Problems and Exports in Production

The crises in production negatively affect exports

The abnormal increase in raw materials prices in the world and in our country and problems with containers have negatively affected the production of some firms. In fact, some of the companies' customers had their orders canceled. The continued problems in the logistics sector and the increase in prices in raw materials by $70-75 per day also negatively affects growth in exports in the new era.

Increases in raw materials leave producers in a difficult position

On top of the problems with logistics occurring in the world and in our country, especially during the second period of last year, the abnormally price increase in raw materials prices is now making the jobs of producers and industrialists difficult. One of the biggest problems is that manufacturers are unable to supply empty containers and as a result, the density of the lines has increased costs 5-6 times. On top of that, the doubling of raw materials prices leads some manufacturers to halt their production. It is also known that the downturn of the dollar in recent days has negatively affected price competition between firms.

According to statements by OMS board member Talha Özger, the increase in the price of the 250-ton raw material supplied by him has cost them financially. There was a $70 increase in the tone of the 250-ton raw material I ordered. That's a total loss of $18,000," he added. Özger also said that the state could be supported by giving the manufacturer cheap loans to solve such raw materials problems. Another problem for industrialists is not finding empty containers. TIM sector member Rüstem Çetinkaya states that when no container related to this situation was found, there was a crisis in exports and the containers they ordered arrived late and did not come in sufficient numbers. Çetinkaya says that some buyers have cancelled their orders due to an abnormal degree of increase in raw materials, saying that as long as this continues, exports will be well below expectations.

 In general, sector representatives also have proposals for solutions to the problems. Here are the solutions;

• Should be supported by prioritizing domestic producers in raw materials
• Export firms and producers should be provided with freight support as well as ease of reduction in energy
• Manufacturers should be given cheap loans to provide support for raw materials purchases and to cover their losses from the increase.
• In order to increase production and supply process in the domestic market, raw materials producers must be given the necessary incentives.
• They should seek a solution to this problem by contacting nearby countries in order to ensure the empty container supply of the armatures.

For competition, the dollar must be at $7.40 and $7.70 levels.

Bülent Aymen, honorary president of the Mediterranean Paper Furniture and Forestry Exporters Association, says that it will not benefit them to have the dollar at too high or low levels for export, while the euro at 7.40-7.60 levels of the dollar should be around $8.80-9.10. Aymen says that the exchange rate should be at these levels in order to increase the competition in exports, and that the fact that the dollar is low during this period negatively affects the competition, this will again come back to the old levels and contribute 2% in exports. He also adds that in order to increase the growth in exports, the Central Bank must take all necessary measures to solve these problems.