WORLD: China leads in manufacturing competitiveness
China, the world's largest producer of clothing and textiles, is not only ranked as the most competitive manufacturing nation in the world, but will continue to hold this position in five years' time, a new survey says.
Other emerging nations such as India and Brazil are also set to challenge manufacturing stalwarts like the US, Germany and Japan over the next five years, according to the 2013 Global Manufacturing Competitiveness Index report from Deloitte and the US Council on Competitiveness.
While the survey of more than 550 chief executive officers (CEOs) and senior leaders at manufacturing companies around the world is not industry specific, it confirms that the landscape for competitive manufacturing is in the midst of a massive power shift.
Nations such as the UK, France, Italy, Belgium, the Netherlands, Portugal, Poland and the Czech Republic, are all expected to experience a dramatic decrease in their ability to compete.
The strongest driver of competitiveness is seen as access to talented workers, a country's trade, financial and tax system, and then the cost of labour and materials.
"America and Europe have continued to watch emerging markets mature and become formidable competitors over the past decade," said David Raistrick, UK manufacturing leader at Deloitte.
In five years key emerging nations are expected to vault forward in the Index: Brazil jumps from its current eight place slot to third place and India jumps from fourth to second place. China remains firmly in first place.
While the Americas region will continue to show significant manufacturing prowess, Asia will have ten of the top 15 most competitive nations within the decade.
"Frontier markets in Asia such as Vietnam and Indonesia are on the rise," says Raistrick.
The global CEO survey results echo the view that while China and India are still prominent in discussions, manufacturers are turning their focus to these frontier markets for growth to capture both the growing local consumer demand and to serve as strategic manufacturing hubs in the global value chain."
- DENIM DAYS: Jeans innovation bursting at the seams
- Apparel buyers point to potential in Africa
- Rana Plaza two years on: Challenges and concerns
- China undisputed giant of garment exports
- Australian brands lack supply chain visibility
- Gap’s woes “not so easy to fix”
- Myanmar garment workers strike deal
- Nepal earthquake prompts Bangladesh factory checks
- Authentic Brands acquires Jones New York
- Quiksilver shareholder calls for sale