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Türkiye's machinery exports climbed to $26 billion in the first 11 months of the year, marking a modest 0.8% increase from the same period in 2024, as the sector navigated persistent global manufacturing pressures and shifting trade dynamics.
The consolidated export figure, which includes free zones, reflected resilience in pricing power even as shipment volumes declined 6.9% by tonnage, according to data released by the Machinery Exporters' Association (MAIB). Average prices per kilogram held at a historic high of $8.10, offsetting the volume contraction and driving value-based growth. Total machinery exports over the past 12 months through November reached $28.4 billion.
Germany remained Türkiye's top export destination for machinery, with shipments rising 5.3% year-over-year to $2.9 billion during the January-November period. The United States followed with $1.7 billion in machinery purchases, representing a 6.7% increase from the previous year.
Regional trade patterns showed divergence in neighboring markets. Exports to Iraq fell 8.4% to $670 million, while machinery sales to Syria surged 183% to $134 million, highlighting dramatic shifts in Middle Eastern demand.
MAIB Chairman Kutlu Karavelioglu pointed to ongoing challenges in global industrial production despite the controlled easing of monetary tightening policies worldwide. While acknowledging growing optimism for 2026 based on lower financing costs, he emphasized the need for Türkiye to secure its competitive position within European supply chains.
Karavelioglu referenced debates surrounding the EU's Industrial Acceleration Act, which aims to increase the European production rate of equipment to 70% in certain sectors. He argued that the bloc's approach to competitiveness requires a balance between protectionism and cost control.
"With the awareness that if one pillar of competitiveness is protectionism, the other pillar is cost control, the EU needs to include Türkiye in the 'Made in EU' definition as a strategic partner and Customs Union member," Karavelioglu said.
The machinery sector faces mounting competitive pressure from China, which has redirected exports toward European and Turkish markets following a 29% decline in shipments to the United States amid ongoing trade conflicts. Chinese machinery exports globally increased 8 percent, while shipments to Türkiye specifically jumped 13.4%, according to Karavelioglu.
China managed to generate a $1 trillion trade surplus by pivoting to strategic markets, including the EU and Türkiye, after U.S. trade restrictions took effect. The shift has intensified debates over unfair competition that now extend beyond pricing to encompass technology transfer, data security, and industrial policy frameworks.
Karavelioglu outlined a two-pronged strategy for navigating this competitive landscape: maintaining deep integration with EU industrial and supply chain networks while defending equal competition conditions, and systematically strengthening innovation, research and development, strategic technologies, and domestic production capacity to establish a sustainable balance with Chinese competitors.
Manufacturing data through October showed general industrial production in Türkiye increased 3.3% annually, while machinery production contracted 6.1%, revealing a significant divergence from broader manufacturing trends. Machinery and equipment investments rose 6.2% in the first three quarters of the year, yet capacity utilization rates fell to historic lows of 63.9% in October.
The gap between rising investment and falling capacity utilization suggests that machinery purchases are increasingly satisfied through imports rather than domestic production. Karavelioglu emphasized the urgency of policies to facilitate financing access, strengthen the investment climate, and reduce import dependency to preserve the sector's competitive edge and restore pricing power.
The producer price index for the machinery sector increased 29.6% compared to the previous year as of the end of October, adding cost pressures to an industry already navigating complex global trade dynamics and intensifying competition from lower-cost producers.
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