Metin Kalkavan: Turkish Shipbuilding Loses Edge in Commercial Ships

One of the veteran figures of the Turkish shipbuilding industry, Metin Kalkavan, delivered striking assessments of the current state of the sector during the 5th Türkiye Maritime Summit. Drawing attention to rising production costs, declining productivity, and increasingly difficult international competition, Kalkavan said that Turkish shipyards have entered a critical period in commercial shipbuilding.

Using strong language in his speech, Kalkavan stated that the current conditions are not sustainable and made the following assessment:

"The shipbuilding industry is reaching its finale in commercial ships this year. Until a new spring comes, only a handful of shipyards in Türkiye will be able to secure new orders."

Labour costs have more than doubled

Kalkavan stated that the sharp increase in production costs over the past four years has seriously weakened competitiveness, noting that the man-hour cost was around $11 four years ago but has now risen to more than $30.

"In the contracts we sign today, labour costs have exceeded $30. Shipyards appear to be full, but this does not mean high profitability; it means high losses."

Kalkavan stated that many shipyards are operating at a loss.

Türkiye is now more expensive than Europe

Kalkavan said that Türkiye has become more expensive than much of Europe in terms of production costs, adding that this is a common problem not only for the shipbuilding industry but for the entire export sector.

"If we are consuming the same product at a higher price than in the United Kingdom today, there is a structural problem. Türkiye has fallen out of the game in commercial shipbuilding and has lost a significant part of its competitiveness."

Serious decline in productivity

Kalkavan also addressed workforce productivity, stating that a significant portion of working hours is not being used efficiently.

"If one employee used to produce 50 kilograms, today the same employee produces 20 kilograms. Out of an eight-hour working day, we can only get about two and a half hours of productive work."

The solution: Lean Production culture

Emphasising that the Lean Production system should be widely adopted in order for the sector to become competitive again, Kalkavan said that it is not merely a production model but a corporate culture.

"It is easy to say, 'Produce value-added products.' The real issue is showing how to do it. Türkiye urgently needs to adopt a Lean Production culture. Companies that fail to do so, unless they are monopolies or public institutions, will find it very difficult to survive."

Kalkavan stated that continuous improvement is at the core of Lean Production, adding that businesses should aim to produce more efficiently, more quickly, and at lower cost every day.

We cannot compete unless we learn to listen

Stating that the two fundamental pillars of Lean thinking are listening and learning, Kalkavan said that transformation is impossible without changing corporate culture.

"As a society, when we fail to listen, we also fail to learn. Societies that cannot learn have no chance of competing."