Sector representatives warn that if the current trend continues, up to 30% of businesses could close by the end of the year.
Cost and Exchange Rate Pressure
Increases in energy, rent, and labor costs have significantly reduced the profitability of producers and retailers. Uncertainty in raw material prices has further complicated the process, forcing many companies to downsize and shift toward contract manufacturing.
Chairman of the Merter Industrialists’ and Businesspeople’s Association (MESİAD), Gürbüz Oruç, stated that most companies in the region are struggling to survive, adding: “Production volumes have decreased, and the number of shops for rent has visibly increased.”
Call for Incentives
Chairman of the Laleli Industrialists’ and Businessmen’s Association (LASİAD), Gıyasettin Eyyüpkoca, told Dünya Newspaper that they recently conveyed the sector’s problems and proposed solutions directly to the relevant ministry officials. Eyyüpkoca emphasized that if 5th and 6th Region incentives are increased, companies could continue production in Türkiye instead of relocating abroad.
Closure Rates Increasing
Since the beginning of the year, the closure rate among textile businesses in Merter has reached 10–15%. Oruç noted that this rate could rise to 30% by year-end, warning: “This will not only affect the regional economy but also negatively impact commercial activity throughout Istanbul.”
According to sector representatives, urgent measures such as rent subsidies, reducing the tax burden, lowering cargo costs, providing low-interest loan packages, and ensuring exchange rate stability need to be implemented to prevent closures.
Global and Regional Impacts
Political developments in the Middle East, the economic downturn in Russia, and global economic uncertainties are adversely affecting trade in export-oriented regions like Laleli, Osmanbey, and Merter. Eyyüpkoca stated: “Consumers are worried, and shopping habits are changing. The business world does not like uncertainty; companies that cannot foresee the future are acting much more cautiously.”
“The Last Breaths Are Being Taken”
Sector representatives state that companies producing for stock cannot manage costs unless they can make accurate future projections, and as a result, they are using up their last resources. Eyyüpkoca summarized the sector’s situation by saying: “So to speak, the last breaths are being taken.”
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