23008_Nearshoring Report

TÜRKIYE

• Similarly locating the manufacturing of machinery, electric & electronic goods in Türkiye has been driven by the lower transport costs (especially as these are often bulky and heavy items), shorter lead times and greater flexibility in ordering and specification, particularly as these products need to be built to specific technical standards for the European market and. • Turkiye has also benefited from growth in consumer goods manufacturing as part of strategies to diversify supply (either in whole or in part to add supply chain resilience and reliability) and the fact that it offers opportunities to reduce transport distances, environmental impact and cost. • Key locations for production operations are concentrated in the north of the country, as well as to the west and south

• Low costs, close proximity, free and open trade with Europe and an investment-supportive environment mean that Türkiye has secured significant investment from foreign businesses establishing production facilities and supplier relationships. • Türkiye is now one of the world’s largest producers and exporters of textiles and apparel with Europe its largest trade partner. Lower costs and close proximity (meaning shorter order lead times and transport times and lower transport costs) as well as the opportunity to more easily monitor for impact, including worker conditions and environmental impact of manufacturing operations make Turkiye attractive for this sector. • Exports of automotive products is now the largest element of trade between Türkiye and Europe. The growth in the making of vehicles in Türkiye for export has been driven by the lower costs and

• In terms of key transport gateways and corridors to and from Türkiye, goods will be moved in a combination of different modes and routes. Key seaports in Türkiye are located close to key production areas in the North, the West and the South. Gateway ports into Western, Southern & Northern Europe are within the Mediterranean as well as key Northern European ports. Rail connected warehouses in Türkiye could be attractive as an alternative to road particularly for heavy, bulky goods like machinery, electricals and automotive components. The majority of freight transported in Türkiye, however, is still moved by road . Goods moving from Türkiye by road will naturally pass along corridors leading through CEE countries and on to Western European countries. This increased volume of goods moving by land from Türkiye through CEE countries could well lead to strategies to locate or relocate major distribution hubs along these corridors

supportive investment environment but also the burgeoning production ecosystem of suppliers, knowledge and skills

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