Turkish Textile Industry Faces Production Collapse and Export Crisis: Çorlu‑Çerkezköy Summit Sounds Alarm

Turkey's textile locomotive is edging toward a breaking point as production shrinks and export revenues tumble.

Çorlu‑Çerkezköy Summit: The Industry's Red Alert

■At the Textile Summit Workshop co‑hosted by the Çorlu and Çerkezköy Chambers of Commerce, sector leaders warned of a potential 30% contraction in output.

■Participants stressed that simultaneous declines in production, employment, and foreign trade could undermine the backbone of the Turkish economy.

Employment and Production: A Sharp Decline

■Over the past three years, textile employment has been hit by 62% increases in insurance and depreciation costs, driving overall cost pressures to 25‑55%.

■If current trends persist, the sector faces a 30% drop in output and a 20% loss in jobs.

Cost‑Currency Shock: What Companies Are Enduring

■While the exchange rate has risen 150%, production costs have surged 400%, eroding profit margins to below 5%.

■Rising expenses for textile chemicals and energy have further squeezed margins.

Strategic Takeaways and Policy Recommendations

■Industry calls for new incentive packages and a higher foreign‑exchange conversion rebate (raising it from 3% to 5%).

■Diversifying into alternative markets (U.S., Africa) and high‑value technical textiles (airbag, medical) is deemed essential.

■Strengthening production infrastructure and easing the Employer Severance Burden are critical for sustainable growth.

Dr. Aslıhan Demir: The textile sector is a cornerstone of Turkey's trade balance; the current cost‑currency mismatch threatens not only the industry but also inflation and the current‑account dynamics. Without swift, targeted stimulus—particularly tools that mitigate exchange‑rate risk—the projected 30% contraction could evolve into a macro‑economic shock. Policymakers should align incentives with a quality‑driven shift toward high‑value technical textiles to preserve long‑term competitive advantage.