You are visiting a page on our global site but we noticed that you are in United States.
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Cushman & Wakefield’s Annual Manufacturing Risk Index Analyzes COVID-19’s Impact

6/25/2020

Manufacturing Sector Reshoring, Diversifying and Holding Inventory Amid Pandemic

CHICAGO, June 25, 2020 – As the manufacturing sector begins to reopen around the world, new trends are emerging in response to the global COVID-19 pandemic, according to new research by Cushman & Wakefield (NYSE: CWK).

Cushman & Wakefield analyzed the impact of COVID-19 on the global manufacturing sector and how countries around the world are currently positioned and projected to rebound. As manufacturers seek to safeguard production lines while plotting a path to profitability, Cushman & Wakefield’s 2020 Global Manufacturing Risk Index assesses the most suitable locations for global manufacturing among 48 countries in Europe, the Americas and Asia.

Within the report, countries have been ranked by their projected ability to restart their manufacturing sectors once confinement measures are relaxed and business starts to return to normal. This “bounce-back-ability” ranking is based on six key variables and is weighted according to its estimated contribution to manufacturing sector recovery.

China retains top position on the baseline scenario ranking, followed by the United States in second.

“Both China and the U.S. offer a large consumer market, ample labor supply and incentives at both the federal and state level, as well as an established infrastructure network,” said Jason Tolliver, global head of newCommerce research at Cushman & Wakefield. “With the rapid adoption of technology into production processes, the U.S. and its higher-cost workforce could start to be better aligned to compete with China for manufacturing jobs.”

Baseline Rankings

Country

2019

2020

China

1

1

United States

2

2

India

4

3

Czech Republic

6

4

Canada

5

5

 

“We’re seeing a severe disruption in economic activity across the board and the data we’ve been able to accumulate has shown the benefits and pitfalls of our global interconnectivity,” said Lisa Graham, EMEA Head of Industrial Research at Cushman & Wakefield. “However feasible and desirable, reshoring on a mass scale is not realistic and will not happen in the immediate term. Instead, to build resilience in the event of a second pandemic wave or second lockdown period, manufacturers are more likely to address the two most pressing vulnerabilities: materials and component sourcing and supply chain disruptions.”

The report also examined political and economic risk factors, showing Canada topping the list in 2020, up one spot from 2019 and pushing the United States into the second spot. Singapore jumped from sixth place to third, Germany moved from seventh to fourth and China rounded out the top five.

Risk Ranking

Country

2019

2020

Canada

2

1

United States

1

2

Singapore

6

3

Germany

7

4

China

5

5


The third category studied was overall cost ranking, including labor and operating costs. In this category, this year’s MRI cost scenario rankings reflect the broad impact of the US-China trade dispute on regional positioning. While China retains its lead position, Vietnam and India jumped to second and third positions respectively.

“The manufacturing shift towards Southeast Asia has been a long time in the making. As minimum wages in China grew, more orders for labor intensive products, such as clothes, toys and shoes, shifted to less expensive locations,” said Tolliver. “However, despite government initiative to attract manufacturers by Southeast Asian countries, China retains a clear infrastructure advantage with the ability to efficiently move goods via road, rail or sea transport.”

Cost Ranking

Country

2019

2020

China

1

1

Vietnam

4

2

India

6

3

Malaysia

3

4

Indonesia

5

5


“The current pandemic leaves many unanswered questions as to what is in store for the global manufacturing sector,” said Tolliver. “We’re optimistic about its future, but it will ultimately depend on the industry’s components that are currently flourishing, as well as those countries and manufacturers that are still operable during the current onset of new challenges.”

Download the 2020 Global Manufacturing Risk Index.


About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter

Cushman & Wakefield Media Contact

Michael Boonshoft New York Communications
Michael Boonshoft

Director, Americas PR & External Communications • New York

RECENT INSIGHTS

Tech Cities EMEA
Article • Technology

Regional and Emerging Tech Hubs in EMEA

Beyond the global tech hubs in Western Europe, employers have expanding operations into Central Europe.
Dimitris Vlachopoulos • 8/8/2022
Tech Cities
Article • Workplace

Tech Cities: An Evolution in Talent, Location, and the Workplace

As global tech companies consider locations top tech markets, finding the right place is just the start. From emerging tech to publicly traded, a tech company’s dynamic needs go beyond just location strategy and expand into creation workplace ecosystems that attract, engage and retain talent.
Erica Ruder • 8/8/2022
People Walking - Edge Vol 7
Research • Topical Report

The Edge Magazine | Volume 7

Cushman & Wakefield’s global thought leadership magazine covers the influential trends and ideas impacting the commercial real estate (CRE) industry and more.
5/10/2022

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.

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