Turkish Defense Industry Data for the year 2015

Date: Issue 72 - March 2017

The performance of the Turkish Defense Industry in 2015 was announced to the public with a report by the Defense and Aerospace Industry Manufacturers Association, (SaSaD) in the light of the data gathered from the companies that take part as manufacturers in the Defense Industry Sector.

According to data from the year 2015, the total of production and sales decreased slightly compared to the previous year. According to sector data, the decline compared to the previous year was due to the contraction in the domestic market, as well as the low sales caused by political reasons in the Middle East market. The report also noted that this situation is temporary and that this negative effect will gain positive momentum in the light of recent data. The amount of per capita turnover decreased compared to 2014; while the per capita turnover in 2014 was $163,273, this figure was $ 153,402 in 2015.

It is evaluated in the report that the total sales amount of the sector decreased by 2% compared to 2014, which means that the trend of increase in exports stopped and sufficient expansion in the internal market could not be achieved.

According to the data, the Turkish Defense and Aviation Industry exports were amongst the first 15 countries in the World Defense Industry exports, while the export figure of 2015 was realized as $ 1,665 billion. According to SIPRI 2016 data, Turkey ranked 12th in the World Defense Industry Country rankings. However, it is stated that the Undersecretariat for Defense Industries is behind the target of $ 2 billion for 2016. According to the Defense Industry Export Association figures, $ 1,655 billion revenue was achieved. In the light of these figures, exports of $ 1,929 billion were realized in 2015. According to the breakdown of exports, 30% of total exports were made to the US, 17% to Europe and 53% to other countries.

R&D expenditures in 2015 were $904 million, with a $ 21 million increase from the previous year. 616 million dollars of this figure were project incentives, while the remaining $ 287 million dollars were from equity sources.

The number of qualified personnel employed in the sector was disclosed as 31,375 people according to the 2015 data. According to the report, 34% of this figure is composed of engineers, which indicates the intensity of design and development activities.

Various indicative evaluations took part in the conclusion of the report. According to this, it was pointed out that that the Turkish Defense and Aerospace Industry has increased its competitive power in the world market with its indigenous products but it was considered that one of the major obstacles in the sector is the deficiency of the credit mechanism in the export markets.