TEXTILES AND GARMENT
The textile and garment industry is one of the leading sectors with its great weight in production and employment in our country’s economy, along with many countries in the economic development process, due to the added value created in the world’s production process and its high share in export revenues.
The textile and ready-to-wear industry, with its high added value and export revenues, is one of the driving forces of production and employment both globally and in the Turkish economy. Operating largely on an export-oriented basis, the sector is supported by garment workshops and factories to meet domestic and international demand.
However, during the COVID-19 pandemic, the industry faced significant challenges, including production shutdowns, currency fluctuations, raw material supply shortages, declining demand, logistical disruptions, and reduced labor productivity. These developments further exposed the sector’s vulnerabilities and heightened the need for insurance solutions.
As NART Insurance and Reinsurance Brokerage, we provide leading companies in the sector with comprehensive and up-to-date insurance services, closely monitoring evolving risks to deliver tailored protection.
The textile industry workflow consists of three main stages: cotton spinning, weaving, finishing processes, and ready-to-wear production. At these stages, businesses are typically exposed to the following risks:
Risks arising from moving machinery components
Fire hazards
Noise exposure risks
Occupational diseases related to dust
Risks from hazardous chemicals
Risks associated with work equipment
Risks related to chemical agents (dyes, acids, bases, salts)
Risks arising from non-ergonomic working conditions
In today’s highly competitive and challenging market environment, the textile industry—encompassing textiles, ready-to-wear, leather, yarn, fiber, primary manufacturing, ancillary facilities, as well as wholesale and retail outlets—faces a diverse range of complex and industry-specific risks. For each of these segments, the presence of effective risk management systems is essential.
Key risk areas include:
Mergers, acquisitions, and investments
Occupational health and safety
Environmental risks
Natural disasters and fires
Machinery breakdown and electronic equipment failures
Business interruption
Strikes, lockouts, and terrorism
Product liability and recalls
Employee liabilities
Supply chain and raw material risks
Credit risks
Cyber risks
