The 2013 Global Manufacturing Competitiveness Index report prepared by the Deloitte Touche Tohmatsu Limited (DTTL) Global Manufacturing Industry group and the Council on Competitiveness, found that – of the 38 nations assessed – five developed economy nations were ranked in the top 10 today: Germany (ranked second), the US (third), South Korea (fifth), Canada (seventh) and Japan (tenth), while five emerging economy nations were also ranked in the top 10 today: China (first), India (fourth), Taiwan (sixth), Brazil (eighth) and Singapore (ninth).
The report predicts that emerging economy nations will “surge” to occupy the top three spots within five years, with China retaining the top spot, and India and Brazil moving up to claim the second and third rankings, respectively. Brazil’s jump from eighth to third is the largest jump expected over the next five years. And, Vietnam moves into the top 10 as the tenth most competitive nation.
“Through a regional lens, five years from now the Americas continues to show significant manufacturing strength with the US, Brazil, Canada and Mexico all in the top 15 most competitive nations,” the study noted.
But the continued shift to Asia is unquestionable with 10 of the top 15 most competitive nations in five years. And the message for European nations is sobering: only Germany among the European nations remains in the top 15 most competitive nations five years from now.
“Trade, financial and tax policies have now supplanted labour and materials costs, supplier networks, infrastructure, energy costs, and everything else as a more important driver of a nation’s competitiveness, demonstrating executives’ recognition of government leaders’ increasing efforts to use public policy as an enabler of economic development,” the report added.
