A blow to the textile sector!

The textile and ready-to-wear sector, one of Turkey's strategic production areas, experienced a serious contraction in 2025. High inflation, rising production costs, and implemented economic policies have brought firms in the sector to the point of bankruptcy, while the difficulties experienced have also been reflected in unemployment figures. Burak Sertbaş, President of the Aegean Ready-Made Clothing and Apparel Exporters' Association, said, "When we look at the labor figures, there is a loss of employment close to 300 thousand. This already shows the closures and bankruptcies that have been ongoing since 2022."

2025 BECAME A 'YEAR OF CONTRACTION' FOR THE SECTOR

Stating that 2025 will be remembered for the contraction in the sector, Sertbaş said, "The sector is standing, but it is trying to hold on. There are liquidations; when we look at Turkey as a whole, there are indeed liquidations, concordats, and those closing down. There are those fleeing Turkey. That is a more painful event." Stating that the sector is still trying to survive, Sertbaş noted that they are progressing with a 7 percent deficit in terms of exports and said, "In this environment, I see a 7 percent deficit as a success. It looks like we will close the year like this as well."

Emphasizing that the bankruptcies and concordat declarations in the sector occurred due to the impact of the economic environment, Sertbaş said, "We are experiencing a different economic conjuncture. Inflation has broken our backs. As a country accustomed to living with low inflation for years, the sudden surge in inflation has upset all balances." Furthermore, stating that most firms in Turkey procure their inputs from local sources, Sertbaş expressed that the sector feels this situation more acutely. "I cannot say it is anyone's 'own fault.' There is a bad path that the economic conjuncture has given them," he said.

EMPLOYMENT LOSS REACHED 300 THOUSAND

Stating that the closures in the sector have caused a loss of employment, Sertbaş said, although they do not have precise data, "When we look at the labor figures, there is a loss of employment close to 300 thousand. This already shows the closures and bankruptcies that have been ongoing since 2022." He expressed that this situation shows the sector is going through a difficult period and that the same problems will continue in the coming years.

2026 WILL BE DIFFICULT, RELIEF EXPECTED IN 2027

Sertbaş predicted that 2026 will be a challenging year for both consumers and industrialists. "As long as inflation rises, the consumer will continue to struggle. 2026 will be difficult for all of us, but I see this as a year of transformation. I think there will be a relief both politically and economically in 2027," he said. Stating that the ready-to-wear sector is indispensable for Turkey, Sertbaş said, "Ready-to-wear is a sector that Turkey cannot give up. We are in a very strong position in the world in terms of both employment and quality. No other country has this infrastructure. I hope we stay standing and our path opens up."

News Source: 12punto