Turkey’s Textile Industry Faces Severe Crisis

The Turkish news outlet Türkiye Today reports a gloomy outlook for the country’s textile industry in 2025. So far this year, about 300 companies have filed for bankruptcy protection, and 300,000 jobs have been lost.

1. Worst Recession in 20 Years The industry is experiencing a “structural collapse” rather than a temporary downturn. Major causes include a drop in export demand, rising production costs, and a shrinking labor supply.

2. Drastic Cut in Production and Exports

• Production: Many factories in major textile hubs (like Istanbul and Bursa) are running at only 30-40% capacity, with some closing down entirely.
• Exports: Combined exports of textiles and apparel dropped to $24.1 billion (as of Nov 2025), a 23.6% decline from the 2022 peak.
• Competition: Turkey is losing its price advantage to Asian competitors like China, Bangladesh, and Vietnam, who benefit from lower labor and energy costs.

3. Business Districts Facing Closures Famous textile trade zones in Istanbul (Merter, Osmanbey, Laleli) are seeing mass closures. This is due to fewer foreign buyers (especially from Russia and Ukraine), shifting purchasing behaviors, and regional security concerns.

4. Labor Shortages

• Syrian Refugees: Many Syrian workers, who were a key part of the low-cost workforce, are returning home.
• Younger Generation: Turkish youth are increasingly unwilling to work in the textile sector, worsening the labor gap.

5. Industry Strategy and Future Outlook

• Exit Strategy: Many manufacturers are leaving the textile sector to invest in more stable industries like logistics and warehousing.
• Chain Reaction: Experts warn that one bankruptcy affects hundreds of upstream and downstream suppliers, threatening the entire supply chain.
• Transformation Needed: The industry urgently needs a new roadmap focusing on technological transformation, brand value, technical textiles, and sustainable production to regain long-term competitiveness.

***Photo Reference: https://www.intellinews.com/bankruptcy-woes-threaten-turkey-s-textile-industry-297595/***