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August 20, 2025
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What’s happening to Turkish textile?

Turkish textile

Inflation, rising labor costs, and currency devaluation — all of these are hitting the heart of Türkiye’s textile industry. Production costs are climbing. Profit margins are shrinking. And manufacturers are moving operations abroad.

Key facts :

  • Inflation is over 75% YoY
  • In 2024, the minimum wage reached 17,002 TRY (approximately $520)
  • The Turkish lira has dropped to nearly 40:1 against the USD — making imports significantly more expensive
  • Electricity and logistics costs have increased 1.8× over the past year

The result :  A mass production exodus. Manufacturers are shifting operations to Egypt, Bangladesh, and Pakistan. Now, they’re eyeing Uzbekistan as a new production hub — especially for the CIS market. Meanwhile, Türkiye’s government is actively pursuing a “green economy” policy. Environmental protection has become a top priority. As a result:

  • It’s become very difficult to get permits for new dyeing factories
  • Polluting industries — especially textile dyeing — are being restricted
  • Environmental regulations are getting stricter

The outcome : many factories are relocating not only due to cost pressure, but also due to environmental policy. Why Uzbekistan?

  • Proximity to CIS markets
  • Lower labor costs
  • Cheaper energy and active government support
  • Faster ground shipping to Kazakhstan, Russia, Kyrgyzstan, and others

What is Türkiye at risk of losing?

  • Mass closures of small and mid-size factories
  • Hundreds of jobs lost weekly
  • Risk of deindustrialization in major textile regions
  • Possible loss of value in the “Made in Türkiye” label on the international stage

Will Türkiye remain a leading textile hub?

Possibly — but only for high-quality, designer, and luxury segments. The mass market is relocating — and likely won’t return. There’s only one rule in global manufacturing: go where it’s profitable. No emotions — just numbers. And right now, the numbers favor other countries.

In the coming days, Turkish companies will actively start entering Uzbekistan — opening wholesale and manufacturing operations. The process has already begun. I met with one of them yesterday. He opened a 600 m² warehouse and said the goods are already on the way. He plans to start production in Uzbekistan soon. In 10 days, another Turkish entrepreneur — a friend of mine — is arriving to explore launching his own production as well. We’re living through a historic shift in the global textile supply chain. Those who adapt — will lead.

News Courtesy : Mr. Shokhrukh Kayumov.

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