Recently, we have been closely observing that many companies in the apparel and textile sector have started to shift their production to Egypt.

Recently, we have been closely following the fact that many companies in the clothing and textile sector have started to shift their production to Egypt. As clothing machinery manufacturers serving these companies, we cannot remain indifferent to these developments. If the main manufacturers are moving to Egypt, it is inevitable that we, as the sub-industry providing services to them, will also be involved in this process.

As KOMİD – Clothing Machinery Manufacturers Association, we feel the need to make this statement based on our personal experiences in the field as a group that has been actively producing in Egypt since 2004. We have recently observed that many machinery companies are working to establish production or sales infrastructures after their customers have moved to Egypt. However, we would like to underline at this point that the Egyptian and generally African markets do not have the same conditions as the Turkish market.

Machine manufacturers considering investing in Egypt need to analyze the country’s customs system, business culture and local workforce dynamics well. Investments made by comparing them with the conditions in Türkiye may lead to serious disappointments. Statements such as “We are forced to manufacture in Egypt” have been encountered in different geographies before. For example, we have all seen that many companies that turned to Serbia with similar statements returned unsuccessfully.
We believe that statements such as “Egypt is 30-40 years behind us” coming from some institutions today mislead the sector. In our opinion, this is a dangerous approach that could cause complacency towards the Egyptian market. Today, there are many strong companies in Egypt that produce shirts, jackets and trousers for the world’s leading brands and that also use our machines.

It should not be forgotten that the average labor cost of companies doing contract manufacturing worldwide is around $500. This figure has risen much higher in Türkiye. Therefore, it should be accepted that Türkiye needs to get out of the contract manufacturing model. At this point, it is another fact that state support cannot be continuous and unlimited. How much support can be provided is another topic of discussion.

On the other hand, we predict that Syria will soon be among the countries with a say in this market. Indeed, before the Arab Spring, many children's clothing manufacturers, especially in Bursa, were directing their contract manufacturing to Syria.

As a result, we believe that statements made without realistic, field-based and sound analyses of the Egyptian market will mislead our sector. As KOMİD, we are following this process carefully and respectfully announce to the public that we will continue to share guiding information for our members and the sector with our experience in the field.

Haluk AKIN
Chairman of KOMİD Board of Directors