Where in the World? Manufacturing Index 2015
It is now official: China is no longer the favourite country to build new factories. While countries from Asia Pacific (APAC) still dominate the top half of the Index, highlighting the importance of the region as a global manufacturing powerhouse, there remains some underlying volatility. Rising labour and perational Costs in China, the world’s largest manufacturer in terms of output are adding to the attractiveness of lower Cost regions with Malaysia, Indonesia and Vietnam all ranking strongly as a result, the latter topping the Growth Index. Rising global operating Costs are contributing to a trend for re-shoring facilities to the West with stronger prospects for the US (ranked fourth) and certain European locations. Supply chain management and perceptions surrounding brand and where a product is produced are also high on a manufacturer’s agenda, adding to the attraction of manufacturing in home markets.