Demand from Germany and BRIC states is slowing, pushing Germany's machinery and equipment industry to turn its focus to Turkey for assistance. The time is now for Turkish companies to expand to Germany, according to Germany Trade & Invest experts.
Machinery is currently the leader over all other goods imported by other countries from Germany, including Turkey which imports 36% of its machines from Germany, according to the industry association VDMA.
"Germany is traditionally one of the most important destinations for Turkish FDI. The two countries have inseparable ties that span several decades. With Turkey's booming economy and Germany’s reputation for high quality machinery, the timing couldn't be better," said Jerome Hull, machinery industry expert at Germany Trade & Invest in Berlin.
Trade isn't the only thing Turkish companies are looking to Germany for.
"The Made in Germany label is one of the keys to success in this industry. A growing number of companies from rapidly developing countries like Turkey are interested in investing in Germany to obtain that seal of quality for their products," Hull said.
There has been an upward trend in FDI from Turkey in Germany and over 40% of Turkish investment projects in western Europe have moved to Germany since 2003. There are approximately 600 Turkish companies that are currently registered in Germany.
"Just as Turkey is a hub between Europe and the Middle East, Turkish companies can invest in Germany and serve the entire European market from a central location," Hull said.