Strong alarms are resonating within the Turkish industry, according to the head of the Chamber.
In a recent statement, Erdal Bahcivan, the Chairman of the Istanbul Chamber of Industry (ISO), expressed concern over the ongoing struggles faced by Turkey's manufacturing sector. The sector has been experiencing a slowdown, as indicated by the Manufacturing Purchasing Managers' Index (PMI) dropping to 45.9 in July 2025.
This figure, according to Bahcivan, points to ongoing weakness in new orders and output, and the sharp decline in manufacturing new orders and output highlights weak demand as a key factor behind this decline. This continued slump marks the 16th consecutive month of deteriorating conditions in Turkish manufacturing, signaling a need for urgent intervention.
While the details of the proposed solutions by the Istanbul Chamber of Industry are not yet explicit, Bahcivan emphasized the importance of a new solution model to address the industrial challenges in Turkey. The model, being developed with a new generation understanding and perspective, is being created in consultation and dialogue with all solution partners, especially the political authority.
The overall industrial production rose 4.9% year-on-year in May 2025, driven by mining and manufacturing growth. However, the manufacturing sector itself has lost momentum recently. Bahcivan reiterated that the problems in the production life cannot be solved with memorized, habitual requests and demands.
Bahcivan also called for industrialists' voices to be heard and urgent action to be taken for solutions. He stressed that the industry has exceeded the limits of paying the price for the current conditions, and reaffirmed the industrialists' strong and self-sacrificing support to the country's fight against inflation.
The new solution model, once announced, is expected to focus on revitalizing demand and improving competitiveness to counteract the widening industrial slowdown. General strategies typically advocated by ISO and similar institutions include innovation support, increased investment in technology, export diversification, skill development, and policy dialogue with the government to stabilize the economic environment.
Forecasts expect PMI recovery to around 50.5 by the end of Q3 2025, indicating potential improvement with suitable interventions. This optimism towards gradual sector recovery with appropriate policy measures offers a glimmer of hope for the struggling manufacturing sector in Turkey.
- The ongoing struggles of Turkey's manufacturing sector, as highlighted by Erdal Bahcivan, the Chairman of the Istanbul Chamber of Industry (ISO), are causing concern due to the sharp decline in manufacturing new orders and output, which reveals weak demand as a key factor exacerbating the situation.
- The Istanbul Chamber of Industry is currently working on a new solution model to address the industrial challenges in Turkey, with an emphasis on revitalizing demand and improving competitiveness to counteract the ongoing industrial slowdown.
- The sharp decline in manufacturing new orders and output, according to Bahcivan, points to ongoing weakness in new orders and output, signaling a need for urgent intervention to stem the 16th consecutive month of deteriorating conditions in Turkish manufacturing.
- Bahcivan has emphasized the importance of hearing the voices of industrialists and taking urgent action to provide solutions, as the industry has exceeded the limits of paying the price for current conditions and is offering strong and self-sacrificing support to Turkey's fight against inflation.
