Manufacturing – Most Attractive Locations
Malaysia has emerged as the most attractive destination for locating manufacturing units among Asian countries. It is followed by Taiwan, South Korea, Thailand and China. India is on 24th place, ahead of counties like Germany, Spain, Australia and Italy
This is revealed by the Global Manufacturing Index 2014 by Cushman & Wakefield, a US based firm which began the exercise in 2013. The Index ranks the 30 largest countries in terms of manufacturing output as defined by UNCTAD.
The Index for 2014 ranks the countries in the following manner:
1-Malaysia, 2-Taiwan, 3-South Korea, 4-Thailand, 5-China, 6-Canada, 7-Russian Federation, 8-Indonesia, 9- United States, 10-Mexico, 11-Turkey, 12-Switzerland, 13-Poland, 14-Venezuela, 15-South Africa, 16-Sweden, 17-Austria, 18-United Kingdom, 19-Japan, 20-France, 21-Arrgentina,22-Netherlands, 23-Brazil, 24-India, 25-Spain, 26-Germany, 27-Australia, 28-Ireland, 29-Italy, 30-Belgium.
Canada is said to be the least risky destination for manufacturing in the entire sample of 30 countries. Russia is stated to be the least expensive location as property registration is least costly and electricity for industrial usage too is considered low priced. China scores well due to cheaper labour cost but is high on risk parameter.
The ranking is based on 40% weightage for conditions (i.e., Talent /labour force, Logistics and access to markets, business environment, Time to first supply, sustainability, corporate responsibility), 20% for Risk (Natural disaster risk, economic risk, corporate risk, Energy risk), and 40% for cost (i.e., Manufacturing labour cost, Electricity for Industrial/heavy use (Price per hour), construction building cost, registering property cost)
The survey provides another list of 15 nations as high growth countries. These are:
1-Estonia, 2-Vietnam, 3-Lithuania, 4-Philippines, 5-Costa Rica, 6-Singapore, 7-Bulgaria, 8-Tunisia, 9-Ukraine, 10-Hungary, 11-Sri Lanka, 12-Morocco, 13-Solvakia, 14-Czech Republic, 15-Honduras.
In the emerging markets list, Estonia is regarded as a leading global nation in terms of technology and boasts some of the fastest broadband speeds in the world. The country possesses a high internet penetration rate of almost 80% and held online voting for the elections in 2007. According to the Economist, high-tech industries now account for around 15% of Estonia’s GDP.
A recent survey conducted by the EIU suggested that Vietnam is anticipated to be the fourth fastest growing retail market in the world in 2014, presenting opportunities to retailers and manufacturers of fast-moving consumer goods alike as the sector expands.