U.s. Jumps Five Spots On Cushman & Wakefield’s Manufacturing Index

Aug. 6, 2015 - PRLog -- NEW YORK CITY, Aug. 6, 2015 – Cushman & Wakefield today released its annual ranking of the 30 largest countries, according to manufacturing output and operational risk, as defined by UNCTAD (United Nations Conference on Trade and Development). The United States jumped an impressive five places from 2014 to land at number four, thanks principally to a low-risk environment and stronger energy platform both in terms of security and cost.

Where in the World? Manufacturing Index 2015 includes additional data sets designed to provide a more robust analysis of the manufacturing requirements, objectives and complexities of an even broader array of manufacturers, and the risk factors affecting global expansion or relocation within these 30 locations.

As customer expectations continue trending towards immediate and highly customized products, manufacturers face an ever-pressing need to amplify their adeptness while mitigating risks within manufacturing and supply chain operations. Those best positioned to weather individual market conditions, risks and costs as part of any relocation or expansion strategy, while remaining nimble enough to meet the niche demand of global consumers, are at a distinct competitive advantage.

Among this year’s findings:

AMERICAS

·         The highest ranking country from the Americas is the United States, at 4^th place, with the least risk globally.

·         Canada is close behind in 6th place, with Mexico ranking 14th.

·         Mexico continues to absorb a significant proportion of U.S. export-oriented middle and high-end manufacturing, and is also benefitting from stronger demand for low-end manufacturing.

APAC

·         The top three ranking countries are all located within the APAC region—with Malaysia retaining the #1 position; the dominance of the “APAC powerhouse” is underscored by the region securing seven places in the top 10.

·         The largest manufacturing country in the world, China, ranked #3 globally.

·         Growth in manufacturing output made Singapore one of the top 30 for the first time, and this is nearly all driven by high-end science or tech-based manufacturing.

EMEA

·         Turkey scored highest in the EMEA region at #8.

·         The Russian Federation, at #16, is the least expensive location in the index, with competitively low costs for registering property and electricity costs for heavy industrial usage.

·         Poland, United Kingdom and Netherlands ranked 12th, 15th and 17^th, respectively.

Mark Wanic, Cushman & Wakefield’s head of occupier services in the Americas, said: “There is a genuine sense that manufacturing is now making a comeback in the US as global demand appears to have turned a corner. The cost differential to cheaper markets, which contributed to a number of manufacturers moving ‘off-shore’, has now narrowed –with the US regaining a competitive edge.

“A more competitive energy platform, both in terms of cost and security, is adding to the US as a manufacturing location. In addition, supply-chain management is also collectively adding to the more positive outlook evident from our latest index ranking.”

This year’s rankings were assessed according to: costs, risks and conditions, which are further broken down into sub-categories that translate into more than 30 individual datasets, including labor costs, where to source raw materials and whether the facility needs to be close to a port or an airport or both.

Additionally, country level data has been replaced by last year’s regional and city level data to reveal not only which regions are the most suitable for varying requirements, but also highlights future scenarios for contingency planning.

With this final level of analysis being undertaken on a site-by-site basis, the most suitable locations have again been ranked to produce this year’s annual index, now available for download at the following link: http://www.cushmanwakefield.com/en/research-and-insight/2....

###

For more information, please contact:

Michole Brown

Cushman & Wakefield

Desk: 212-698-2515 / Mobile: 301-213-1323

***

Index criteria and weighting

Our report uses 36 data sources, which make up three key parameters identified as being crucial to manufacturers during site selection or expansion. These parameters are Costs, Risk and Conditions. Through on-going discussions with a number of major manufacturers our base scenario takes the example of a Highly Automated manufacturer, weighting these parameters as follows. Costs (40%), Risks (20%) and Conditions (40%).

Our main index

Ranks the 30 largest countries by manufacturing output, defined by the UNCTAD (United Nations Conference for Trade and Investment).