DEFENSE AND AEROSPACE MANUFACTURERS ASSOCIATION · Defense and Aviation Industries Association...
Transcript of DEFENSE AND AEROSPACE MANUFACTURERS ASSOCIATION · Defense and Aviation Industries Association...
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Defense and Aerospace Manufacturers Association
Defense and Aviation Industry
Performance Report
DEFENSE AND AEROSPACE MANUFACTURERS ASSOCIATION
2013
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Defense and Aerospace Manufacturers Association
TABLE OF CONTENTS
1. ABOUT SASAD
2. PREFACE
3. ABOUT THE PERFORMANCE REPORT
4. SALES
4.1. Overview
4.2. Sub-sectors
4.2.1. Turnover Per Capita
4.2.2. Shares of Sub-sectors in Total Turnover
4.2.3. Direct Contribution Shares of Employees working in Sub-Sectors to
Their Relevant Sectors
5. ORDERS RECEIVED
6. EXPORT
6.1. Distribution of Exports
7. IMPORTS
7.1. Distribution of Imports According to Sub-sectors
8. PRODUCT AND TECHNOLOGY DEVELOPMENT
8.1. Product Development
8.2. Technology Development
9. EMPLOYMENT
10. GENERAL OVERVIEW
11. COMPANIES CONTRIBUTING TO PERFORMANCE DATA
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Defense and Aerospace Manufacturers Association
1. ABOUT SASADKIN
Defense and Aviation Industry Manufacturers
Association was founded in 1990 and since then it
has been serving to the manufacturers and
organizations operating in the fields of Land, Naval,
Air, space and security with the mission of
contributing to the development and strengthening
of the industry.
SASAD is involved in various activities and initiatives so
that its members can operate in a more suitable job
and work environment. It tries to solve the industry
related problems by presenting them to the attention
of the relevant authorities and represents all the fields
of the industry both at home and abroad.
SASAD, is an active member of European Aviation, Space and Defense,
Security Organization and contributes to shaping the views and
recommendations of the industry in European Union Committees through this
organization. It supports the international expansion of its members through
protocols signed with similar institutions of the countries.
SASAD has 130 manufacturers and organizations and 4 conglomerations
under its roof. According to the 2013 performance report, US $5 billion of sales
(turnover), $1.4 billion of exports and 32,000 employees contribute directly to
the country's economy.
S
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Defense and Aerospace Manufacturers Association
2. PREFACE
2013 Industry Performance Document is composed of performance data
of 65 members responding to the survey form prepared by SaSaD. The
performance data of our members that has commercial confidentiality is
treated as confidential information and not shared with third parties except
the Secretary General's Senior Management. It is determined that the
performance of 70 firms responding to our survey constitutes 90-95% of the
total performance of the industry and thus this report is considered to reflect
the data necessary to analyze the performance of the Turkish Defense and
Aviation Industry.
We present our gratitude to our respondents. We believe that the report
prepared with their contributions will be valued by our sector players and
decision makers.
In addition, industry performance data will be shared with European
Defense and Aviation Industries Association (ASD) and reflected on European
Union platforms.
Our press also uses our similar reports widely in the industry news and this
report will be shared with the Turkish Public through the media.
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Defense and Aerospace Manufacturers Association
Turkish Defense and
Aviation Industry
Performance Report 2013
3. ABOUT THE PERFORMANCE REPORT
Like every year, Defense and Aviation Industry Manufacturers Association
(SASAD) measures the performance of the Turkish Defense and Aviation
Industry with the data collected from the member companies, institutions,
and organizations and releases to the interested parties for review after
coordination with the Under secretariat for Defense Industries.
The Performance Report is deepened this year to include the sub-
sectors. In this context, the following areas are considered;
• Land Platform Manufacturers
• Naval Platform Manufacturers
• Aviation and Space System and Subsystem Manufacturers
• Electronics
• Electrics
• Informatics
• Rocket Missile Weapons and Ammunition
• R&D and Engineering
• Machine, Mold, Spare Parts
• Clothing, Apparel
• Other Manufacturers and Institutions
This will provide the opportunity to conduct an in-depth investigation of the
sub-sectors in the coming years.
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Defense and Aerospace Manufacturers Association
Data collected from 65 SASAD Members (The list of the Companies,
Institutions, and Organizations is in attachment A.) includes the main subjects
of;
• Sales,
• Export,
• Import,
• Product Development Expenditure [Equity and Customer / Public Incentives (R&D)]
• Technology Development Expenditure (R&T)
• Employment
The turnover and export data in the field of civil aviation and space is
included in the performance (turnover) as of 2009 and the foreign currency
generating services of the companies and organizations is included as of
2013.
When an overall assessment of the year 2013 is made, it can be
concluded that the industry continued its uptrend that it had caught at the
beginning of the year 2000, its Total Sales (Turnover) continued to increase, it
benefited more from R&D incentives and it achieved a great success
especially in the field of exports. On the other hand, import continues to
decline every year. The entire dollar values mentioned in the report is defined
as "US Dollar".
Turkish Defense and Aviation Industries Performance of the year 2013 is
presented in the following table as a summary before proceeding to the
detailed descriptions.
AREA OF PERFORMANCE
Billion Dollars
Billion Euros
Sales 5,076 $ 3,822 €
Export 1,569 $ 1,181 €
Import 1,326 $ 0,988 €
R&D Expenditure 0,926 $ 0,697 €
Employment 32,368 People
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Defense and Aerospace Manufacturers Association
4. SALES
4.1. Overview
The total sales of World Defence and Aviation Industry gradually
decreases compared to 2010 and previous years. The causes of this decrease
are determined as the 2008 global financial crisis and the constraints in the
defence budgets of the manufacturing countries, the change in perceived
threats, as well as the termination of Iraq operation and that the operation in
Afghanistan is approaching the end. The total turnover of 100 large firms
selected in the world defence industry in 2013 is around 411 billion USD. (There
are also ASELSAN and TUSAŞ companies among these 100 companies.)
(source: SIPRİ 2013) The share of Turkish Defence and Aviation Industry in this
turnover is 1.2%. The total turnover of our industry in 2013 was $5,076 billion. The
foreign currency generating services are also included in this figure. Industry
average for Turnover Per Capita is $156,821. When compared with the
turnover per capita in 2012 ($142,019), a significant improvement is observed.
However, the fact that we are well below the world industry average
($317,580), emerges as an important problem of our industry.
During the 4 year period, from 2010 to 2013, the total change in turnover
is calculated as 63.91%.
Total turnover increase in 2013 was 5.75%, compared to 2012. This data,
which is low compared to the average of the last 4 years, may be due to the
fact that some important system deliveries (ATAK and SG Search and Rescue
Vessel) could not be invoiced due to prolonged Group Acceptance Tests.
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* The production of military factories and shipyards, which is $550 million, is
included.
TOTAL TURNOVER GRAPH OF THE LAST 4 YEARS ($ BILLION)
4.2. Sub-sectors
In order to deepen the performance evaluation this year, the turnover
distribution of our companies and organizations in land, marine, air systems
and civil aviation and space fields is also measured. The resulting table is
presented in the following graph.
The largest share in turnover comes from the sub-sector of land systems,
with $1.5 billion (34%). Aerial Systems sub-sector follows Land systems sub-
sector with sales of $1.3 billion. When civil aviation sales are added to
defence aviation systems, total aviation sub-sector sales reach $1.9 billion.
$4,174
$4,400
$4,800
$5,076
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000
2010
2011
2012
2013
TABLE OF TOTAL TURNOVER (Billion $)
Years Total Turnover % Change
(Compared to 2009)
% Change
(Annual)
2009 $3,067
2010 $4,174 % 36.09 % 36.09
2011 $4,400 % 43.46 % 5.41
2012 $4,800 % 56.50 % 9.09
2013* $5,076 % 65.50 % 5.75
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As a result, the share of aviation systems sub-sector including space is
around 45% of the total sales.
The share of the maritime sub-sector in the total sales is approximately
13%. It is estimated that the reason for this low rate is due to the difficulties in
delivery of the main platforms.
We can see that the subject of space which has not been much of an
issue in the previous years began to get its share in the industry, although in a
limited scope. The success of this sub-sector, which requires very high
technology, is important for the whole industry.
2013 SALES GRAPH OF DEFENSE (IN TERMS OF SUB-SECTORS); CIVIL AVIATION;
SPACE
CIVIL AVIATION;
$608,724,329 ;
14%
SPACE;
$3,568,477 ;
0%
LAND (DEFENSE);
$1,543,596,192;
34%
MARITIME
(DEFENSE);
$613,268,060 ;
14%
AIR (DEFENSE);
$1,361,479,628 ;
30%OTHER;
$383,038,973 ; 8%
Note: Other means security and service (logistics) industry exports.
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4.2.1. Turnover Per Capita
The number of employees operating in the defence and aviation
industries and providing the specified turnover was 32,368. Yield per capita
based on the turnover of sub-sectors is shown in the below graph. According
to data, the highest yield is in aviation defence sub-sector with $168,715,
followed by civil aviation with $151,122. Considering that a main air platform
for sale is not produced in our industry yet, turnover per capita can be
assessed to result from spare parts production, job sharing due to joint
projects, maintenance, repair, innovations and offset-based operations.
There are also good signs for the future in the civil aviation sub-sector.
Turkey, who has future plans to make its own passenger plane, is observed
that it's improving its technological infrastructure in this area.
GRAPH OF SALES PER CAPITA OF DEFENSE (IN TERMS OF SUB-SECTORS); CIVIL
AVIATION; SPACE IN 2013
$151,122
$51,431
$114,165
$133,328
$168,715
$284,787
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000
CIVIL AVIATION
SPACE
LAND (DEFENSE)
MARITIME (DEFENSE)
AIR (DEFENSE)
OTHER Export of the security and service (logistics) sector.
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4.2.2. Shares of Sub-sectors in Total Turnover
We have stated that the companies, institutions, and organizations
operating under the SASAD framework, are grouped into 11 sub-sectors and
that we have prepared our performance report in this context. The share of
these sub-sectors in 2013 sales is shown in the chart below along with their
percentages. It is observed that the success in the field of electronics is
followed by space sub-sector, land platforms, arms ammunition rockets
missiles and naval platforms sub-sectors, respectively. When the shrinking
domestic and foreign markets are taken into consideration, the policies and
the strategies providing the sustainability in maritime and land sub-sectors
should be pursued as quickly as possible. On the other hand, increasing their
competitiveness in foreign markets alongside sustainability is considered
crucial for other sub-sectors.
GRAPH of the TURNOVER DISTRIBUTION ACCORDING to SUB-SECTORS in 2013
LAND PLATFORMS;
$500,235,205.95;
11%
NAVAL PLATFORMS;
224,780,278.72 $;
5%
AVIATION - SPACE;
$1,205,141,186.00;
27%
INFORMATICS;
$299,486,390.68; 7%
ELECTRIC &
ELECTRONICS;
$1,330,476,562.02;
29%
WEAPONS-
AMMUNITION
ROCKET MISSILE;
$583,550,128.11;
13%
R&D ENGINEERING;
$138,837,377.49;
3%
MATERIAL - MOLD -
SPARE PARTS;
$34,669,727.51; 1%
CLOTHING &
APPAREL;
$202,018,706.60; 4%
OTHER
MANUFACTURERS;
$6,559,324.00; 0%
RELATED
CORPORATIONS;
$126,237.05; 0%
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4.2.3. Direct Contribution Shares of Employees Working in Sub-
sectors to Their Relevant Sectors
The sub-sector's share in the total turnover and its number of employees,
generally show its direct contribution to the industry. Industry average for
turnover per capita was calculated at $156,821. Considering that calculating
this ratio is an important indicator in terms of employee productivity and
competitiveness in that sector, this ratio is also given in the below graph.
GRAPH of SALES REVENUE PER CAPITA of SUB-SECTORS in 2013
$92,379.53
$420,150.05
$149,744.18
$292,181.84
$229,934.30
$71,417.22
$103,071.54
$37,807.77
$229,306.13
$27,676.47
$21,039.50
$0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 $350,000.00 $400,000.00 $450,000.00
LAND PLATFORMS
NAVAL PLATFORMS
AVIATION - SPACE
INFORMATICS
ELECTRIC & ELECTRONICS
WEAPONS AMMUNITION
ROCKET MISSILE
R&D ENGINEERING
MATERIAL - MOLD
- SPARE PARTS
CLOTHING & APPAREL
OTHER MANUFACTURERS
RELATED CORPORATIONS
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Note 1: The high turnover per capita of the naval platforms sub-sector is due
to the fact there is intensive subcontractor use in this sector and it is not
included in the number of employees.
Note 2: The reason for the low per capita turnover in the Weapons /
Ammunition sub-sector is the fact that the employees employed by the MKEK
in civil sales are not separated from the total number of employees and the
total number of employees is taken in determining the ratio.
Note 3: Defense and Aviation Industry World 2013 Sales Per Capita data is
presented below.
Highest: 364,994 $ Lowest: 253,787 $ Average: 317,580 $
Annual Employee Earnings (Including Tax, SS Premiums etc.)
ILO Data ($): USA..55,047; UK..44,222; France..39,600; Germany..42,121;
S.Korea..36,757; Israel..28,722; Italy..33,849; Czech Rep..20,487; Turkey..20,772.
Aviation & Defense Industry ($) : USA.. 80,175 , Turkey.. 34,750
European Union (2008) (Euro): France..68,800; UK..64,920; Germany..78,700;
Italy..52,700; Spain..53,300.
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5. ORDERS RECEIVED
In our 2013 survey, we opened a new chapter to try to assess the
workload of our companies and organizations over the coming years.
Considering the orders received in our industry on the basis of sub-sectors in
the graph below, it is predicted that the industry will continue its vitality in the
coming years. When the total new order amount of $8 billion received in the
year 2013 is compared to the annual turnover of our industry at $5,076 billion,
it is seen that a 1.5 years of work is readily taken in their order books.
When this comparison is made on the basis of the sub-major sectors; it is
seen that aviation and space have registered orders worth of 2.5 years in
order books in 2013, as well as orders worth of 2 months for informatics (due to
the fact that data cannot be obtained from one of the main players), 3 years
for electric-electronics, 9 months for arms ammunition rocket and 9 months for
naval platforms were also received.
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Defense and Aerospace Manufacturers Association
GRAPH of ORDERS RECEIVED IN 2013 ALLOCATED IN TERMS OF SUB-SECTORS
6. EXPORT
Turkish Defense and Aviation Industry exports reached $1,569 billion in
2013. According to Defense Industry Exporters Association, this value is seen as
$1.4 billion. The difference between the two figures is due to the addition of
the foreign currency that the firms earned for the services that they have
provided for various reasons such as maintenance, repair, modernization
engineering, to the export revenues by SaSaD.
Land Platforms;
391,243,508.01 $;
5%
Naval Platforms;
165,144,665.50 $;
2%
Aviation - Space;
3,131,620,743.33 $;
38%
Informatics;
40,674,412.68 $;
1%
Electrics and
Electronics;
3,714,567,787.89 $;
45%
Weapons-
Ammunition
Rocket Missile;
661,465,941.71 $;
8%
R&D Engineering;
64,604,599.51 $;
1%Material - Mold -
Spare parts;
22,132,914.79 $;
0%
Other
Manufacturers;
28,697,850.41 $;
0%
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One of the noteworthy things about the table is that exports have
increased in parallel and slightly above with the average turnover. This also
indicates that our industry has started to follow a growth trend based on
export.
Turkish Defense and Aviation Industry exports increased by 84%
compared to 2010, by 9.2% compared to 2012 based on SSIB data; by 24.3%
based on SaSaD data which includes foreign exchange generating services.
The diversity of the new indigenous systems that the industry players have
included in their product ranges and that these products have been taken
into the TAF(Turkish Armed Forces) inventory are considered to be important
factors in the increase in exports. The industry has now reached a state of
technology producing and exporting industry. The products and services that
enter the inventory of the Turkish Armed Forces are regarded highly in the
world market since they are accepted as products favored by a strong army
and proven in the operational settings.
The export performance of the Turkish Defense and Aviation Industries is
summarized in the following graphs and charts.
TABLE OF LAST 4 YEARS EXPORTS ($ MILLION)
Years Total Turnover % Change
(Compared to 2010)
% Change
(Annual)
2010 853 $
2011 1,100 $ % 28.96 % 28.96
2012 1,262 $ % 47.95 % 14.73
2013 1,570 $ % 84.02 % 24.38
2010 853 % Change Compared to 2010
2013 1,569 % 84
2012 (SSIB) 1,262 % of Change
2013 (SSIB) 1,391 According to 2012 SSIB 2013 SSIB: 10%
2013
(SaSaD) 1,569 According to 2012 SSIB 2013 SASAD: 24%
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TABLE OF TOTAL EXPORT REVENUES OF THE LAST 4 YEARS ($ MILLION)
From 2012 onwards Defense and Aviation Industry data is started to be
published by the Defense and Aviation Exporters Association according to the
industry's customs entry outwards. Although SaSaD uses this data, it also
includes foreign currency generating services in export figures of the
performance report. As a matter of fact, the total amount of exports
published by SSIB for 2013 is $1,391 billion.
SIPRI 2013 takes the countries' reports into account when ranking the first
15 countries in exports. Three different export declarations can be made in
these notifications. A large number of countries include the number of
invoices they have issued for exports as of the end of the relevant year, to
account for that year's exports. This is how it should be. Turkey is also making it
this way. But the two other countries along with Israel are reporting the
amount of the contracts they have signed for the following years as the
amount of export value. This situation is also not accepted by analysts who
prepare the report. The UK does not give export figures due to claiming that it
creates confusion, while China continues not to disclose at all. In SIPRI 2013,
Turkey takes place in the highest exporting countries list as one of the highest
15 countries. In 2013, exports accounted for 118% of the industry's total
imports. This rate was 89.7% in 2012.
$853
$1,100
$1,262
$1,570
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800
2010
2011
2012
2013
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Defense and Aerospace Manufacturers Association
2013 EXPORT DISTRIBUTION for CIVIL AVIATION, SPACE, LAND, SEA, AIR
SYSTEMS, OTHER (SECURITY AND LOGISTICS) SECTORS
SECTORS TOTAL EXPORTS
LAND PLATFORMS 220,497,556.04 USD
NAVAL PLATFORMS 27,826,385.00 USD
AVIATION - SPACE 904,558,480.00 USD
INFORMATICS 30,707,027.57 USD
ELECTRIC & ELECTRONICS 218,096,831.90 USD
WEAPONS-AMMUNITION ROCKET
MISSILE 122,164,191.14 USD
R&D ENGINEERING 6,021,038.35 USD
MATERIAL MOLD PARTS 8,691,326.97 USD
CLOTHING & APPAREL 27,150,582.35 USD
OTHER MANUFACTURERS 3,969,405.00 USD
TOTAL 1,569,682,824.33 USD
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GRAPH OF THE 2013 EXPORT DISTRIBUTION OF SUB-SECTORS
As can be seen clearly in the above graph, the largest share of exports
belongs to the aviation and space sub-sector. Land platforms, electric-
electronics, and weapons ammunition rocket/missile sub-sectors are following
the aviation and space sector.
Turkey; is successfully running the programs of ANKA Unmanned Aerial
Vehicle which is in the production stage within the scope of air platforms,
Hürkuş Trainer Aircraft, T-129 Attack Helicopter which is co-produced with
Drones and Göktürk Series Satellite programs. Although all these products are
still waiting to be included in the export portfolio, a very sensitive area such as
aviation and space has been captured with a significant export potential, by
the existing strong and advanced technology infrastructure.
LAND PLATFORMS;
220,497,556.04 $;
14%
SPACE;
4,426,435 $ ;
26%
AVIATION - SPACE;
904,558,480.00 $;
58%
INFORMATICS;
30,707,027.57 $;
2%
ELECTRICS and
ELECTRONICS;
218,096,831.90 $;
14%
WEAPONS-
AMMUNITION
ROCKET MISSILE;
122,164,191.14 $;
8%
R&D ENGINEERING;
6,021,038.35 USD;
0%MATERIAL - MOLD -
SPARE PARTS;
8,691,326.97 USD;
0%
CLOTHING &
APPAREL;
27,150,582.35 $;
2%
OTHER
MANUFACTURERS;
3,969,405.00 $; 0%
RELATED
CORPORATIONS;
0,00 $; 0%
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In the graph below, individual sub-sectors' per-capita export revenues
are shown. Aviation and space sub-sector is still the one with highest per
capita export revenue. The added value of superior technology production
makes a significant difference for the industry when compared to other
industries.
2013 GRAPH OF PER CAPITA EXPORTS OF SUBSECTORS
6.1. Distribution of Export
What is noteworthy in exports is that Non-European sales are increased
by 137% compared to the previous year. In this increase, the share of sales to
USA and Gulf countries in aviation is significant.
$40,719.77
$52,011.93
$112,395.44
$29,958.08
$37,691.72
$14,950.95
$4,469.96
$9,478.00
$30,817.91
$16,748.54
$0.00 $20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00
1. LAND PLATFORMS
2. NAVAL PLATFORMS
3. AVIATION - SPACE
4. INFORMATICS
5. ELECTRIC & ELECTRONICS
6. WEAPONS-AMMUNITION
ROCKET MISSILE
7. R&D ENGINEERING
8. MATERIAL - MOLD
- SPARE PARTS
9. CLOTHING & APPAREL
10. OTHER MANUFACTURERS
11. RELATED CORPORATIONS
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Defense and Aerospace Manufacturers Association
While cutbacks in defense spending in developed countries is bringing a
reduction in new platform production; the spending is oriented towards
maintenance, renovation, and modernization of the systems that are
currently in the inventory of world armies. It should be expected that these
issues will be the sought-after capabilities of the markets. There are significant
leaps in unmanned aerial vehicles in the field of civil aviation and space, in
the world markets and it is assessed that this expansion trend will continue.
While these become the new favorites of the industry market, logistics
(service/maintenance) is standing out as another developing area. The
industry has succeeded in marketing its new products and developing
technological capability. It must support its activities in this direction with;
logistics support to the systems accepted into the inventory as well as
development of their performance and civil aviation and space services.
2011 EXPORT DISTRIBUTION ($ MILLION)
Years Europe Non - Europe
2011 694 $ 395 $
523 € 297 €
2011 EXPORT DISTRIBUTION
Europe
64%
Non - Europe
36%
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Exports to Europe and western countries generally focus on sub-systems
and informatics fields. It is noted that system-level products constitute the
sales to the Gulf and Central Asia etc. countries. The persistent
implementation of offset applications in public procurement has led to
positive developments in the exports of the defense and especially aviation
sectors and it will continue to do so in the future.
It is noted that $694 million worth of 2011 exports were made to Europe.
When it comes to 2012, it was seen that exports to Europe have fallen by half.
As a consequence, naturally, Non-Europe exports are observed to be
increasing. For the significant part of our exports to Europe and the USA, in
fact for almost all of it; the sub-systems and machine molds, spare parts, as
well as software-oriented products are at the forefront and moreover most of
the exports are offset-based goods and services. This situation did not change
in 2013.
2012 EXPORT DISTRIBUTION (Million)
Years Europe Non - Europe
2012 325 $ 937 $
245 € 706 €
2012 EXPORT DISTRIBUTION
Europe
26%
Non - Europe
74%
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2013 EXPORT DISTRIBUTION (Million)
Years Europe Non - Europe
2013 336 $ 1,233 $
253 € 928 €
2013 EXPORT DISTRIBUTION
Europe
21%
Non - Europe
79%
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2013 EXPORT DISTRIBUTION (Million)
Years Europe USA Other
2013 336 $ 680 $ 554 $
253 € 512 € 417 €
2013 EXPORT DISTRIBUTION
7. IMPORTS
A decrease of 6% is observed in the imports of the year 2013 compared
to the imports of 2012. In fact, the goods and services imported are more
important than the import figures. Turkey today, has to import the power units
in all the main sectors. A large part of the import items is in this scope. The
second type of imports is qualified materials (sensors/detectors / special
alloys, metals, chemicals, etc.) and semi-finished products and finished goods
are also important items in our imports. However, exports account for 118% of
the industry's total imports and this is an important assessment.
Europe
21%
USA
43%
Other
36%
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TABLE OF TOTAL IMPORTS FOR THE LAST 2 YEARS ($ MILLION)
Years Total Turnover % Change (Compared to 2012) % Change (Annual)
2012 1,409 $
2013 1,327 $ -6% -6%
TABLE OF TOTAL IMPORTS FOR THE LAST 2 YEARS ($ MILLION)
7.1. Distribution of Imports According to Sub-sectors
Each sub-sector imports is included in the graph. Although the details of
imports are not seen, the imported goods change according to the nature of
the sub-sector. Our imports continue in a balanced manner, in a wide
spectrum ranging from power units to special alloy metals, qualified raw
materials, and semi-finished products.
1407
1327
1280 1300 1320 1340 1360 1380 1400 1420
2012
2013
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IMPORT DISTRIBUTION ACCORDING TO SUB-SECTORS
8. PRODUCT AND TECHNOLOGY DEVELOPMENT
In the period from 1985 to this day, Turkey has become one of the most
important centers of power today thanks to a huge mobilization of Defense
and Aviation Industry. While continuing its efforts to meet the needs of the
Armed Forces in Turkey with products which are produced with high domestic
contribution and indigenous technology, its contribution to the country's
economy is direct and maximal. There are significant improvements taking
place with all firms in the industry, large and small, as well as with government
incentives and support. Thanks to enacted incentive laws, set up
Technocities, university, and industry collaboration studies, the industry started
to have a voice in the overseas markets.
LAND PLATFORMS;
160.141.973,17 $;
12%
NAVAL PLATFORMS;
56,954,612.70 $;
4%
AVIATION - SPACE;
543,218,527.63 $;
41% INFORMATICS;
11,723,368.57 USD;
1%
ELECTRIC &
ELECTRONICS;
355,282,408.16 $;
27%
WEAPONS-
AMMUNITION
ROCKET MISSILE;
124,122,558.54 $;
9%R&D ENGINEERING;
8,679,191.13 $;
1%
MATERIAL MOLD
PARTS;
2,066,701.67;
0%
CLOTHING &
APPAREL;
62,766,709.50 $;
5%
OTHER
MANUFACTURERS;
1,888,574.55 $; 0%
RELATED
CORPORATIONS;
0,00 $; 0%
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Defense and Aerospace Manufacturers Association
Defense and Aviation Industry is the one with the highest product and
technology development expenditure among all industries of our country.
In 2012, $772 million was spent on product and technology development
in the industry, with approximately $200 million financed from equity sources.
This number is equivalent to 16% of the total turnover. In 2013, the expenditure
amount in this context was realized at $927 million, which amount to 18% of
2013 sales revenues (turnover). A product and technology development
expenditure on this scale makes a significant difference for the industry when
compared to other industries. Total product and technology development
expenditure per capita was calculated as $29,186.
When we consider the turnover and export results, it is clear that we are
in the right direction in terms of investments since the support and incentives
made to product and technology development expenditures as well as
expenditures made from equity helped our industry to develop much needed
indigenous products and technologies.
In the charts and graphs presented below, the developments in this area
are demonstrated with figures. Technocities and product and technology
development centers supported by our government directly affect the
development and future of the industry which has already become highly
concentrated in product and technology developments.
Product and technology development expenditures in terms of equity
and project support in the last four years are presented in the following graph.
TABLE PRODUCT AND TECHNOLOGY DEVELOPMENT EXPENDITURES
FOR THE LAST 4 YEARS ($ Million)
Years PRODUCT AND
TECHNOLOGY
DEVELOPMENT (EQUITY)
PRODUCT AND
TECHNOLOGY
DEVELOPMENT
(PROJECT INCENTIVES)
TOTAL PRODUCT
AND
TECHNOLOGY
DEVELOPMENT
2010 143 $ 523 $ 666 $
2011 221 $ 451 $ 672 $
2012 200 $ 572 $ 772 $
2013 237 $ 690 $ 927 $
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Defense and Aerospace Manufacturers Association
GRAPH OF PRODUCT AND TECHNOLOGY DEVELOPMENT EXPENDITURES FOR THE
LAST 4 YEARS ($ MILLION)
In the last 4 years, per capita equity and project support expenditures
are shown in the below table. As you can see from the tables above and
below, both total and per capita equity product and technology
development expenditures show a significant increase (66%). This rate is 32%
in R&D expenditures supported with projects.
TABLE OF PER CAPITA PRODUCT AND TECHNOLOGY DEVELOPMENT
EXPENDITURES FOR THE LAST 4 YEARS
Years
PRODUCT AND
TECHNOLOGY
DEVELOPMENT
(EQUITY)
PRODUCT AND
TECHNOLOGY
DEVELOPMENT
(PROJECT INCENTIVES)
TOTAL PRODUCT AND
TECHNOLOGY DEVELOPMENT
2010 4,503 $ 16,470 $ 20,973 $
2011 6,960 $ 14,202 $ 21,162 $
2012 6,298 $ 18,013 $ 24,311 $
2013 7,461 $ 21,726 $ 29,186 $
$143
$221
$200
$238
$523
$451
$572
$690
$666
$672
$772
$928
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
2010
2011
2012
2013
Total With Project Incentives With Equity
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Defense and Aerospace Manufacturers Association
GRAPH OF PER CAPITA PRODUCT AND TECHNOLOGY DEVELOPMENT
EXPENDITURES FOR THE LAST 4 YEARS
Sub-sector R&D expenditure per capita is shown in the following graph.
Typically the largest expenditure belongs to aviation and space sub-sector.
Turkey has the potential to provide significant development in the aviation
and space field, as shown with this indicator.
Product and technology development expenditure distribution on the
basis of the sub-sectors is given in the graph below. The highest share belongs
to electric-electronics sub-sector, followed by the weapons and ammunition
in second place.
$4,418
$6,828
$6,179
$7,353
$16,158
$13,933
$17,672
$21,325
$20,576
$20,761
$23,850
$28,678
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
2010
2011
2012
2013
Total With Project Incentives With Equity
30
Defense and Aerospace Manufacturers Association
8.1. Product Development
GRAPH OF 2013 PRODUCT DEVELOPMENT DISTRIBUTION ACCORDING TO SUB-
SECTORS
8.2. Technology Development
Turkey stepped up its Defense and Aviation Industrial Technology
Development activities. Turkey will take its place in the top rankings of
product and technology exporting countries in the next 10 years, by directing
its experience gained in system development to subsystem components and
technology development. As of 2013, SaSaD started to track its members'
technology development efforts and keep a record of statistics on
expenditures in this field. To give you an idea about technology development
activities, the below graph is presenting expenditure information in this field.
LAND PLATFORMS;
111,409,329.48 $;
13%
NAVAL PLATFORMS;
$3,477,468.93 ;
0%
AVIATION - SPACE;
$115,812,852.72 ;
14%
INFORMATICS;
9,349,040.92 $ ;
1%
ELECTRIC &
ELECTRONICS;
367,673,996.96 $;
44%
WEAPONS
AMMUNITION
ROCKET MISSILE;
222,762,900.21 $ ;
27%
R&D ENGINEERING;
$4,881,413.58 ; 1%
MATERIAL - MOLD -
SPARE PARTS;
$1,061,926.36 ; 0%
RELATED
CORPORATIONS;
$195,421.47 ;
0%
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Defense and Aerospace Manufacturers Association
GRAPH OF 2013 TECHNOLOGY DEVELOPMENT EXPENDITURE DISTRIBUTION
LAND PLATFORMS;
$- ; 0%
NAVAL PLATFORMS;
$- ; 0%
AVIATION - SPACE;
$5,674,392.40; 6%
INFORMATICS;
$2,317,782.46 $ ;
3%
ELECTRIC &
ELECTRONICS;
47,590,810.78 $ ;
53%
WEAPONS-
AMMUNITION
ROCKET MISSILE;
30,145,582.95 $ ;
34%R&D ENGINEERING;
$2,998,790.48; 3%
MATERIAL - MOLD -
SPARE PARTS;
$832,903.65; 1%
RELATED
CORPORATIONS; $-
; 0%
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Defense and Aerospace Manufacturers Association
9. EMPLOYMENT
According to the information received from our companies, this performance
was achieved with 32,368 employees. The numbers of people working in the
11 sub-sectors are listed in the following table.
TABLE OF EMPLOYMENT DISTRIBUTION BY SECTOR
SECTORS İ EMPLOYMENT
LAND PLATFORMS 5,415 People
NAVAL PLATFORMS 535 People
AVIATION - SPACE 8,048 People
INFORMATICS 1,025 People
ELECTRIC & ELECTRONICS 5,786 People
WEAPONS-AMMUNITION ROCKET
MISSILE 8,171 People
R&D ENGINEERING 1,347 People
MATERIAL - MOLD - SPARE PARTS 917 People
CLOTHING & APPAREL 881 People
OTHER MANUFACTURERS 237 People
RELATED CORPORATIONS 6 People
TOTAL : 32,368 People
EMPLOYEE PROFILE OF 2013
ENGINEER 11,662
OTHER DEPARTMENTS (UNIVERSITY) 3,715
TECHNICAL OPERATOR 10,791
OTHER 6,199
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Defense and Aerospace Manufacturers Association
EMPLOYEE PROFILE OF 2013
CIVIL
AVIATION SPACE LAND MARINE AIR OTHER
4,028 69 13,679 4,681 8,189 232 1,470 21
4,028 69 13,679 4,681 8,189 1,723
ENGINEER; 11662;
36%
OTHER
DEPARTMENTS
(UNIVERSITY);
3715; 12% TECHNICAL
OPERATOR;
10791; 33%
OTHER; 6199; 19%
TOTAL INDUSTRY EMPLOYMENT IN THE LAST 2 YEARS
Years
2012 33,491 People
2013 32,368 People
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Defense and Aerospace Manufacturers Association
GRAPH OF 2013 SUB-SECTORS EMPLOYMENT
33,491 32,368
0
5000
10000
15000
20000
25000
30000
35000
40000
2012 2013
LAND PLATFORMS;
5415; 17%
NAVAL PLATFORMS;
535; 1%
AVIATION - SPACE;
8048; 25%
INFORMATICS;
1025; 3%ELECTRICS AND
ELECTRONICS; 5786;
18%
WEAPONS-
AMMUNITION ROCKET
MISSILE;
8171; 25%
R&D ENGINEERING;
1347; 4%MATERIALS-MOLD;
917; 3%
CLOTHING &
APPAREL;
881; 3%
OTHER
MANUFACTURERS;
237; 1%
RELATED
CORPORATIONS;
6; 0%
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Defense and Aerospace Manufacturers Association
GRAPH of 2013 EMPLOYMENT IN DEFENSE (BY SUB-SECTOR);
CIVIL AVIATION; SPACE
CIVIL AVIATION;
4028; 13%
SPACE; 69;
0%
LAND; 13679;
42%
MARINE; 4681;
15%
AIR; 8189;
25%OTHER; 1723;
5%
36
Defense and Aerospace Manufacturers Association
10. GENERAL OVERVIEW:
As a result of the collective evaluation of the industry performance data above; the
following assessments are made.
1- The industry continues its development trend.
2- The increase in total sales was slightly lower than in other years. At first glance,
it can be assessed that delays in the group acceptance stage of the products,
which are ready for delivery and billing, led to this result. But similar problems,
in terms of different sales amounts, reoccur each year. Therefore; it is
necessary to analyze this issue in depth from the perspective of the
sustainability of the competencies gained by the industry to identify causes
and define measures.
3- Development in exports is considered to be positive. It is assessed that the
industrialists of the developed western countries will enter into a new quest
and will begin to take a more active role in emerging markets due to
narrowing of the resources in their defense budgets. This reveals that the
players of the industry will face a wider and more intense competition in these
markets in the coming periods. For this reason, it is assessed that for expanding
the range of sellable products and entering the market with more affordable
prices (despite the positive development in per capita production, it is still
below world values of values of 250-360 thousand US Dollars which may
constitute an obstacle.); it is necessary to be ready for technology transfer,
have a positive attitude for local contribution/offset demands, make
advancements in forming partnerships (joint venture) and engage in intensive
business development/marketing.
4- In the short to medium term, it is expected that there will be the high demand
in civil aviation and compel the existing production capacity, thus there will
be a need for new players to enter the supplier list. The positive development
which began in civil aviation will probably grow exponentially and we suggest
that our members take note of this area in particular.
5- Also, unmanned aerial vehicles, helicopters, satellite (communications,
intelligence) intelligent cities/homeland security (including cybersecurity),
modernization of marine systems and land systems, precision munitions,/big
data issues, will continue to take place in the list of searched
products/services, in the short/medium term.
Defense and Aerospace Manufacturers Association
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Defense and Aerospace Manufacturers Association
6- It is observed that positive steps have been taken on external dependency
and the import expenditure has a tendency to decrease. In this context,
attention should be paid to the design and use of inputs outside the supply
control of export sources to reduce external dependency (Use of COTS
products) and it is crucial to focus on subsystem, component, and
technology development efforts for producing the critical inputs
domestically and to increase the allocation of equity and project support to
this area.
7- It seems that our industry players, who are in the position of integrators and
have the ability to market platforms and systems, did not yet reach sufficient
size as compared to the world companies that they will compete with. It is
suggested that since growth is an indispensable prerequisite for active
competition, necessary arrangements and measures should be taken.
The assessment of these data shows that in order to reach the objectives
declared by Turkish Defense and Aviation Industry, the strategies and policies
related to the above matters should be reviewed and any possible measure must
be immediately taken. As of this year, all the players of the industry should take
more concrete and realistic steps in sustainability and enhancing competition in
foreign markets.
Defense and Aerospace Manufacturers Association
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Defense and Aerospace Manufacturers Association
11. COMPANIES CONTRIBUTING TO PERFORMANCE DATA
1. SELEX ES Elektronik TURKEY A.Ş.
2. AKANA Mühendislik ve Ticaret Ltd. Şti.
3. ALP HAVACILIK SANAYİ VE TİCARET AŞ.
4. ANOVA PROJE VE DANIŞMANLIK TİC. LTD. ŞTİ.
5. ASELSAN A.Ş.
6. AYDIN YAZILIM VE ELEKTRONİK SANAYİ A.Ş
7. BİTES Savunma Havacılık ve Uzay Teknolojileri Ltd. Şti
8. C TECH Bilişim Teknolojileri San. Ve Tic. A.Ş
9. DELTA ELEKTRONİK TİCARET VE SANAYİ LİMİTED ŞİRKETİ
10. DESAN SHIPYARD A.Ş.
11. ESEN SİSTEM
12. ETA ELEKTRONİK TASARIM SANAYİ VE TİCARET A.Ş.
13. ETC
14. FNSS SAVUNMA SİSTEMLERİ A.Ş.
15. GATE ELEKTRONİK San. ve Tic. A.Ş.
16. HST OTOMOTİV İMALAT SANAYİ VE TİCARET A.Ş.
17. İSTANBUL DENİZCİLİK GEMİ İNŞA SAN. VE TİC. A.Ş.
18. İŞBİR ELEKTRİK SANAYİ A.Ş.
19. KOLUMAN MOTORLU Araçlar Ticaret ve Sanayi A.Ş.
20. MERCEDES-BENZ TÜRK A.Ş.
21. MİKES A.Ş.
22. NUROL TEKNOLOJİ SAN. VE MADENCİLİK TİC. A.Ş
23. ODAK KOMPOZİT TEKNOLOJİLERİ A.Ş.
24. OTOKAR OTOMOTİV VE SAVUNMA SAN. A.Ş.
25. Pİ MAKİNA A.Ş.
26. REPKON MAKİNA VE KALIP SANAYİ VE TİCARET A.Ş.
27. SDT Uzay ve Savunma Teknolojileri A.Ş
28. TEI - TUSAŞ Motor Sanayii A.Ş.
29. TUSAŞ-TÜRK HAVACILIK VE UZAY SANAYİİ A.Ş.
30. ALTAY KOLLEKTİF ŞİRKETLER DURAL VE ORT.
31. ATEL TEKNOLOJİ VE SAVUNMA SANAYİİ A.Ş.
32. AVS SARACİYE TEKSTİL KONFEKSİYON
33. ESDAŞ ELEKTRONİK SİSTEMLER DESTEK SANAYİ VE TİCARET A.Ş.
34. FİGES FİZİK VE GEOMETRİDE BİLGİSAYAR SİMÜLASYONU A.Ş.
35. GATE Elektronik San. ve Tic. A.Ş.
36. GİRSAN MAKİNE ve HAFİF SİLAH SANAYİ A.Ş.
37. GLOBAL TEKNİK A.Ş.
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Defense and Aerospace Manufacturers Association
38. HAVELSAN TEKNO RADAR A.Ş.
39. HAVELSAN A.Ş.
40. İSTANBUL DENİZCİLİK GEMİ İNŞA SAN. VE TİC. A.Ş.
41. KOÇ BİLGİ VE SAVUNMA TEKNOLOJİLERİ A.Ş.
42. KRL Bilgisayar Ltd. Şti.
43. MEGE TEKNIK A.Ş.
44. METEKSAN SAVUNMA SANAYİİ A.Ş.
45. MİLPER PERVANE Teknolojileri A.Ş.
46. MİLSOFT YAZILIM TEKNOLOJİLERİ A.Ş.
47. MKEK
48. NUROL MAKİNA A.Ş.
49. OTOKAR OTOMOTİV VE SAVUNMA SAN. A.Ş.
50. ÖZTİRYAKİLER MADENİ EŞYA SAN. ve TİC. A.Ş
51. ROKETSAN ROKET SANAYİİ VE TİCARET A.Ş.
52. SAMSUN YURT SAVUNMA Sanayi ve Ticaret A.Ş.
53. SAVUNMA TEKNOLOJİLERİ MÜHENDİSLİK ve Danışmanlık A.Ş.
54. ŞENER OTOMOTİV YEDEK PARÇA MAK. SAN. VE TİC. LTD. ŞTİ.
55. TEKNO KAUÇUK SANAYİİ A.Ş.
56. TEKNODROM ROBOTİK ve OTOMASYON SAN. TİC. A.Ş.
57. AEROTİM MÜHENDİSLİK YAZILIM DANIŞMANLIK TİC.SAN. LTD. ŞTİ.
58. TİSAŞ TRABZON SİLAH SANAYİ A.Ş
59. TRANSVARO A.Ş.
60. TURAÇ DIŞ TİCARET LTD. ŞTİ.
61. TÜBİTAK MAM
62. TÜBİTAK SAGE
63. YAKUPOĞLU TEKSTİL VE DERİ SAN. TİC. A.Ş.
64. YALTES ELEKTRONİK VE BİLGİ SİSTEMLERİ ÜRETİM VE TİCARET A.Ş.
65. YONCA - ONUK ADİ ORTAKLIĞI
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Defense and Aerospace Manufacturers Association
Notes:
41
Defense and Aerospace Manufacturers Association
Notes: