In the last few years, the country of Turkey has been emerging as a leading economic player in manufacturing. With its strategic location, rich history, and cultural diversity, Turkey has gained increased popularity as a growing source for global supply to various countries including the United States.
Manufacturing
There are several promising sectors Turkey offers that can serve as a valuable start for American businesses looking to source products from abroad.
* full list of popular products in below chart *
Source: https://www.tim.org.tr/en/export-export-figures
The most popular manufacturing sectors in Turkey include:
- Textile and Clothing Industry: Turkey has a long-standing tradition in the textile and clothing industry. With its competitive prices, quality products, and well-established production lines, Turkey is a great option for businesses looking to source clothing and textiles. There are a variety of manufactures who offer a wide range of products including cotton, silk, wool, and synthetic fabrics. Including, Gülsan Sentetik Dokuma San.Tic.A.Ş. a leading textile manufacturer in Turkey.
Read More: In 2021, Turkey ranked as the world’s 5th largest textile exporter.
- Construction and Building Materials: Turkey is home to many companies specializing in the production of building materials, including but not limited to cement, concrete, ceramics, and construction machinery. Manufactures such as, ADO Group, are utilizing these raw materials to produce products such as flooring, doors, windows, and aluminum building materials.
- Automotive Industry: The automotive industry in Turkey is one of the most dynamic and rapidly growing in the world. The country has a well-established network of suppliers, manufacturers, and distributors, offering a wide range of products and services. Otokar Otomotiv ve Savunma Sanayi A.Ş. is one of leading automotive manufacturers in Turkey producing an innovative selection of buses and light trucks. But anything from passenger cars to commercial vehicles has been sourced there.
- Leather goods: Turkey is one of the largest producers of leather goods in the world. This is a booming and wide market in Turkey. With these manufactures like Desa Deri San. ve Tic. A.Ş. producing luggage goods, to others focused on bags, shoes and clothing.
Sourcing
Turkey is a growing hub for product sourcing. The most popular sourced products from Turkey are:
- Agricultural Products: Turkey is one of the largest producers of fruits, vegetables, and nuts in the world, and is known for its high-quality production of crops such as olives, figs, and hazelnuts. (Dried Fruits, Freeze dried fruits, Vinegar, Sauces, Olive and olive oil, Candies, Bouillions, Cooking spray, Confectionary, Turkish Delight, Spices like cumin, paprika and sumac…)
- Consumer Goods: The country is home to a number of well-known brands and is becoming an increasingly important center for retail and e-commerce. For example, Turkish towels, Turkish coffee, Turkish Ceramics, Turkish Delight, Turkish Rugs, Hazelnut, Halva, Olive Oil, Home Textile and so on…
image from: Flickr – Ersu
There are several competitive advantages for sourcing in Turkey as a USA-based company. Many include:
- Geographical location: Turkey is located at the crossroads of Europe, Asia, and Africa. Making it a strategic hub for global trade because it allows for easier and faster access to multiple markets.
- Diverse industries: Turkey has a strong and diverse industrial base. This allows for a wide range of products to be sourced from the country.
- Cost-effectiveness: Turkey offers a cost-effective alternative to other countries, particularly in terms of labor costs. Labor in Turkey is charged in Turkish Lira. The USD to Turkish Lira conversion rate currently is 1 Turkish Lira to 0.050 USD Dollar. A conversion rate difference like that can help to reduce production costs and increase profits for US based companies sourcing from Turkey.
- Developed infrastructure: Turkey has a well-developed infrastructure, including ports, highways, and airports, ensuring efficient and reliable logistics for product sourcing and import.
As expected, branching into a new country for import needs can get overwhelming. There are many things to consider from communication barriers to finding helpful resources on where to begin. Here are some helpful tips to utilize as you consider
Supplier Research: It is vital to conduct thorough research on a potential supplier. Things to consider would be; their reputation, reliability, and production capacity. We recommend checking online forums, trade associations, and government websites for more information.
- Ask Türkiye: Ask Türkiye is a database of Turkish exporters that can be searched by product, sector, and region. The registry is a valuable resource for businesses looking to connect with Turkish exporters and expand their global reach.
- Turkish Exporter: An export portal that is government supported out of Turkey. Its main purpose is to connect foreign buying leads to export orientated companies.
- Istanbul Exporters Association: Istanbul Exporters’ Association is a non-profit organization based in Istanbul, Turkey, representing exporters of various sectors. The website provides information such as market research, export training programs, and trade fair participation. It also features news and events related to the Turkish export industry.
- Türkiye Expoxters Assembly: Similar to the website above, it offers market research, trade statistics, and sectoral reports. Featuring news and events related to the Turkish export industry, as well as information on trade fairs and exhibitions. In addition, the website provides access to training programs, webinars, and networking opportunities for Turkish exporters.
Communication: Understanding local communication norms is key to successful product sourcing.
Make sure to have clear and consistent communication with suppliers to ensure that they understand requirements and expectations.
- Specific to Turkey, take the time to get to know your Turkish supplier on a personal level show interest in their culture, and try to establish a rapport.
- One way to do this is by engaging in small talk before getting down to business. Asking about their family, hobbies, or interests can go a long way in building trust and showing that you care about them as a person.
Another important cultural consideration:
- Use formal titles and address them with their last name until they invite you to use their first name.
Negotiation: When sourcing from Turkey, it is normal to negotiate. Buyers should work towards favorable terms with suppliers, including payment terms, lead times, and product quality. Hiring local sourcing talent to negotiate on your behalf is highly recommended.
Freight & Shipping
When it comes to shipping 40HC containers from Turkey to the USA, freight rates can be highly variable and depend on market conditions. For successful international trade, it’s crucial to stay informed about the market and work with experienced freight forwarders. Different companies may offer varying rates for the same shipment, so it pays to shop around and build relationships with reliable partners.
Turkey has four main international ports for shipping to the US: Istanbul, Izmir, Mersin, and Iskenderun. (Unfortunately, the recent earthquake has led to the temporal closure of the Iskenderun port). The difference in rates tends to be a variance of $500, so it is best to shop around.
Shipping from Turkey to the USA can be done by air or sea. The choice of shipping method will depend on the urgency of the shipment and the type of goods being transported.
- Air Freight: Shipping by air is the fastest option, but it is also the most expensive. Air freight is ideal for shipping time-sensitive goods, such as perishable items, high-value goods, or urgent orders. The shipping time for air freight usually ranges from 2 to 5 days.
- Sea Freight: Shipping by sea is the most common and cost-effective option. It’s ideal for bulky or heavy goods that are not time sensitive. The shipping time for sea freight is usually around 20 to 40 days depending on the type of route.
Port at Mersin Bay, Turkey
image from: Flickr – Photo Credit : Askimizdan Vazgecmicez
Turkey is a country that offers a wealth of opportunities for American businesses looking to source products from abroad. With its competitive prices, quality products, and well-developed industries, Turkey is a valuable resource for American businesses looking to expand their product portfolio and grow their business.
Empress team members Yasin Alkan and Tara Grace contributed to this article.