Turkey Exceeds Defense Export Target as Industrial Capabilities Continue to Grow
April 30, 2019 | IHS MarkitEstimated reading time: 2 minutes
The latest analysis from Jane’s Defense Budgets, a product from business information provider IHS Markit, highlights that Turkish defence exports have exceeded their $2 billion target, with sustained success in export markets aided by enhanced investment in defence research and development.
“Turkey exceeded its 2018 $2 billion target in aerospace and defense exports, with continued development of markets in the Gulf, Asia and Africa furthering this upwards trend”, said Charles Forrester, senior defense industry analyst at Jane’s by IHS Markit.
“As the country develops new technologies—ranging from rail guns and missiles to electronic warfare systems—its overall competitiveness will increase on the global market. The ongoing improvement in other core technology programmes, such as armoured vehicles and remote weapons stations, will also serve to maintain pace in global markets for lower cost, high technology solutions.”
Turkey’s Core Defense Budget More than Doubles since 2015
Turkey’s core defence budget has doubled in nominal terms since 2015 to reach TRY46.5 billion (USD8.1 billion) in 2019, although Jane’s notes that the addition of extra-budgetary items brings total related spending in 2019 closer to TRY64.5 billion (USD11.2 billion). However, in real terms, the defence budget has increased by one fifth since 2015 as increases were tempered by high rates of inflation.
“Persistently high levels of inflation combined with a significantly weaker lira present significant challenges to the Turkish defence budget,” said Fenella McGerty, principal analyst at Jane’s. “Inflation (CPI) is projected to reach 18% in 2019, while the lira has halved in value against the dollar since 2015.
Turkey invests 5% of annual defence spending to research and development which is one of the highest proportions globally and has served to bolster domestic capabilities. The focus on self-sufficiency has mitigated some of the fallout from a weaker lira as the country relies less on imported material.”
What’s Next for Turkish industrial Capabilities?
“Collaborative projects derived through the country’s highly successful offset programme will also build-out Turkish industrial capabilities in the future”, Forrester said. “The initiation of domestic programmes, such as the TF-X fighter aircraft, will help to advance domestic technical capabilities to give a degree of parity with other Western states.”
The country is continuing to work on improving its self-sustaining capabilities by increasing the indigenous content of equipment operated by its armed forces, with the government claiming to have reached a local content level of 65% in 2018.
As major programmes, such as the Altay main battle tank, take shape and enter into the manufacturing stage, Turkey’s self-sustaining capabilities are expected to increase as the value of domestic products rises over time.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Suggested Items
Cicor Records Solid Growth in Q1
04/16/2024 | CicorThe Cicor Group continued to grow in the first three months of the year. Quarterly sales increased by 11.8% to CHF 107.3 million compared to the first quarter of the previous year (Q1/2023: CHF 96.0 million).
TT Electronics Awarded Contract with Kongsberg Defence and Aerospace
04/11/2024 | TT ElectronicsTT Electronics, a leading provider of global manufacturing solutions and engineered technologies, announced today that its Fairford UK business has been awarded a new contract with long-standing customer Kongsberg Defence and Aerospace (Kongsberg) for the production of complex cable harness solutions.
Cicor Successfully Completes Acquisition of TT Electronics IoT Solutions Ltd.
04/03/2024 | CicorThe Cicor Group has successfully completed the acquisition of TT Electronics IoT Solutions Ltd. with three production sites in the UK and China.
Absolute EMS Successfully Recertifies ISO 9001:2015 and AS9100 Standards
03/26/2024 | Absolute EMS, Inc.Absolute EMS, Inc., an award-winning EMS provider of turnkey contract manufacturing services, is proud to announce the successful recertification of its ISO 9001:2015 and AS9100 Rev D SAE International Aerospace Standards.
Arlon EMC Receives IPC-4101 QPL Recertification
03/20/2024 | Arlon Electronic MaterialsArlon Electronic Materials has successfully completed an intensive two-day recertification audit by IPC Validation Services that examined Arlon’s manufacturing processes and testing procedures to assure that they are in conformance to the requirements of IPC-4101E-WAM1, the Specification for Base Materials for Rigid and Multilayer Printed Boards.