Industry Focus

2018-2023 Q1

Turkish Fastener Trade Analysis
Introduction1
Türkiye, a transcontinental country straddling both
Europe and Asia, has witnessed remarkable economic
growth in recent years. As a result of its strategic geographic
location and booming manufacturing sector, the country
has become a significant player in the global fastener trade.
Based on World Bank’s report on 10 April 2023, Türkiye
is the 19th largest economy in the world, with a GDP ofroughly US$906 billion. It is a member of the OECD andthe G20, and an increasingly important donor of Official
Development Assistance. Türkiye pursued ambitious reforms
and enjoyed high growth rates between 2006 and 2017 thatpropelled the country to the higher reaches of upper-middleincome status and reduced poverty. The share of people
below the US$6.85 per day poverty line nearly halved to
9.8 percent between 2006 and 2020. However, productivity
growth has slowed as reform momentum has waned over the
past decade, and efforts have turned to supporting growthwith credit booms and demand stimulus, intensifying
internal and external vulnerabilities. High private sectordebt, persistent current account deficits, high inflation,and high unemployment have been exacerbated by macrofinancial instability since August 2018. In an extension of thestrong COVID-19 pandemic recovery, the economy grew at
5.6 percent in 2022. However, the economy has been losing
momentum amidst a deteriorating external environment andheterodox monetary policies. Two devastating earthquakes
struck on February 6th, 2023: beyond the human tragedy,
physical damage in 11 provinces accounting for 16.4 percent
of Türkiye’s population and 9.4 percent of its economy.
Direct losses are estimated at US$34.2 billion, but thereconstruction needs could be double. The earthquakes

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Fastener World no.202/2023 惠達雜誌

added pressures to an increasingly fragile macro-financial situation.
Pre-election spending and reconstruction efforts are expected to support
growth, which is forecast at 3.2 percent in 2023 and 4.3 percent in 2024.

Growing Fastener Industry in Türkiye
The fastener industry in Türkiye has experienced substantial growthin the past decade, driven by factors such as increased manufacturing
activities, infrastructure development, and rising demand from domestic
and international markets. The country's reputation for producing highquality fasteners at competitive prices has positioned it as a preferredsupplier for various industries worldwide.
Over the past decade leading up to 2021, the fastener industry in
Türkiye experienced substantial growth and development. Türkiye has
a diverse manufacturing sector, which drives the demand for fasteners.
Industries like automotive (With the industry recovering fromthe pandemic, the country's export value increased again in 2022
compared to the previous years and reached almost 31 billion U.S.
dollars. In the same year, Ford Otosan became the leading motor vehicle
manufacturer based on export quantity, with a volume of 198 thousandunits.) 2 , construction (Türkiye's construction market size was
US$103.9 billion in 2022. The market is projected to grow at an AAGR
of more than 2% during the period 2024-2027, supported by investments
in transport, renewable energy, and housing infrastructure projects3.),
and machinery (Machinery is the second largest sector in Türkiye'sexport. In 2022, Türkiye 's machinery exports reached $ 25.5 billion.
The machinery sector contributed 10 percent of Turkey's totalexports. 4), are among the key consumers of fasteners.
1

https://www.worldbank.org/en/country/turkey/overview
https://www.statista.com/topics/10619/automotive-industry-inturkey/#:~:text=With%20the%20industry%20recovering%20from,volume%20
of%20198%20thousand%20units.
3
https://www.globaldata.com/store/report/turkey-construction-marketanalysis/#:~:text=Turkey's%20construction%20market%20size%20
was,energy%2C%20and%20housing%20infrastructure%20projects.
2Industry Focus
experienced a significant rebound in 2021 and 2022, reaching
282,830 thousand USD. The decline in exports in 2019 and2020 might have been influenced by various factors, such as
economic fluctuations, changes in market demand, or competitive
challenges. However, the substantial increase in export in 2021
and 2022 indicates a strong recovery and a potential reinvigorationof trade ties between Turkey and Germany.
France: Fastener export to France showed a fluctuating pattern
throughout the five years, with exports increasing from 16,641 in2018 to 42,997 thousand USD in 2022. The average annual growthrate over this period was approximately 26.3%, showcasing
significant growth in exports to the French market. Despite
fluctuations, the overall trend indicates a positive and steady
expansion of Turkey's fastener exports to France.
Italy: Exports to Italy remained relatively stable during thefive-year period, with minor fluctuations. The growth rate wasmoderate, with an average annual increase of about 25.1%. The
significant increase in 2022 (US$ 39,329,000) compared to 2018
(US$ 16,184,000) suggests that Turkish fasteners are gaining
traction in the Italian market.
USA: Fastener export to the USA experienced remarkable andconsistent growth throughout the five-year period. The exports
increased from US$ 8,486,000 in 2018 to US$ 37,840,000 in
2022, with an average annual growth rate of approximately 46.5%.
The rapid growth in exports to the USA indicates strong demand
for Turkish fasteners in this market and successful penetration byTurkish manufacturers.

Export and Trade Partnerships
Türkiye's participation in various trade agreements andpartnerships has significantly contributed to its fastenertrade growth. The country has signed preferential tradeagreements with multiple countries, reducing trade barriers
and facilitating smoother access to foreign markets.
Moreover, its membership in the European Customs Union
allows Turkish exporters to benefit from easier market
access to European Union countries.

Importers
World

2018

2019

2020

2021

2022

470,141 487,336 446,478 645,840 803,915

Germany 181,919 167,845 147,548 231,642 282,830
France16,641

27,056 22,224

31,04842,997

Italy

16,184

16,11316,086

25,68639,329USA

8,486

18,754

20,12728,95937,840Note: Numbers are in thousand USD.

World: Türkiye's fastener export to the world witnessed
substantial growth during the five-year period, increasingfrom 470,141 in 2018 to 803,915 thousand USD in 2022.
The average annual growth rate over this period wasapproximately 14.4%, indicating a strong and consistent
expansion of Turkey's fastener industry in the global market.

Conclusion
The quarterly analysis of fastener exports to the worldindicates a dynamic and competitive industry in Türkiye. The
positive growth in exports during most quarters suggests thatTurkish fastener manufacturers are gaining prominence in theinternational market and meeting the global demand.

Importers Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
World

196,331 206,662 201,938 199,053 215,212

Germany

66,24374,297

72,46969,82978,064

France10,632

10,223

10,151

11,984

12,649

USA

7,154

9,945

11,135

9,605

11,759Italy

10,963

10,761

9,872

7,733

9,265

Note: Numbers are in thousand USD.

The dip in exports observed in Q3 and Q4 of 2022 could be
attributed to various factors, such as changes in market demand,
economic fluctuations, or supply chain disruptions. The strong
rebound in exports in Q1 2023 indicates the resilience of theindustry and its ability to quickly recover from any temporary
setbacks.

Germany: Fastener export to Germany started at 181,919
thousand USD in 2018, declined in 2019 and 2020, and then4

Article by Sharareh Shahidi Hamedani
Copyright owned by Fastener World

https://www.turkishmachinery.org/En/AboutTurkishMachineryIndustry#:~:text=Machine
ry%20is%20the%20second%20largest,percent%20of%20Turkey's%20total%20exports.

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