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Transforming Türkiye into a Digital & Sustainable Manufacturing Hub: Strategic Insights for Executives

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On this page: Opportunity | Solution | Impact

Analysis of Innovation and Learning Center in Turkish Manufacturing Industry

The Opportunity

Empowering Turkish manufacturers with innovation

The Turkish Employers Association of Metal Industries (MESS) has been a cornerstone of the Turkish economy since it was founded in 1959 to help lead the development of the country’s metal industry. MESS encompasses more than 230,000 employees across major industries, including automotive, machinery, durable goods, iron and steel, and cabling, making up 40 percent of Türkiye’s total manufacturing exports. It provides services like technology solutions, labor agreements, and a joint procurement platform to its members. “MESS works with the largest employers in the country, directly and indirectly affecting one million people,” says MESS President Özgür Burak Akkol.

Our members are learning to successfully navigate the fast pace of change and innovation. We aim to accelerate their adoption of digital and sustainability capabilities, from the board level to frontline workers.

Özgür Burak Akkol, MESS President

Today its manufacturers are embracing developments to stay competitive and resilient in a rapidly transforming global landscape. “Our members are learning to successfully navigate the fast pace of change and innovation,” says Özgür. “We aim to accelerate their adoption of digital and sustainability capabilities, from the board level to frontline workers.”

To fulfill this mission, MESS has partnered with McKinsey since 2017 to found and build a comprehensive innovation and learning center called MEXT that offers tools, strategies, trainings, and access to a global technology ecosystem. MEXT enables its members and network companies to achieve both digital and green transformation, having already reached more than 650 companies, recently also adding artificial intelligence as another pillar of its mission. MEXT is also the consortium leader of the AI EDIH in Türkiye (European Digital Innovation Hub).

“MESS proactively took the initiative to set up MEXT because they felt a strong sense of responsibility to prepare companies and workforces to become future-ready,” says McKinsey partner Bengi Korkmaz.

The Solution

A world-class transformation center

MEXT opened in 2020 and spans four key pillars: a digital factory, capability-building programs, a global partner ecosystem, and a technical consulting and advisory arm. Housed in a 10,000-square-meter space, it includes training facilities, office spaces, a co-working area, and a conference center.

Through MEXT, MESS members have access to capability building, maturity assessments, and a broad partner ecosystem of more than 100 global thought leaders such as the World Economic Forum, Harvard University, and global tech companies including Microsoft and SAP.

The center includes a digital factory to test and demonstrate digital and sustainable use cases, of which there are more than 170. It also offers access to ESG tools to help MESS members, particularly those in heavy emissions industries like automotive, assess their current sustainability standing and begin to chart their decarbonization path.

The 10,000-square-meter tech center includes training facilities, office spaces, a co-working area, and a conference center.

MEXT, a tech center that equips manufacturers with digital transformation tools

“This hub is inclusive of SMEs and multinational corporations. It’s open to all technology players and startups as a place to implement their technology,” says Efe. “Companies are able to witness the tangible value these use cases bring and they keep the technology center fresh with new content.”

MEXT also provides regular maturity assessments to help member plants and SMEs identify strengths and areas for improvement. The partner ecosystem supports collaboration and innovation, extending best practices to other sectors across the EU. For example, one program in partnership with a bank supports 100 SMEs with digital transformation maturity assessments, training them in ROI calculation and preparing them for future financing opportunities.

The Impact

Better customer outcomes and greater employee satisfaction

The impact of MEXT has been significant, with more than 650 companies across 15 industries already benefiting from services like upskilling, assessments, and consultancy and more than 31,000 people trained in digital and green transformation. Identified outcomes include a 15 percent improvement in productivity and deployment of over 170 digital solutions.

This work has also broadened the conversation around sustainability efforts, with more than 1,000 manufacturing executives across the country coming together at MEXT in 2022 to discuss Türkiye’s goal of a pathway to net zero by 2050.

Today MEXT offers its services in six countries: Türkiye, Germany, Azerbaijan, the United Arab Emirates, Romania, and Saudi Arabia. As a strategic partner, McKinsey is supporting MEXT in developing a roadmap for the digital transformation of companies and supply chains and further expanding services to new geographies and areas including AI, sustainability, finance, and HR.

The ecosystem of partners and collaborators will continue to grow. MEXT has an official partnership with the European Innovation Council and was recently designated as a European Digital Innovation Hub for AI, positioning Türkiye to drive AI adoption at scale in collaboration with EU countries.

“Many centers fail to catch up with new developments and lose their edge, but MEXT is a living and evolving center,” says McKinsey partner Cengiz Ulubas. “Through its strong member-focused leadership team, MEXT is continuously learning and evolving, already having expanded beyond digital to new areas like sustainability and AI.”

MEXT Technology Center has united industry, academia, and government in digital transformation efforts, creating a functioning ecosystem that fosters public-private collaboration and uses digitalization, sustainability, and artificial intelligence to help future-proof operations.

And it is helping upskill a new generation of workers. “We are not only touching the C-suite and mid-level managers, but 70 percent of the total number of people we reached out to are shop floor operators,” says Efe. “We have demonstrated to the workforce that when they upskill themselves, they are better equipped for their future going forward.”

FAQ

1. How many companies have benefited from MEXT’s services?

More than 650 companies across 15 industries have already benefited from MEXT’s services.

2. What is the main goal of MEXT?

MEXT aims to accelerate the adoption of digital and sustainability capabilities in Turkish manufacturing companies.

Conclusion

The Innovation and Learning Center established by MESS in partnership with McKinsey has proven to be a successful initiative in empowering Turkish manufacturers with innovation and digital transformation. The impact of MEXT is evident in the improved productivity, upskilling of workforce, and deployment of digital solutions across various industries. With a focus on sustainability and AI, MEXT is leading the way towards a more resilient and future-ready manufacturing ecosystem in Türkiye and beyond.

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