Pınar Taşdelen Engin - Letter From The Chairman
We provide services to the World, based on our developed infrastructure, promising targets and outstanding vision!
UTİB has turned out to be a remarkable indicator, depicting Turkey's general economic outlook. UTİB’s performance in 2019 also shows Turkey's total performance, while the targets of UTIB for 2020 could be regarded as a good indicator for the country’s targets as a whole.
As UTIB, we had a total export of USD 1.2 billion with a decrease of approximately 6% by the end of 2019. Turkey's textile sector exports is estimated to be around 8 billion dollars with a 6% decrease by the end of the year. I would like to emphasize the fact that not only UTİB and Turkey's textile exports but also the top 10 countries ( such as China, Germany, South Korea etc.) which export the most textile products in the world, have had a decreasing trend in their quarterly export volumes in 2019, compared to the previous year.
Being among the top four countries with the highest home textile exports in the World, and being Europe's largest manufacturer, Turkey’s home textile exports totaled around $ 2.7 billion by the end of the year. Turkey’s Home Textile sector, accounts for 4.5% of the total global home textile market, particularly focusing on middle and upper segment products of the sector. This fact clearly underlines the crucial role of our home textile industry in the world.
Germany, USA and the United Kingdom are the top three export markets of our home textiles.
We estimate that our exports to Germany amounted to approximately $ 465 million by the end of the year. Our exports to the US in 2019 will be about 300 million dollars. At the end of the year, we exported about 135 million dollars of home textile products to the UK.
We can also talk about new markets. As an example, we have increased our exports to Belarus by 98%, Yemen by 96%, Oman by 177% and Panama by 490%. These are our market entry moves.
We are now in a position to design, produce and develop in many sectors. Our goals and capabilities are far above the current trends. We want to reach the position that determines the standards, instead of complying with the existing standards, from the standpoint of world textile sector.
It is not enough to produce the best. In order to increase your competitiveness, you need to focus on the most efficient, greenest and most value-added production. We need to combine the experience of the previous generation with the future. Therefore, our R&D investments continue in a sustainable manner.
Focusing on the number of textile R&D centers in Turkey’s industrial sectors, we see that textile industry is among the top 5 sectors of the country with its 78 R&D centers.
We reap the fruits of this process. The average export price per kilogram in Turkey's overall exports is lower than 1.3 dollars. From this standpoint, Turkey's textile sector reached at $ 4 level, while the export unit price in textiles of UTİB is over $ 8.
In sub-groups, this figure can go even higher. For example, in home textiles, the value of our association per kilogram is 10 USD. Our export of clothing fabrics is around 12.5 USD.
We are very happy to have achieved this level by producing value-added products. In terms of the increase in the resources allocated to R & D, significant positive developments have taken place within the last 10 years in our country. In 2023, 1.8 percent of national income will be allocated to R&D, and most of this will be undertaken by the private sector. We believe that these targets will be an important driving force in the efforts to reach at the level of developed countries. Currently, this rate turns out to be 1 percent in Turkey, compared to 2.75% in the United States, 2.94% in Germany, 3.14% in Japan, around 4.29% in South Korea.
Looking at the export value per kilogram for technical textile exporting countries in the world, USD 8.05 in Germany, 6.25 USD in Republic of Korea, 8.96 USD in the United States, 3.08 USD in Turkey. We need to double this value in the medium term.
Our 2019 events
In spite of all kinds of negative political and economic turmoil, as UTIB we participated in many national and international events in 2019. In addition to the Bursa Textile Show, we had an efficient year in terms of competitions, training activities and conferences. We also represented Turkey in prestigious fairs such as Heimtextil Frankfurt, International Observatory Como, Intertextile Shanghai, Texworld Paris and Premiere Vision Paris.
Our 2020 targets
As Uludağ Textile Exporters' Association (UTİB), we aim to increase the total export volume of approximately 1.2 billion dollars at the end of 2019 to 1 billion 650 million dollars in 2020.
With its 13.1 billion dollars of textile imports and 18.7 billion dollars of exports, the US is the second largest exporter and third largest importer in the textile sector. UTIB’s exports to the United States was approximately $ 75 million as of the end of 2019. Turkey's textile exports to the United States is approximately $ 335 million in 2019. As UTIB, we exported textile products to the USA with an average value of 10 USD per kilogram in 2019.
Turkey's foreign trade with the US, and with the countries in which the US companies have their manufacturing has been following an increasing trend. So, the US and Turkey understand each other better than ever. In line with mutual trade sanctions and taxation attempts between the US and China since 2017, we needed to quickly evaluate opportunities for Turkey as a result of these developments. In this context, we continue to increase our efforts to develop mutual trade and cooperation opportunities.
Another important export market is Russia. Turkey's textile exports to Russia was more than $ 1 billion in 2011-13. In 2016, this figure had fallen to $ 57 million. In line with the upward trend in recent years Turkey exports to Russia totaled about 275 million dollars by the end of 2019. The positive trend in exports to Russia and the Eurasian Economic Union (EEA) region continues steadily. Our goal is to double our exports to this region. We are at a time when we need to carefully monitor and evaluate the developments in the Asian continent, especially in China. Recently, Bangladesh, Cambodia, Indonesia, Vietnam are the countries to which Turkey increases its textile exports.
The African continent should also be evaluated. In 2019, Africa was the second continent to which we exported the most. We are completing the year with over $ 162 million in exports to Africa. Morocco Tunisia and Egypt are the major African countries that import the most textile from us.
Our activities will continue to increase in 2020
In 2020, we will continue our national participation and info-stand activities in international fairs in important centers such as Frankfurt, Como, New York, Los Angeles, Portland, Paris, Shanghai and Moscow, as well as trade delegations, domestic fairs, competitions, training and conference activities.
Contract business trends of the future
Contract business management consists of planning, organizing and directing activities within the framework of a company's legal agreements with suppliers and customers. While the whole business world is involved with contract management, the opinions of business leaders about their legal relationships change for various reasons.
Contract business management will undoubtedly take shape in the future in parallel with technological and business developments. Companies that are able to adapt themselves to these trends will make successful contracts that will provide great benefits to their companies.
Trends in the construction of large projects always change. More practical, technological and conceptual applications are expected to prevail in the coming months. In the future, new technologies and competitiveness will shape this sector.
I wish all our trading partners and all our readers the best wishes in the new year.