Turkey's New Approaches in the Production Process

Turkey’s New Approaches in the Production ProcessThe phenomenon of globalization in the world cannot be considered separately from the growth strategies of companies and the international economic planning of countries. In this process, developing countries, just like companies, need to review their production strategies.

Accordingly, nation-states initially focused on agriculture-based production and later built a new order based on industrialization. Countries that led the Industrial Revolution developed rapidly, and subsequently sold the machines and spare parts they produced to underdeveloped or developing countries, providing training on how to operate them. In other words, the pioneers of the industrial revolution created nations that would provide cheap labor as subcontractors and assembly producers.

This was by no means a negative process, because the countries that led the industrial revolution exported industrial production to underdeveloped nations—even if only in the form of assembly or subcontracted work—creating employment for millions of people and generating new business areas and sub-sectors.

Turkey, due to its geographical proximity to Europe, became an advantageous example, especially in the textile sector. China, on the other hand, was chosen as a subcontracting base by major textile and technology producers, and later leveraged the know-how it gained to become a leading producer competing globally. This is why China is considered the largest example of transitioning from subcontracting to an industrial revolution.

Recently, there has been criticism in Turkey regarding large textile producers moving their production bases to countries like Egypt, Bangladesh, and Myanmar. Economic policies are being questioned, but we must first foresee that a country cannot continue indefinitely as a subcontracting and assembly-based economy if it wants to grow. If countries persist in such employment and production models, their development process cannot be completed.

In Turkey, we observe that the textile sector, along with other assembly and subcontracting industries, is shifting toward what we call “light in weight, heavy in value” production areas. Meanwhile, unskilled labor is being replaced by skilled and technically trained employees, transitioning production toward value-added sectors. The defense industry provides the best example of this evolution.

As Turkey discovers more of its underground and surface resources, we will collectively witness the rapid industrialization of these sectors. By processing our resources—from rare earth elements to boron—we can achieve a major economic leap similar to China. Of course, training skilled technical teams is crucial; without proper management and leadership, the outcome could be disastrous.

Currently, Turkey is striving to embrace the “Digital Industry” concept, making investments and initiatives in this direction. In this new era called the Information Age, societies and states that cultivate software expertise, human-centered conscious structures, and the ability to read global markets and seize digital opportunities will gain power, and geographical or mental boundaries will become irrelevant. Those who can harness these digital opportunities will hold influence in the next century.

As humanity creates new values, old governance models and corporate structures are undergoing transformation in response to evolving markets. Industry 4.0 will usher in a new phase, redefining everything. Developing countries that miss this transition may have to wait for another opportunity to grow and gain influence. To avoid missing these processes, the new initiatives and strategies I mentioned earlier are essential.

At this point, Turkey has started striving to break this cycle and avoid falling behind in the new era of change. The contribution and influence of the Turkish state and business leaders in preparing for this new period is clearly visible. Supporting companies and organizations active in sectors such as mining, defense, energy, food, and water resources is highly important. This strategic approach should be considered a fundamental responsibility for both individuals and the nation, in terms of our present and future. Investors and workers alike must recognize that production in Turkey is evolving, and we must plan accordingly.