The economic problems experienced in 2024, the tight monetary policies implemented as part of the fight against high inflation, the difficulties in accessing financing with high interest rates put the welding machinery sector under pressure. Despite this, Vega Makina General Manager Serdar Selim Sezgin stated that they are hopeful for 2025 and said, “With the shipyards whose investments are about to be completed in the Black Sea Region starting production, we anticipate that our sector will achieve at least 3 times the growth of the country average in 2025.”
The welding machinery sector started 2024 with the impact of high inflation carried over from 2023 and the 49 percent minimum wage increase that occurred as a result. The tight monetary policy implemented for the rest of the year narrowed domestic demand, while investments almost came to a standstill due to high interest rates. Vega Makina, the pioneer of the sector with its position as a general supplier serving almost the entire manufacturing industry, determined its 2025 growth target as 10 percent in foreign exchange terms, despite the impact of the tight monetary policies in 2024 on the market.
The sector’s expectations for 2025 are positive
Stating that welding machines and components, which are a general supplier serving almost the entire manufacturing industry, are among the product groups most affected by investment materials, Vega Makina General Manager Serdar Selim Zengin said, “There is a serious loss in our profitability due to increasing general expenses and the decrease in turnover. The contraction in the industrial production index this year led to a 10-12 percent shrinkage in the welding sector. However, sectors such as construction, automotive, automotive sub-industry, air conditioning and the defense industry, which have been developing rapidly in recent years, stand out among the areas where demand is relatively more vibrant despite the negativities in the economy.”
Growth potential of at least 3 times the national average in 2025
Sharing his expectations for 2025, Zengin said, “We think that the demand dynamism in sectors such as construction, automotive, automotive sub-industry, air conditioning and the defense industry will continue to increase. We anticipate that there will be a leap forward, especially in the construction sector, with the commissioning of investments postponed by the public and private sectors. In addition, with the commencement of production in the shipyards whose investments are about to be completed in the Black Sea Region, we can achieve at least 3 times the national average growth in the resource sector in 2025,” he said.
The contraction in the domestic market has increased the interest of Chinese manufacturers in Turkey
Zengin, who mentioned that the contraction in the domestic market has increased the interest of Chinese manufacturers in Turkey, made the following assessment on the subject: “Turkey has become a very attractive market for Chinese manufacturers due to the current conditions. Thanks to our strategic proximity to Europe, Africa, the Middle East and the Near East, Turkey is a country where Chinese companies look favorably on cooperation opportunities. We see that very serious offers have been made to our domestic companies that have been cooperating with Chinese manufacturers for about 20 years.”
“We support domestic manufacturers”
Zengin, who stated that they approach these offers positively as Vega Makina, said, “We evaluate all offers with care. However, we have postponed our investment decision for a while due to the difficult process and are waiting for now. “During this period, we have decided to support local manufacturers who have developed their business and products and can produce in the quality and features we want, and who are suitable for our company structure. In this way, local companies will be more comfortable in terms of sales and financing and will focus on developing their products further, and we will get through this stagnant period more easily,” he said.