Turkish metal manufacturers partnered with McKinsey to launch MEXT tech hub

The Turkish Employers Association of Metal Industries (MESS) partnered with McKinsey & Company to establish MEXT, a tech center years in the making that equips manufacturers with digital transformation tools and strategies.

Turkey is rapidly positioning itself as a hub for digitally advanced and environmentally conscious manufacturing, driven by strategic initiatives and collaborations. The establishment of the Manufacturing Excellence and Transformation Center (MEXT) is the most recent move from Turkish manufacturers doing their best to stay competitive.

Recognizing the need for Turkish manufacturers to remain competitive in a rapidly evolving global landscape, MESS partnered with McKinsey & Company in 2017 to establish MEXT. This comprehensive innovation and learning hub provides tools, strategies, training programs, and access to a global technology network.

Establish in 1959, MESS is a major force in the Turkish economy, representing over 230,000 employees across vital industries and accounting for 40% of the nation’s manufacturing exports. Membership in MESS includes big names in manufacturing like Bosch, Mercedes Benz, Ford, and Fiat, among others.

Digital and green transformation

MEXT empowers its over 650 member companies to strive for both digital and green transformations. AI has recently also been integrated as a core part of MEXT’s overall mission – the center leads the AI European Digital Innovation Hub (EDIH).

“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,” notes Bengi Korkmaz, partner at McKinsey & Company.

MEXT, which opened its 10,000-square-meter facility in 2020, operates through four key pillars: A digital factory for testing and showcasing digital and sustainable applications, capability-building programs targeting all organizational levels, a global partner ecosystem of over 100 thought leaders and technology companies, and a technical consulting and advisory arm.

“Having something very tangible and actionable definitely helps in the transformation journey,” says MEXT General Manager Efe Erdem. “Those four elements combined ensure we are giving comprehensive support to our industrial ecosystem so they can future-proof the digitization and sustainability of their operations.”

Through MEXT, members of MESS gain access to maturity assessments and a broad network of global partners, including the World Economic Forum, Harvard University, and Microsoft. The center’s digital factory features over 170 digital and sustainable use cases for demonstration and testing. It also offers ESG tools to assist members, particularly those in high-emission industries like automotive, in evaluating and improving their sustainability practices.

MEXT’s capability-building programs have already trained over 31,000 participants, ranging from CEOs to frontline workers. These initiatives also include projects focused on diversifying industries, like empowerment program aimed at upskilling and employing women in manufacturing roles.

Impact

The impact of MEXT has been significant, with over hundreds of companies across 15 industries benefiting from its services. Outcomes include a reported 15% improvement in productivity and the deployment of over 170 digital solutions. Furthermore, MEXT has fostered dialogue around sustainability, bringing together over 1,000 manufacturing executives to discuss Turkey’s net-zero goal.

Today, MEXT extends its services to six countries: Turkey, Germany, Romania, Azerbaijan, the UAE, and Saudi Arabia. McKinsey continues to support MEXT as a strategic partner, aiding in the development of a digital transformation roadmap for companies and supply chains and expanding services into new areas like AI, sustainability, finance, and human resources.

“We are not only touching the C-suite and mid-level managers, but 70% of the total number of people we reached out to are shop floor operators. We have demonstrated to the workforce that when they upskill themselves, they are better equipped for their future going forward,” says Erdem.

MEXT has established an official partnership with the European Innovation Council and has been designated as a European Digital Innovation Hub for AI, positioning Turkey to drive AI adoption 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,” notes McKinsey & Company 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 artificial intelligence.”