MANUFACTURERS WANT TO PRODUCE BUT CANNOT ACCESS FINANCING
TUYAD Chairman of the Board Hayrettin Özaydın stated that manufacturers, who form the backbone of production and employment in Türkiye, are facing some of the most challenging financing conditions in recent years. He emphasized that urgent support mechanisms must be introduced to ensure the sustainability of industrial production.
Özaydın noted that claims suggesting manufacturers sell their products on a cash basis to retailers, dealers, wholesalers, and distributors do not reflect the realities of the market. He explained that commercial activity is built upon deferred payments, open accounts, consignment sales, and commercial credit. In contrast, manufacturers are often required to purchase raw materials in advance before production can begin. As a result, they are forced to rely on bank financing at extremely high interest rates. Even when they are willing to accept these costs, access to credit remains difficult due to banks’ strict collateral requirements, including mortgages, assignments of receivables, guarantees, and similar security conditions.
Highlighting the growing burden of fuel, energy, labor, social security contributions, taxes, financing expenses, and raw material procurement, Özaydın stated that these factors continue to drive production costs upward, making it increasingly difficult for manufacturers to sustain their operations.
Recalling that approximately 15,000 companies have filed for concordat and withdrawn from production over the past five years, Özaydın stressed that the impact extends far beyond the affected businesses themselves. Through a multiplier effect, suppliers, subcontractors, logistics companies, raw material producers, distributors, dealers, and small businesses are also negatively affected. He noted that a single concordat process may economically impact an average of 150 companies, while placing the jobs of thousands of employees at risk.
Özaydın emphasized that filing for concordat is never a manufacturer’s first choice, but rather a last resort to keep production alive. Under the current economic conditions, he observed that many manufacturers are beginning to view closing their factories and placing their capital in high-interest financial investments as a safer alternative than continuing production. According to Özaydın, an economic structure that penalizes production while rewarding financial investments poses a serious threat to Türkiye’s industrial future.
Calling on the government to take immediate action, TUYAD Chairman Hayrettin Özaydın urged policymakers to facilitate manufacturers’ access to affordable working capital loans, reduce interest rates on production financing to reasonable levels, restructure collateral and guarantee requirements in favor of producers, and implement urgent economic measures to protect production, investment, exports, and employment.
Özaydın concluded by stating that a strong Turkish economy can only be built on a strong manufacturing base. Supporting manufacturers, he said, is essential for sustaining production, protecting employment, expanding exports, and strengthening the national economy. He added that this appeal is made not only on behalf of manufacturers, but also for all stakeholders throughout the production chain and for the future of Türkiye’s economy.
On behalf of the TUYAD Board of Directors
Hayrettin Özaydın
Chairman of the Board
