< Previous70 OCTOBER 2022 Manufacture of chemical products was the sub-sector with the highest relative output ratio. The relative output ratio is calculated by dividing the per capita gross value-added generated by the per capita va- lue-added generated across the ISO 500. As such, relative output ratios indicate the value-added productivities of in- dividual sub-sectors. This evaluation does not include high gross value-added sectors that subject to significant indirect taxes, such as “Manufacture of Beverages” (11), “Manufacture of Tobacco Products” (12) and “Manufacture of Coke and Refined Pet- roleum Products” (19). As of 2021, the sector with the highest relative output ra- tio was mining and quarrying. Chemical products recorded the highest relative output ratio among the manufacturing industries, which continued to have varying relative output ratios in 2021 as well. The manufacture of wearing appa- rel and jewellery industry saw the lowest positive relative output ratios. DISTRIBUTION OF NET VALUE-ADDED BY FACTOR INCOMES (%) RELATIVE OUTPUT RATIOS BY SECTOR Salaries and Wages Paid Interest Paid Profit as National Income Mining and quarrying Manufacture of chemicals and chemical products Manufacture of basic metals Manufacture of paper and paper products Manufacture of wood and of products of wood and cork (except furniture) Manufacture of computer, electronic and optical products Manufacture of other transport equipment Manufacture of fabricated metal products (except machinery and equipment) Manufacture of basic pharmaceutical products and pharmaceutical preparations Manufacture of other non-metallic mineral products Manufacture of machinery and equipment, not elsewhere classified Manufacture of motor vehicles, trailers and semi-trailers Manufacture of rubber and plastic products Manufacture of electrical equipment Manufacture of food products Manufacture of textiles Manufacture of furniture Manufacture of wearing apparel Manufacture of jewellery, bijouterie and related articles Electricity, gas, steam and air conditioning supply 0-50-100-15050100150200250300 50.6 54.9 83.6 86.4 89.5 94.7 102.6 113.5 114.1 116.4 192.6 217.4 236.2 244.5 261.4 63.1 35.9 26.6 -7.8 -97.7 32.2 28.1 39.7 2021OCTOBER 2022 71 Distribution of Employment and of Gross Value-Added and Relative Output Ratio (%) Sectors 20202021 Distribution of Employment Distribution of Gross Value-Added Relative Output Ratio Distribution of Employment Distribution of Gross Value-Added Relative Output Ratio 05-08Mining and quarrying3.06.5218.73.07.8261.4 10Manufacture of food products19.111.459.417.79.754.9 13Manufacture of textiles10.35.149.810.95.550.6 14Manufacture of wearing apparel3.91.230.84.11.126.6 15Manufacture of leather and related products0.10.156.5--- 16 Manufacture of wood and of products of wood and cork (except furniture) 1.31.6125.71.02.0192.6 17Manufacture of paper and paper products1.62.4149.51.53.3217.4 20Manufacture of chemicals and chemical products4.28.6204.34.310.6244.5 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 1.72.4143.71.51.5102.6 22Manufacture of rubber and plastic products3.93.692.74.13.483.6 23Manufacture of other non-metallic mineral products4.25.2122.64.34.194.7 24Manufacture of basic metals8.911.8133.39.422.2236.2 25 Manufacture of fabricated metal products (except machinery and equipment) 3.64.4121.63.43.9113.5 26Manufacture of computer, electronic and optical products3.04.6152.22.63.0116.4 27Manufacture of electrical equipment7.86.684.67.95.063.1 28Manufacture of machinery and equipment N.E.C.2.62.8104.22.92.689.5 29Manufacture of motor vehicles, trailers and semi-trailers14.914.597.515.113.086.4 30Manufacture of other transport equipment2.22.299.52.32.6114.1 31Manufacture of furniture1.50.855.51.60.635.9 32Other manufacturing0.20.292.60.20.0-7.8 32.1Manufacture of jewellery, bijouterie and related articles0.20.292.60.20.0-7.8 35Electricity, gas, steam and air conditioning supply1.73.7220.12.0-2.0-97.7 Note: This table excludes "manufacturing of beverages" (11), "manufacture of tobacco products" (12) and "manufacture of coke and refined petroleum products" (19) sectors. EFFICIENCY AND PRODUCTIVITY72 OCTOBER 2022 Asset turnover recorded limited growth. Asset turnover is an indicator of financial and operational efficiency of an enterprise’s activities and is calculated as the ratio of net sales to total assets. A high asset turnover means high efficiency and productivity. Following its drop to 1.09 in 2019, the asset turnover of the ISO 500 further decreased to 1.03 in 2020. In 2021, the asset turnover rate rebounded to its 2019 level of 1.09. The accelerated expansion in the domestic and foreign sales in 2021 had a positive effect on asset turnover. Working capital turnover remained flat. Working capital turnover is the ratio of net sales to cur- rent assets (working capital). The working capital turnover of the ISO 500 in 2018 and 2019 was, 1.83 and 1.79, respectively. In 2020, it continu- ed its downward trend and was recorded at 1.61. In 2021, it remained broadly unchanged with 1.62. Equity turnover increased. Equity turnover is another indicator of an enterprise’s effi- ciency and productivity and is calculated as net sales divi- ded by equity capital. After hitting 3.46 in 2019, the equity turnover of the ISO 500 dropped to 3.25 in 2020 as fluc- tuations in domestic and international demand shackled sales growth. In 2021, the high rate of growth in domestic and international sales propelled the equity turnover rate to reach 3.71. The sectors with the highest equity turnover in 2021 were refined petroleum products with 164.17, and jewellery with 31.36. The lowest ratio meanwhile was observed in mining and quarrying at 0.95. TURNOVER RATIOS - 2021 1.621.093.71 Asset Turnover Equity Turnover Working Capital Turnover ASSET TURNOVER RATIO 2 1 0 201720182019202120202016 0.91 1.04 1.12 1.091.09 1.03 In 2021, high rates of growth in domestic and international sales propelled the equity turnover rate.OCTOBER 2022 73 Sectoral Turnover Ratios - 2021 Sectors Asset Turnover RatioEquity Turnover Ratio Operating Capital (Working Capital) Turnover Ratio Top 500 Private Enterprises Public Enterprises Top 500 Private Enterprises Public Enterprises Top 500 Private Enterprises Public Enterprises 05-08 Mining and quarrying0.430.580.270.951.100.721.000.921.27 10Manufacture of food products 1.441.480.945.134.69-6.331.911.991.09 11Manufacture of beverages 0.380.38-1.451.45-0.760.76- 12Manufacture of tobacco products0.770.77-3.493.49-0.930.93- 13Manufacture of textiles 0.710.71-2.252.25-1.051.05- 14Manufacture of wearing apparel1.311.31-3.593.59-1.881.88- 16 Manufacture of wood and of products of wood and cork (except furniture) 0.880.88-3.133.13-1.481.48- 17Manufacture of paper and paper products0.860.86-2.312.31-1.311.31- 19 Manufacture of coke and refined petroleum products 1.461.46-164.17164.17-2.602.60- 20Manufacture of chemicals and chemical products1.001.001.002.692.931.161.431.411.70 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 0.750.75-1.231.23-1.121.12- 22Manufacture of rubber and plastic products1.021.02-3.523.52-1.351.35- 23 Manufacture of other non-metallic mineral products 0.540.54-1.671.67-1.061.06- 24Manufacture of basic metals1.481.48-4.344.34-1.961.96- 25 Manufacture of fabricated metal products (except machinery and equipment) 0.941.010.532.402.760.971.141.200.71 26Manufacture of computer, electronic and optical products0.460.46-1.431.43-0.600.60- 27 Manufacture of electrical equipment 1.311.31-4.884.88-1.661.66- 28Manufacture of machinery and equipment N.E.C.1.111.11-2.162.16-1.351.35- 29 Manufacture of motor vehicles, trailers and semi-trailers 1.701.70-6.346.34-2.242.24- 30 Manufacture of other transport equipment 0.330.33-3.743.74-0.420.42- 31Manufacture of furniture1.201.20-2.062.06-1.631.63- 32 Other manufacturing 8.648.64-31.3631.36-9.429.42- 32.1Manufacture of jewellery, bijouterie and related articles 8.648.64-31.3631.36-9.429.42- 35 Electricity, gas, steam and air conditioning supply 0.560.470.943.169.071.351.751.671.95 Total 1.091.120.573.713.941.301.621.631.40 EFFICIENCY AND PRODUCTIVITY74 OCTOBER 2022 Labor productivity saw a 64.6 percent inc- rease. Labor productivity is an important productivity indicator for the industry as well as industrial enterprises. The ISO 500 survey calculates labor productivity as the ratio of production-based sales to the number of employees. Following a 15,4 percent increase in 2019 and a 12,1 percent increase in 2020, the ISO 500’s net producti- on-based sales per employee enjoyed a significant jump of 64.6 percent to hit TL 2,705,400. This development also points to the fastest increase in labor productivity in recent years. The increase in produ- ction-based sales per employee corresponds to a 20.9 percent increase in real terms (adjusted for year-end CPI inflation). NET PRODUCTION-BASED SALES PER EMPLOYEE BY SECTORS (TL) As is known, due to the pandemic in 2020, producti- on was interrupted, employees had health problems, working hours were shortened and labor productivity dropped. In 2021, all these conditions improved, thus increasing the working hours and performance of the labor force. Replacement investments for machinery and equipment boosted labor productivity and high ca- pacity utilization rates stemming from increased sales figures also made a positive contribution to the rise in labor productivity. Although production-based sales per employee in 2021 increased in absolute terms across all sub-sectors compared to 2020, there were significant differences among sectors. Based on their net production-based sales per employee, the sectors with the highest labor productivity in 2021 were, in order, the manufacture of jewellery, refined petroleum products, and basic metals. These three sectors carried over their top three positi- ons from 2020. Manufacture of jewellery, bijouterie and related articles Manufacture of coke and refined petroleum products Manufacture of basic metals Manufacture of tobacco products Manufacture of chemicals and chemical products Manufacture of wood and of products of wood and cork (except furniture) Electricity, gas, steam and air conditioning supply Manufacture of paper and paper products Manufacture of beverages Manufacture of motor vehicles, trailers and semi-trailers Mining and quarrying Manufacture of electrical equipment Manufacture of computer, electronic and optical products Manufacture of fabricated metal products (except machinery and equipment) Manufacture of machinery and equipment, not elsewhere classified Manufacture of rubber and plastic products Manufacture of other non-metallic mineral products Manufacture of food products Manufacture of other transport equipment Manufacture of basic pharmaceutical products and pharmaceutical preparations Manufacture of textiles Manufacture of furniture Manufacture of wearing apparel 010.000.00020.000.00030.000.000 575,358 707,987 1,011,146 1,140,466 1,365,164 1,669,825 1,706,586 1,743,176 1,797,182 1,815,111 1,917,637 2,107,454 2,360,041 2,617,048 2,815,160 3,306,435 3,602,674 3,677,571 4,198,214 5,077,014 6,536,423 24,772,892 27,178,721OCTOBER 2022 75 Labor Productivity [Production-based Sales (Net) / Number of Employees] (at Current Prices, TL) Sectors20202021 05-08Mining and quarrying1,444,8642,360,041 10Manufacture of food products1,189,6731,669,825 11Manufacture of beverages1,977,3602,815,160 12Manufacture of tobacco products3,151,9995,077,014 13Manufacture of textiles612,5771,011,146 14Manufacture of wearing apparel405,479575,358 15Manufacture of leather and related products863,892- 16 Manufacture of wood and of products of wood and cork (except furniture) 1,840,3303,677,571 17Manufacture of paper and paper products1,706,4683,306,435 19Manufacture of coke and refined petroleum products10,988,49524,772,892 20Manufacture of chemicals and chemical products2,082,6044,198,214 21 Manufacture of basic pharmaceutical products and pharmaceutical prepa- rations 814,9201,140,466 22Manufacture of rubber and plastic products1,109,2271,743,176 23Manufacture of other non-metallic mineral products1,168,6831,706,586 24Manufacture of basic metals3,439,3206,536,423 25Manufacture of fabricated metal products (except machinery and equipment)1,139,4611,815,111 26Manufacture of computer, electronic and optical products1,313,4581,917,637 27Manufacture of electrical equipment1,315,0602,107,454 28Manufacture of machinery and equipment N.E.C.1,069,4481,797,182 29Manufacture of motor vehicles, trailers and semi-trailers1,939,7692,617,048 30Manufacture of other transport equipment789,8401,365,164 31Manufacture of furniture501,849707,987 32Other manufacturing18,894,83627,178,721 32.1Manufacture of jewellery, bijouterie and related articles 18,894,83627,178,721 35Electricity, gas, steam and air conditioning supply3,013,1643,602,674 Total1,643,8822,705,400 EFFICIENCY AND PRODUCTIVITYTECHNOLOGICAL ACTIVITIES Technological activities have become one of the leading factors shaping the competitiveness and hence the profitability and productivity of industry and industrial enterprises.OCTOBER 2022 77 Technological activities have become one of the leading factors shaping the competitiveness, profitability and productivity of industrial enterprises. Accordingly, technological activities have been assessed as a separate topic of the ISO 500 survey since 2013. The technological activities section of ISO 500 contains two main sets of data. The first is the R&D expenses of the ISO 500. The second data set is the breakdown of the ISO 500 sectors by technology intensity. The ratio of R&D expenses to producti- on-based sales was down. The ISO 500 survey also compiles data on the R&D expen- ses of industrial enterprises and conducts sector-specific analyses. The survey data for 2021 reveals that the R&D expenses of the ISO 500 was TL 8.97 billion, indicating a rise of 43.8 percent over 2020. In other words, when adjusted for the year-end CPI inflation, there was an increase of 5.7 per- cent in real terms. The ratio of R&D expenses to produc- tion-based sales, which was 0.53 percent in 2020, saw a drop in 2021, stopping at 0.44 percent. This decline stem- med from a significantly large gap between the increase rates of production-based sales and R&D expenses, with the former being the highest. According to the survey data, the three sectors with the highest R&D expenses in 2021 did not change YoY and were, in order, the manufacture of motor vehicles, elect- ronic products and electrical equipment. The enterprises in these top three sectors accounted for 62.9 percent of the total R&D expenses of the ISO 500 in 2021. Enterprises within the manufacture of motor vehicles, which have increased their R&D expenditures significant- ly in recent years, also made the highest contribution to the increase in the total R&D expenses of the ISO 500 in 2021. CHANGES IN R&D EXPENSES 5,945.5 0.58% 2019 8,971.4 0.44% 2021 6,237.3 0.53% 2020 3,837.4 0.44% 2018 R&D EXPENSES (TL MILLION) Survey Data R&D EXPENSES / PRODUCTION-BASED SALES (NET) (%)78 OCTOBER 2022 Decrease in the number of enterprises engaged in R&D. The gradual increase in the number of ISO 500 enterpri- ses with R&D expenses since 2013 continued until 2018 and the number of enterprises engaged in R&D remained stagnant in the three years that followed. The number of enterprises engaged in R&D, which was 262 in 2019 and 271 in 2020, dropped to 265 in 2021. This decrease can be mostly attributed to the enterprises ope- rating in the food sector. NUMBER OF ENTERPRISES ENGAGED IN R&D 0 38 33 27 24 20 19 18 14 14 11 8 7 6 6 6 5 4 2 1 1 1 10203040 Manufacture of food products Manufacture of motor vehicles, trailers and semi-trailers Manufacture of chemicals and chemical products Manufacture of basic metals Manufacture of electrical equipment Manufacture of textiles Manufacture of rubber and plastic products Manufacture of fabricated metal products (except machinery and equipment) Manufacture of machinery and equipment, not elsewhere classified Manufacture of other non-metallic mineral products Manufacture of wearing apparel Mining and quarrying Manufacture of basic pharmaceutical products and pharmaceutical preparations Manufacture of other transport equipment Manufacture of paper and paper products Manufacture of furniture Manufacture of computer, electronic and optical products Manufacture of coke and refined petroleum products Electricity, gas, steam and air conditioning supply Manufacture of beverages Manufacture of wood and of products of wood and cork (except furniture) 300 250 200 150 100 50 0 NUMBER OF ENTERPRISES ENGAGED IN R&D 201720182019202020212016 239 254 276 262 271 265OCTOBER 2022 79 R&D Expenses (TL) Sectors Number of Enterprises Engaged in R&D R&D Expenses Number of Enterprises Engaged in R&D R&D Expenses 05-08Mining and quarrying640,780,130773,325,252 10Manufacture of food products45199,638,52138248,368,871 11Manufacture of beverages34,941,45315,079,097 12Manufacture of tobacco products---- 13Manufacture of textiles20113,587,86719117,801,893 14Manufacture of wearing apparel959,863,898868,664,689 16 Manufacture of wood and of products of wood and cork (except furniture) 28,583,45417,761,550 17Manufacture of paper and paper products614,182,614637,524,194 19Manufacture of coke and refined petroleum products240,683,376246,724,327 20Manufacture of chemicals and chemical products24221,701,23527367,658,770 21 Manufacture of basic pharmaceutical products and pharmaceutical preparations 6194,864,8836238,544,763 22Manufacture of rubber and plastic products1796,065,00018140,912,747 23Manufacture of other non-metallic mineral products12114,155,39211194,699,887 24Manufacture of basic metals22140,021,42324127,796,776 25 Manufacture of fabricated metal products (except machinery and equipment) 15229,295,39714508,552,638 26Manufacture of computer, electronic and optical products5998,654,12241,267,020,165 27Manufacture of electrical equipment21753,701,952201,057,475,611 28Manufacture of machinery and equipment N.E.C.12195,158,94314244,145,361 29Manufacture of motor vehicles, trailers and semi-trailers322,314,420,761333,315,114,770 30Manufacture of other transport equipment5468,282,8496864,618,999 31Manufacture of furniture426,769,293539,397,159 32Other manufacturing---- 32.1Manufacture of jewellery, bijouterie and related articles ---- 35Electricity, gas, steam and air conditioning supply2174,0001240,000 Total2716,237,295,8932658,971,427,519 Survey Data 20202021Next >