The Benefits of Outsourcing Forging to Turkey

In recent years multiple Eastern European, East Asian and Latin American countries have diversified their economies by planting new forging facilities within their borders. Low labor costs and increasingly friendly international trade relations have resulted in fierce competition for the traditional forging centers in Western Europe and the United States. Despite the lower prices offered, emerging forging markets lack one vital asset, experience.

A problem for purchasing managers now exists when high-quality end-products are demanded or strict delivery schedules must be adhered to. Due to pricing gaps, the abundance of low-cost forging shops led to the closures of experienced forging shops at staggering rates.

The demand for high-quality forged products and the necessity to fulfill inflexible delivery schedules still exists. Firms not willing to sacrifice quality and logistical matters now have fewer options. Purchasing managers must now look for experienced forging shops with production costs comparable to those of emerging markets.

Turkey is a unique find in the forging arena. Its first private forging facility, Çelik Sanayi, was founded in 1959. Many other forging shops were founded thereafter, allowing Turkey to become a top subcontractor for forgings throughout modern history. The nation’s forging sector’s long history places it in a position that rivals Western Europe and the United States. Furthermore, the low cost of production allows its forging facilities to compete with the newly emerging markets. For this reason, multiple forging shops of all sizes thrive in Turkey.

Another unique quality of the Turkish forging industry is its workforce. Turkey’s youth is highly educated, creating a large supply of new Engineers to staff the local forging facilities. Additionally, since Turkish forging companies have existed for nearly 50 years, there are numerous individuals willing to contribute a lifetime of experience.

Along with Turkey’s goal to join the European Union comes the necessity for rapid investments in technological upgrades across the manufacturing sector. Turkish companies are currently experiencing a golden era of upgrades and refurbishments. This allows Turkey-based forging facilities to offer clients the best services through continuously reaching and exceeding the standards required by the most regulated companies in both the EU and the United States.

Turkey’s location also offers a strategic geopolitical advantage. Turkey is in the close proximity of Europe, Asia and the Middle East, allowing for reductions in shipping costs and times. Additionally, Turkey enjoys the benefits of multiple trade agreements between the EU and the United States. For example, the United States has ratified an agreement allowing for no taxes on imported steel products from Turkey. Turkish forging facilities offer the best of both worlds, low prices and superior quality.