MBA Endüstriyel Ürünler General Manager Mustafa Baha Akçura; Becoming a Manufacturer in Turkey;
Question: What are the advantages and disadvantages of being a producer in Turkey? Exchange rate, energy costs and raw materials, which have become chronic in recent years, must be the most important problem topics…
As MBA Industrial Products Marketing company, we produce products that appeal to the final consumer by using rubber and derivative products. These products are used as main and spare parts in machines. We are producing 100% domestically with our own production line and 900 square meters of indoor production area, and we sell our products both in the domestic and foreign markets. You’ve all heard of a syntax that says, “Buy and sell, fill your pocket, buy and produce fill your fame.” The producer takes part in the second part of this work. It takes the raw product, turns it into a working product and sells it to the customer. Merchant buys the ready-made product and supplies it to the customer who has agreed to buy it at a better price. It does not enter the production stages. He can follow the entire organization from his home or office. It stocks the products in a warehouse it maintains and can provide shipping via a forwarder. Because of these qualities, the ministry of industry does not depend on the ministry of environment. Only with the ministry of commerce and its registration there can it continue the business.
However, the manufacturer is not like that. The manufacturer is responsible for employing personnel. It has to ensure the social rights of the personnel it employs. He has to pay his salary on time. He has to be with him in good and bad days and make him feel his material and moral support when he needs it. In fact, even if these are not a necessity, Turkish culture and traditions advise us to apply them. What happens at the end of the day, graciousness and loyalty enable the people he works with throughout his working life to be attached to him wholeheartedly, and to manage in his difficult days. As a result, the funerals of people who employ people are often crowded because they have touched so many people. It is not enough for the manufacturer to employ only personnel, tools, equipment, etc. that these personnel will use. have to meet their needs financially as well. It should be up-to-date and fast enough to meet the requirements of the machine it uses. In order to procure a new machine when necessary, the correct management of its finances has to generate credit for itself.
Not only being able to buy the machine is actually a problem, but also being able to operate the machine, constantly supplying its raw materials, following the exchange rate of the supplied raw material, and reflecting this exchange rate difference to the customer will be waiting for the manufacturer as the next tasks. Unfortunately, it is not enough to buy the machine in Turkey. After the machine arrives, you need to process it in your capacity report. Of course, if you have a capacity report. If not, the situation is already much more complicated. You need to document the waste management and report it to the ministry of environment. You have to work with a consultant for this. Since you are hiring staff, you have to be ready in terms of occupational health and safety. It is important to have your documents ready, which should be in any bad situation. In this process, you will also be in contact with the fire department, you just need to be ready for the fire situation such as fire exits, fire corridors, fire tubes. You should be able to provide these emergency scenarios that I have mentioned, not only in terms of fire, but also in matters such as floods, tornadoes, civil war, and public order.
As you can see, being a producer in Turkey has many disadvantages. In addition to these, the product you produce in the market has to be competitive not only for the domestic market, but also for the international market. In other words, we can think of it this way, let’s say the main supplier country that has the largest market share of the product we produce is the manufacturers in China. Your competitor is now the products imported from there. Because the world is global now and everyone can see the price of everything and trade. Therefore, if the product you make is not the best in terms of price and quality, you cannot find an address to sell that product.
What we will say is that while it is so difficult to be a manufacturer in Turkey, if we want companies like us to increase in number and bring benefits to the Turkish economy, we should prefer domestic products.