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.