Shipbuilding Struggles to Maintain Its Niche Market

Industry Insights by Next Move Strategy Consulting

Turkish shipyards, with production costs now on par with those of Norway, have faced a rapid decline in orders. In June, exports dropped by 62% compared to the same period last year, with no sales made to Norway, one of their main markets.

Turkish Shipbuilding Sector Suffers Steep Export Decline Amid Rising Costs and Financing Challenges

Mounting costs and limited access to financing are eroding the competitiveness of Turkish shipyards. Domestic manufacturers, increasingly losing orders to foreign competitors, are seeing a sharper drop in exports. In June, Türkiye’s ship and yacht exports plunged by 61.8% year-over-year, falling to around $84 million. The shipbuilding industry recorded the steepest export decline among all sectors that month.

Ship and Yacht Exports Set to Decline Further as Employment Losses Deepen in Turkish Shipyards

Ship and yacht exports are expected to contract by more than 15 percent by the end of the year. At the same time, job losses in the sector persist. Despite having over 80 operational shipyards, employment in the industry has dropped by more than 10 percent over the past year.

Turkish Shipyards Struggle to Secure New Orders Amid Soaring Costs and Shifting Global Demand

Turkish shipyards, which quickly established Turkey as a global leader in specialized shipbuilding, found themselves unable to take on new orders when production costs reached levels comparable to Norway, Turkey's top ship export market. The sector, which closed last year with a limited 1.4 percent contraction due to earlier contracts, faces a challenging year in 2025.

Key Highlights: Challenges Facing Türkiye’s Shipbuilding Sector

• Turkish shipyards are struggling to secure new orders as production costs have risen to match those of Norway, one of their main competitors and export markets.

• Ship and yacht exports dropped sharply, falling by 61.8% year-over-year in June to around $84 million, marking the steepest decline among all sectors.

• No exports were recorded to Norway in June, despite it being a top market in previous years.

• Ship and yacht exports are projected to shrink by over 15% by the end of 2025, with job losses in the sector exceeding 10% over the past year.

Norway Drops from Top Export Markets for Turkish Shipyards Amid Rising Costs

Norway, a key export destination for Turkish shipyards for more than a decade, fell out of Türkiye’s top 10 export markets in June due to surging production costs. In June last year, Norway was Türkiye’s leading export market with $60 million in ship and yacht sales; however, no exports were recorded to the country during the same month this year—a significant shift. Despite this, Norway retained its position as the top export market in the January–June 2025 period, accounting for 22 percent of total exports. Still, losses in the Norwegian market contributed to the decline in fishing vessels, the main product exported to the country. Exports of special-purpose fishing vessels fell by 0.5 percent year-over-year in the first half, totaling approximately $157 million.

Conclusion

The Turkish Shipbuilding sector faces mounting challenges amid rising costs, limited financing, and declining demand from key markets like Norway. With exports and employment both shrinking, the sector is bracing for a difficult year ahead as global competition intensifies.

Source: https://www.ekonomim.com

Prepared by: Next Move Strategy Consulting