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You only have access to basic statistics. This statistic is not included in your account. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities. Premium statistics. Read more. Approximately You need a Single Account for unlimited access. Full access to 1m statistics Incl. In this report, we develop a global manufacturing scorecard that looks at five dimensions of the manufacturing environment: 1 overall policies and regulations; 2 tax policy; 3 energy, transportation, and health costs; 4 workforce quality; and 5 infrastructure and innovation.
For the analysis, we compiled data on 20 indicators and scored 19 leading nations on a point scale. The top ranked nations in overall manufacturing environment were the United Kingdom and Switzerland both with 78 points out of , followed by the United States 77 points , Japan 74 points , and Canada 74 points. We found these nations performed well due to their policies, cost considerations, workforce investments, and infrastructure. At the low end were nations such as Brazil 51 points , Indonesia 53 points , Mexico 56 points , Russia 56 points , and India 57 points.
Generally, these places do not have advantageous tax policies and are not making adequate investments in education or infrastructure. In addition, we compiled data on manufacturing output, manufacturing employment, and changes overtime. China is the top nation in terms of manufacturing output and the percentage of its national output that is generated by that sector.
Poland meanwhile has the highest percentage of its workforce employed in manufacturing, followed by Germany, Italy, Turkey, and South Korea. Poland meanwhile has the highest percentage of its workforce employed in manufacturing. There have been important changes over the past few decades in country rankings based on manufacturing output.
Most nations show fairly stable patterns over the past 40 years, but a few have increased their performance. One such example is India, which improved its output ranking from 14th in to sixth in In contrast, Spain had dropped in manufacturing performance from ninth in to 14th in The same is true for Russia, as it was ranked second in manufacturing output in but now has dropped to 15th in the world. Based on our analysis, we make a number of recommendations for improving the manufacturing environment.
Our suggestions include:. Poland is the leading country in terms of the percentage of its population employed in manufacturing see Table 2. A total of About There have been significant shifts in manufacturing employment between and see Table 3. In developed countries, manufacturing comprised In contrast, several regions have increased their focus on manufacturing.
Southeast Asia went from India increased from 9. Most countries have been fairly stable in their manufacturing output over the past few decades, but there have been some shifts since During this time period, one nation that improved considerably is India. It raised its output ranking from 14th in to sixth in In contrast, Spain dropped in manufacturing performance from ninth in to 14th in One of the important determinants of how countries perform is their overall manufacturing environment.
To assess this, we looked at five dimensions of the overall environment: policies and regulations; tax policy; energy, transportation, and health costs; workforce quality; and infrastructure and innovation see Appendix for details on measures and information sources.
Based on 20 indicators, we developed a point scale to rank countries on their manufacturing environment. The top-ranked nations were the United Kingdom and Switzerland. For overall policies, we included indicators on pro-business environment, a risk index, corruption, and open trade policies. Workforce quality included measures on K government spending, higher education spending, family income, labor productivity, and labor support. Based on these 20 indicators, we developed a point scale to rank countries on their manufacturing environment.
Table 5 shows that the top nations included the United Kingdom a score of 78 , Switzerland 78 , the United States 77 , Japan 74 , Canada 74 , and the Netherlands At the low end of our scale were Brazil a score of 51 , Indonesia, 53 , Mexico 56 , Russia, 56 , and India These countries lagged the other examined nations on a number of different dimensions. Table 6 lists the detailed breakdowns of our 20 indicators for each nation. This table shows how each country fared on these measures for the five dimensions.
As an illustration, the United Kingdom garnered top scores for its pro-business environment, risk index, lack of corruption, and corporate tax policies, but lower marks on infrastructure, patent filings, and higher education spending.
This was in contrast to Brazil, which did not perform well on its business environment, tax policies, higher education spending, infrastructure, and patent filings. In looking at the nations that did well on our manufacturing index, we found that they took manufacturing seriously and had a number of policies conducive to developing that sector.
We look at three different countries the United Kingdom, Switzerland, and the United States to see what they are doing to help manufacturing.
Beyond the currency angle, though, manufacturing there retains a strong presence because of its important role in the export economy. Over 70 percent of all U. The U. In the medium to long term, the U.
This is promising as 89 percent of manufacturers say they seek to build long-term customer loyalty overseas. National leaders will have to keep their eye on that fact in order to keep costs reasonable for production.
Specifically, the automotive industry and aerospace industry in the U. Contrary to the general trend across Europe, the automotive industry has achieved record growth and the country is positioned to hit an annual production target of two million vehicles by Ninety percent of all aerospace goods made in the U. The industry is well positioned as some of the most intricate aerospace parts like wings, engines, avionics, and systems for civil aircrafts are made within the country.
As Brexit negotiations unfold, the future of the industry likely will experience considerable turbulence if free-trade is stifled in any major way through rules or tariffs.
The country has transparent and fair processes, strong judicial effectiveness, and considerable economic and political stability due to its long-held international neutrality. Although the Swiss franc is currently a very strong currency, there is very little currency inconvertibility or transfer restriction risk and investors are free to convert and transfer funds in and out of Switzerland without the fear of restrictive policies.
Additionally, Switzerland prioritizes being a strong trading country; the combined value of imports and exports equals percent of its GDP and its applied tariff rate averages 0 percent. Although Swiss costs of production and a strong franc do pose some risks, the country has capitalized on its workforce advantages as well as its stable political environment to build one of the strongest manufacturing industries in the world.
The workforce talent and manufacturing quality in Switzerland are top-flight. The country has a large stock of highly skilled workers, and the value-add to their economy through their manufacturing industry is one of the highest in the world. Because their economy is developed and stable, they are home to some of the biggest pharmaceutical and computer product giants globally such as Novartis and Hoffman-La Roche.
The United States manufacturing sector has benefited from a talented workforce, advanced technology, and pro-business policies. Moreover, the gap in labor costs found in the United States in comparison to other countries has started to drop and likely will continue to drop as the cost of industrial robots falls. Disruptive technologies like additive manufacturing, 3D-printing, advanced robotics, and the utilization of the Internet of Things and Big Data are revolutionizing U.
John Deere, for example, has added sensors to some of its models and the company sells the data retrieved from these sensors to farmers in order to offer new insights and improve agricultural practices. For manufacturing growth to continue, the country should avoid tariff wars or overly restricted trade policies. The development of programs like the National Network for Manufacturing Innovation NNMI represent some of the biggest drivers in this advanced technology development.
NNMI brings together manufacturers, university engineering schools, federal agencies, non-profit organizations, and regional organizations to invest in novel manufacturing technology.
Nine manufacturing innovation institutes that are funded by the Department of Defense or the Department of Energy are a part of NNMI and their research areas cover technology developments from 3D printing to lightweight metals manufacturing. Advanced manufacturing technology development can be found throughout the United States. In Indiana for example, Rolls Royce, which makes jet engines, employs thousands of engineers. Zimmer Biomet makes surgical products in Warsaw, Indiana, a city that has become a national hub for orthopedic products.
Please enable Javascript for full functionality. MoS IT Mr. Rajeev Chandrasekhar inaugurates the first Internet Exchange Japanese investment in Indian IT and start-up ecosystem grows four times In August , SAP India and Microsoft announced the introduction of TechSaksham, a collaborative skilling initiative aimed at enabling young women from underprivileged regions to pursue careers in technology.
In July , TCS expanded its strategic partnership with Royal London, the largest mutual life insurance, pensions and investment company in the UK, to help the latter transform its pension platform estate and deliver market-leading services to members and customers. In July , Tata Technologies partnered with Stratasys, a 3D printing technology company, to provide advanced additive manufacturing technologies to the Indian manufacturing ecosystem.
In July , Tech Mahindra Foundation and Wipro GE Healthcare have joined forced to offer skilling and upskilling courses to students and healthcare technicians. The event will take place over three days beginning October 20, The meeting's topic this year is Inclusive Internet for Digital India.
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