İncetan stated that the sectors should be evaluated not only based on the number of employees, but also by taking into account labor, energy, financing and logistics costs, as well as international competitive conditions.
Rahmi İncetan, Chairman of the Board of ADMİB, said that support mechanisms should be shaped by taking into account the actual cost structures of the sectors in order for Türkiye’s exporting sectors to maintain their competitiveness in global markets.
Commenting on Trade Minister Ömer Bolat’s statement that foreign exchange conversion support for exporters will continue and that a new study will be carried out to enable labor-intensive sectors to benefit more from this support, İncetan stated that the iron-steel and non-ferrous metals sectors should also be supported at the highest level under the new regulation.
İncetan emphasized that exporting sectors should be evaluated not only based on the number of employees, but by considering production processes, labor and energy costs, and international competitive conditions together.
Cost Competition Is Becoming More Difficult in Global Markets
İncetan stated that Türkiye’s exporting sectors are facing significant cost pressures in global markets and said that competition is not limited to China, while some sectors face higher production costs compared with their European competitors.
İncetan said, “Today, we are having difficulty competing with China on price. However, the issue is not only China; in some of our sectors, we are facing higher production costs even compared with our competitors in Europe. We are both struggling with China’s low-cost production and losing our cost advantage against our European competitors.”
İncetan stated that rising costs cannot be reflected in product prices at the same rate, noting that buyers in global markets have many alternatives and therefore cost increases cannot be fully reflected in prices. İncetan said that this situation directly affects exporters’ profit margins and competitiveness.
Labor and Energy Costs Increase Pressure on Exporters
İncetan emphasized that, in addition to labor costs, energy, financing and logistics expenses are also decisive factors affecting industrialists’ competitiveness, adding that this impact is felt more strongly in energy-intensive sectors.
İncetan said, “Labor costs constitute a significant burden, but they are not the only factor. Energy costs also account for a significant portion of production costs. When labor, energy, financing and logistics costs are combined, the overall cost pressure on our exporters becomes heavier.”
İncetan stated that production costs are even higher than those of European competitors in some areas and said that they do not consider the current situation sustainable.
Production Costs Stand Out in Iron-Steel and Steel Door Manufacturing
İncetan stated that the iron-steel sector has a production structure requiring intensive labor and energy, and said that skilled manpower is needed at many stages, including cutting, forming, welding, surface treatment, quality control, packaging and shipment.
İncetan said, “Energy costs are also quite high. Therefore, the sector’s labor intensity and total production cost should be evaluated together.”
Drawing attention to the higher share of labor costs in steel door manufacturing, İncetan stated that there are many labor-intensive stages such as cutting, bending, welding, grinding, assembly, painting and accessory installation. İncetan said that due to increases in labor and energy costs, the sector is having difficulty achieving competitive prices in international markets.
Competitive Pressure in the White Goods Sector
İncetan stated that the white goods sector is one of Türkiye’s important export sectors and said that the sector is facing significant cost pressures.
İncetan said, “Our white goods sector is going through a really difficult period. Türkiye’s production infrastructure and export capabilities, built over the years, are extremely valuable. However, high labor and energy costs are challenging our competitiveness, particularly in European markets.”
İncetan also stated, “We have to protect our production capacity, employment and export markets.”
Emphasis on the Cost Structure of Sectors in Foreign Exchange Conversion Support
Sharing his expectations regarding the new regulation to be prepared by the Ministry of Trade, İncetan stated that the actual cost structures of sectors such as white goods, iron-steel, non-ferrous metals and steel doors, which face high labor and energy costs, should be taken into consideration.
İncetan stated that enabling these sectors to benefit from foreign exchange conversion support at the highest level would provide significant relief to exporters.
“Our demand is not for a privilege, but for competitive conditions to be evaluated correctly,” İncetan said, adding that in an environment where price competition with China has become more difficult and some sectors are producing at higher costs than their European competitors, any support that would reduce the pressure on exporters is of critical importance.
İncetan stated that these supports would contribute to achieving Türkiye’s export targets by preserving production and export capacity.
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