How will the Turkish earthquake affect the global textile industry and supply chain?

How will the Turkish earthquake affect the global textile industry and supply chain?

On February 6, several strong earthquakes hit the southern part of Turkey near the border with Syria. Many people died, and a lot of property was destroyed.

As a result of the earthquake, the Turkish economy was also severely affected. In 2022, Turkey exported $34.4 million of textiles, a big part of the country's economy. Turkish textile and apparel exports in 2022 were $34.4 million. This earthquake might affect the world's supply system due to Turkey's location. Textiles are a significant export and production industry for Turkey. Borsa Istanbul said on February 7 that it would stop trading shares of companies badly affected by the earthquake. Companies provided precise information about how the earthquake affected them. Turkey's provinces were affected by the strong earthquake, which started in Kahramanmaras and spread to the coast.

Turkish textile news outlet Textilegence reported that eight textile and clothing companies had their stock trading banned. In addition to cotton and cotton textiles, polyester and related textiles, and other textile materials, these businesses sell to other textile material suppliers and foundries. Some clients are well-known European clothing brands like H&M, ZARA, Puma, Bobberley, and Louis Vuitton.

In 2021, Turkey will be the sixth largest exporter and producer of textiles and clothing, according to the Turkish Ministry of Commerce. The European Union is the third biggest buyer of textiles and clothing, and the Turkish textile industry is the biggest exporter of fabrics to the EU. Because of this, the country's textile industry is vital to the region.

Exports of textiles and apparel to the EU increased by 33.8% in 2021, reaching a record $129 billion. Textile retailers sell Turkish cotton woven fabrics, knitted or crocheted fabrics, floor coverings, tapestries, tablecloths, and home textiles on the international market.

The closure of the Turkish textile industry would therefore have a significant impact on downstream businesses. On the first day after the earthquake, a spokesman for the IHKIB Istanbul Textile Exporters Association (the Istanbul Apparel Exporters Association) stated that the organization was attempting to determine the earthquake's potential impact on the textile and apparel industries. At the same time, these companies stopped trading stocks so they could figure out how much damage the strong earthquake had caused.

In what ways has this affected the global textile industry?

Because the textile sector is primarily located in the Istanbul region, a spokeswoman for IHKIB said: "We do not anticipate (the earthquake) to have a significant impact" (on the Turkish textile industry). However, we are still working to determine the exact impact of the earthquake.

In the past few years, several European and American companies have taken part in the reorganization of the global supply chain. Istanbul's textile industry handles some orders for European brands that have moved from the old production area.

Turkey's commercial and political hub is its most significant metropolis. Also, Istanbul has been the center of the country's textile industry for more than a hundred years. In Istanbul, which is where important land and sea trade routes meet, there are a lot of businesses that work with textiles, make clothes and trade.

In its 2022 Textile Industry Report, the Turkish Ministry of Commerce notes that most textile companies have relocated production to the provinces. Istanbul has become a fashion and shopping hub that includes nearby Bursa and Tekirdag, as well as cities in northwest Turkey like Denizli. These are the largest textile and apparel production centers in the country. The textile industry in Istanbul says that about 75% of the country's exports are textiles and clothing.

Since the center of the earthquake was near the Gaziantep district of Kahlaman Marash province, it is unlikely to have big effects right away on Istanbul or the textile industry in the northwest of Turkey.

Turkey's earthquake-affected region of Gaziantep has recently grown to be a significant textile sector. CCFgroup reports that 7% of Turkey's textile enterprises and workers are from the area.