IndustryToday, it is thought that the economic growth and the increase in welfare will be possible thanks to the industrialization and export-based production. It is also accepted that development depends on the implementation of planned and innovative industrialization policies. Because manufacturing industry is the locomotive of economic growth and can transform the local resources into a different product, it is strategically important in reducing both national and regional external dependence. The economic development of a region is directly related to the investments and production capacity in the manufacturing industry.

Manufacturing industry is not well developed in TRA2 Level II Region which consists of Ağrı, Kars, Iğdır and Ardahan, and the regional economy is mostly dependent on agriculture and stockbreeding. According to 2008 data of TÜİK, the share of gross added value in industry sector is 27,2% in the country and it is limited with 12,6% in TRA2 Region. The shares of agriculture and services sectors are respectively 24.6% and 62.8%. The share of agriculture sector in gross added value is 8.5%.

When the data of 2004 and 2008 are compared, it can be interpreted that there is a transition from agriculture to industry and services sector in terms of added value . It is because the organization of Small Industry Sites and Organized Industry Side has not completed between the subject years, and much more industrial businesses become active when it is compared with the previous years. Any inference cannot be made about the developments regarding the periods after this year, because the last official statistics on the subject were obtained in 2008.

Agriculture sector has provided the highest employment rate with a ratio of 55,8% in TRA2 Region in 2011. The service sector follows the agriculture sector with its share of 30.5%. The share of employment by the industry sector in total employment is 13.7%.

Between 2009 and 2011, according to the distribution ratio of the employment on the basis of sectors in TRA2 Region, the number of the employees working in agriculture sector decreased up to 10% and the ratio in the industry sector has doubled.

When the employment data and the shares of the sectors in gross added value are compared, it is understood that the agriculture sector does not create the same value in terms of added value although it meets most of the employment need in the region. It is thought that this condition occurs because the potential of the regions is not used well, and the bad production problems seen for years in agriculture and stockbreeding activities are not prevented. Although the employment rate provided by the industry in the TRA2 Region meets the half of the country level, the industrialization process in the region has been significant in recent years.

According to the results of General Industry and Workplace Counting made by TUİK in 2002, the number of workplaces in production industry sector is 1,078 in TRA2 Region. 28.5% of the workplaces operating in the region are located in Ağrı.

In 2002, the distribution of 308 businesses of the manufacturing industry in Ağrı is 18,18% in food products and beverage production, 22,4% in forest and forestry products, 13,96% in metal products, 13,96% in textile products and clothes, 5,52% in machinery and equipment, and 25,97% in other manufacturing areas.

According to the data collected from the Revenue Administration in 2011, there are 2,130 workplaces which are active in the manufacturing industry sector in TRA2 Region. 34,64% of the said businesses are located in Ağrı. The number of businesses which are active in the manufacturing industry has increased more than two folds over the last decade. The highest increase in sub-manufacturing branches was 276% in the Metal Products sector.

There are 653 businesses of the manufacturing industry in total in Ağrı and its distribution is 23,71% in food products and beverage production, 21,95% in metal products, 15,04% in forest and forestry products, 11,38% in textile products and clothes, 4,2% in machinery and equipment, and 23,71% in other manufacturing areas.

In the provinces of TRA2 Region, which have started to move from agricultural structure to industrialization process in recent years, the businesses fall behind the country average in terms of brand, utility model, patent and industrial design issues which are highly important for the competition with other brands. The number of trademark applications and registrations made in the TRA2 Region is around 1 per mille in the general of country. Applications made for patent, utility model and industrial design are less. In the last 10 years, 1 patent, 1 utility model and 6 industrial design applications have been made in Ağrı and only 1 industrial design application made in 2012 has been confirmed and the application for geographical indication has not been realized.

Infrastructure of the industry is also imporant for the development of industry in one province or region in addition to the raw materials, transportation, human capital, cash capital stock, enterprise etc. The studies carried out for the planned development of agriculture and industry in Ağrı province have not resulted in as it is desired. Organized Industrial Zone in Merkez district of Ağrı has been active since 2010 but it has not attracted the investors. The Breeding Center, whose construction has been started in 2008 and the most of its infrastructure has completed, has not been active yet. There are 6 small industrial sites in Merkez, Patnos, Doğubayazıt, Eleşkirt, Diyadin and Tutak districts. These are corporate social responsibilities (CSR) in Merkez, Patnos, Doğubayazıt, Eleşkirt, Diyadin and Tutak districts.

Ağrı OSB is located on the 18th km of Ağrı-Doğubayazıt highway. Although the establishment decision of the Organized Industrial Site was taken in 1991, its place was determined in 1995 due to the occurring problems. The infrastructure construction of the 1st part of the Organized Industrial Site, which has two parts, was completed in 2010 and it has 58 parcels. The works have been recently started for the 2nd part which will have 57 parcels.