Turkey’s Rising Costs: What It Means for Wire & Cable

Turkey has long been a key supplier to Europe’s wire and cable industry, thanks to its strong export base and close geographic ties. But recent economic pressures, led by soaring inflation, are reshaping the business environment and forcing manufacturers to adapt quickly.

Inflation has been Turkey’s most pressing challenge. Prices climbed sharply through 2023 and into 2024, peaking at around 75% year-on-year before easing back into the 30-40% range in early 2025. This volatility has hit every corner of the economy. For manufacturers, it means raw material, energy, and labour costs are all rising rapidly, often with little warning. It also makes long-term planning difficult, as exchange rates and domestic input costs move faster than contracts can be agreed.

At the start of 2025, Turkey introduced a sharp increase in its statutory minimum wage, lifting the net monthly floor to around TRY 22,000. This step was designed to protect households from the impact of inflation, but it has also pushed employers’ wage bills higher. Combined with April’s rise in industrial energy tariffs, Turkish cable producers face a significantly more expensive cost base than just a year ago.

For the wire and cable industry, the pressure is most visible in downstream operations such as multi-stage drawing, extrusion, and packaging – areas where labour and energy costs weigh heavily. Although raw materials like copper and polymers remain the dominant cost drivers, the unpredictability of inflation has added a layer of complexity that makes quoting and long-term pricing more difficult.

Yet despite these challenges, Turkey remains one of Europe’s most competitive and reliable supply bases. Its geographic proximity to EU markets reduces transport costs and lead times, while its skilled workforce and established export networks continue to give it a strong edge over more distant competitors. Many Turkish manufacturers are also investing in automation and efficiency improvements to soften the blow of higher costs, ensuring they remain resilient in the face of inflationary pressures.

For European buyers, the practical effect is more frequent price adjustments, shorter validity periods, and greater emphasis on indexation for metals and energy. For Turkish producers, the focus is on communicating transparently with customers and highlighting their flexibility, speed, and quality in a volatile environment.

The IWMA view: As an association, we will continue to monitor Turkey’s inflationary environment and keep members informed of developments. While rising costs and unpredictable pricing remain challenges, our Turkish members continue to demonstrate resilience and adaptability. Their role in supplying Europe with high-quality cable remains vital, and IWMA is committed to supporting them as they navigate these shifting conditions.