined in the motor vehicles, construction and metal sectors varies between 26% and 42%. They have certain shares among these percentages.
After the target countries are determined, there are high potential products selected for these countries. Turkey provides development on the basis of machinery manufacturers in products with high potential. It is foreseen that there will be an increase of 9.6 billion dollars and 124% in machinery exports until 2030 in the five target countries.
Competitor Country
After identifying the products with high potential depending on the study, it becomes the competitor country that exports the most and best to the relevant country in each product group. Within the scope of this analysis, 5 countries were identified; USA, China, Germany, Czechia, Canada. There are two forms of analysis for competitor countries. At the first point, examinations are made as a result of the existence of competition in the competitor country, which determines the global competitiveness of the relevant competitor country. These aspects include economies of scale, technology, branding, financing and FDI. In the second part, competitive factors were taken into account by analyzing the competitiveness of the rival country in the target market. These factors are tariffs applied between countries, trade agreements and proximity to each other.
Strategy
It is extremely important to develop various strategies depending on the target market and competitor country. Turkey’s machinery exports carry the working system further by developing strategies suitable for competitiveness factors. There are all kinds of fields in machine production. Accordingly, it is necessary to produce fast and high quality in a way that can respond to customer requests. It is possible to have competitive qualities with the use of suitable raw materials and advanced manufacturing options, and the management during production. Considering the turnovers of companies working in machinery manufacturing and exports, the situation in Turkey is lagging behind compared to competitors. The machinery sector in Turkey is not in the desired position despite the advanced options. Although the Turkish machinery sector has a developed human structure and a solid production infrastructure, there is a great difference between it and its competitors.
The lack of scaling in the current structure causes problems in Turkish machinery production and export. There are two reasons for this; It is the way of doing business in companies and the state of ownership. Since easy production is realized in Turkish systems, employees open their own businesses when they become masters. The absence of certain rules and inspections for the realization of machine manufacturing causes the work to be copied. When the target market is taken into account, too many companies performing the same jobs are formed and the desired results cannot be obtained. The existence of family companies in the ownership structure, which is another element, indicates deterioration over time. These types of companies want to carry out their transactions without going out. As a result, cooperation between companies cannot be made and too much competition occurs. As a result, the profitability levels of the companies decrease. Economies of scale become irreversible.
Methodology
With the target market analysis, the situation in the machinery sector is examined. It is important to investigate the developments in Turkey’s machinery production and export, in order to carry out the necessary studies better. It is important for Turkey to be stronger in the competitive market by conducting data analysis and continuing the development by sharing the information of the authorities in the sector. In the studies carried out, the target country and product selection methodology, which was created in a multi-criteria manner in the machinery sector, was developed. There are reasons for using these methodology criteria in studies;
- Making necessary target market analyzes for the realization of machinery export; It has a complex structure depending on the demands and costs in terms of economic, social and political aspects.
- Methodology; It ensures that the employees have the necessary sensitivity for the creation of the working system. Authorities working in the machinery sector with valid knowledge and experience work for the development of the sector.
- Another opportunity provided by the methodology is to carry out analyzes at the sub-product level, taking into account the changing factors in product groups.
Target country determination is based on two main criteria expressing competition and potential indices. This is a multi-criteria selection methodology and based on the opinions of industry representatives.
After selecting the target countries, product types with high potential were determined. Sub-product groups are selected based on two criteria; In the first, besides the performance of exports in target countries in sub-product groups of the machinery sector in Turkey, market sizes in these products are also important. In the second, there are sub-product groups where we are more successful in exporting. For each product that passes the first factor, the effect of the market share we can reach in the target countries by 2030 on our ranking has been taken into account.
We, as SITM, are improving our working system in machine production and export. In addition, we follow our development stages by making our analyzes in target and competitor countries. We offer our products that we have prepared to meet the target market criteria. These are the steps that mobilize Turkish machinery exports. We carry out self-sacrificing works for the production of machine parts and exporting them to target countries. Machine productions are important for the operation of different sectors. For this reason, we produce parts for different types of machines. In addition, we export our machines with different features and offer them to the target countries. At this point, we support the development of Turkish machinery production. We carry out the inspection of each product by keeping up with the current rules.