Rising labor and production costs are forcing Turkish apparel manufacturers to seek new low-cost hubs, turning to Syria and Uzbekistan after previously expanding into Egypt.

According to a report by Yener Karadeniz of Ekonomim, Turkish garment makers have lost competitiveness in basic and low-segment products as domestic monthly labor costs climbed to $1,300. In Syria, Egypt, and Uzbekistan, monthly worker costs remain around $300 to $400.

'In Syria, labor costs are even below Egypt,' said Ramazan Kaya, executive board member at TYH Tekstil and former head of the Turkish Clothing Manufacturers Association (TGSD).

Kaya pointed to Syria’s proximity, noting that Aleppo is just a 2.5-hour drive from Gaziantep, one of Turkey’s textile hubs. Turkish companies can supply raw materials and accessories domestically while outsourcing labor-intensive assembly to Syria.

Meanwhile, Uzbekistan offers an established infrastructure for cotton, yarn, and dyeing, along with government financing incentives. Rather than building new factories, Turkish firms are adopting contract manufacturing models with local Uzbek firms.

Industry leaders say these regional partnerships allow Turkey to retain design, R&D, and raw material production at home while remaining globally competitive on price-sensitive orders.