Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Technology Adoption Contributes To China Securing Top Spot In Index Of Global Manufacturing Locations

25/04/2019
  • Cushman & Wakefield’s Manufacturing Risk Index report shows formerly low-cost locations such as China and India are moving up the value production chain through country-sponsored support of technological adoption
  • Growing concern for intellectual property protection, combined with skilled labour availability, keeps United States top when the index is weighted to minimise geopolitical risk
  • Low-cost locations in South East Asia still highly attractive for labour-intensive manufacturing
  • European production lines, and the free flow of goods, potentially threatened by ‘no-deal’ Brexit
No. Baseline Cost Risk
1 China China United States
2 United States Malaysia Canada
3 India Vietnam Czech Republic
4 Canada c Indonesia China
5 Czech Republic India Singapore
6 Poland Thailand Germany
7 Malaysia Lithuania Denmark
8 Lithuania Lithuania Finland
9 Hungary Sri Lanka Austria
10 Thailand Poland United Kingdom
11 Romania Mexico Ireland
12 Portugal Peru Portugal
13 Indonesia Czech Republic Poland
14 Singapore Russian Federation Japan
15 Vietnam Philippines Switzerland
16 Mexico Columbia Lithuania
17 Bulgaria Hungary Australia
18 Turkey Turkey Netherlands
19 Republic of Korea Bulgaria Slovakia
20 Colombia Morocco Republic of Korea

 

Dr. Dominic Brown, Head of Research for Asia Pacific said, “Low-cost locations in Asia Pacific are still attractive for labour intensive manufacturing and will continue to be sought-after given its cost competitiveness. We are seeing this play out with the China+ manufacturing strategy, which is helping to drive growth in the industrial sector in South East Asia. Developed markets with robust regulatory frameworks such as Australia, Singapore and Japan offer companies a reasonable level of protection from geo-political and loss of intellectual property (IP) risks.”

The rankings also reflect an element of protectionism and nationalism putting global and regional and supply chains at risk. In Europe, the outcome of the ongoing Brexit negotiations will redefine regional production lines as well as reshape domestic and international flow of goods.

Countries which invest in platforms that facilitate flows in and out of production lines will succeed. China’s seamless supply chain connections have resulted in substantial investment in infrastructure and multi-modal transport, including the New Silk Road rail and maritime projects, in addition to incentives. These factors are off-setting concerns regarding intellectual property.

Related Insights

Reset 2022
Research • Insights

Reset 2022 | A Three-Part Outlook Series

A three-part series that reassesses Asia Pacific’s macro-economic environment within current global conditions — and what it means for commercial real estate investors and occupiers.
13/09/2022
APAC Office of the Future Revisited
Research • Workplace

Asia Pacific Office of the Future Revisited

Our latest insight establishes three realities through the Asia Pacific lens: office space is still in demand, hybrid is here to stay, and the role of the office has changed. We explore the nuances, challenges and opportunities in the region.
15/06/2022
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS