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Top 12: Most Attractive Manufacturing Destinations 2021

Top 12: Most Attractive Manufacturing Destinations 2021

India has overtaken the United States (US) to become the second-most sought-after manufacturing destination globally, driven mainly by cost competitiveness, according to real estate consultant Cushman & Wakefield.

China remains at number one position, the consultant said in its 2021 Global Manufacturing Risk Index, which assessed the most advantageous locations for global manufacturing among 47 countries in Europe, the Americas and Asia-Pacific (APAC).

The US is at third position, followed by Canada, Czech Republic, Indonesia, Lithuania, Thailand, Malaysia and Poland.

In last year's report, the US was at second position while India ranked third.

The rankings in the report are determined based on four key parameters, including the country's capability to restart manufacturing, business environment (availability of talent/labour, access to markets), operating costs, and the risks (political, economic and environmental).

The baseline ranking for top manufacturing destinations is determined on the basis of a country's operating conditions and cost effectiveness. China has retained its top position and continues to diversify its manufacturing base. The report stated that even with the Biden administration’s concerns about trade, China continues to diversify its base to move up the value chain to focus on telecom, high-tech, and computers. Guangdong and Jiangsu regions are spearheading its electronic components and automotive manufacturing, while  Zhejiang and Liaoning focus on chemicals and natural resources.

The US is a desirable hub as it offers a large consumer market as well as incentives at both state and federal levels. But its rapid adoption of technology and policies could make it a tough competitor to China, stated the report.

Keterangan Gambar (© Pemilik Gambar)

When it came to the cost scenario, India and Vietnam were overtaken by Indonesia, while China retained its lead position. India slipped to the third rank, while Indonesia moved to the second from the fifth spot.

The report stated that Jakarta’s dipping rents have a part to play in cost effectiveness that pushed Indonesia up by three spots. While wage costs in Vietnam are cheaper than in China, it is facing increasing competition from lower cost locations. Similarly, Thailand’s cost profile moved it to the fifth spot from eighth. Colombia that has labour costs similar to Asia’s climbed from 15th spot to the eighth spot.

But when it comes to the risk scenario that takes into account lower levels of economic and political risks, India is nowhere near the top. India has been clubbed in the third quartile of the rankings along with Malaysia, Belgium, Indonesia, Bulgaria, Romania, Thailand, Hungary, Colombia, Italy, Peru and Vietnam. On top of the first quartile is China, followed by Canada, US, Finland, Czech Republic. The second quartile has countries like Lithuania, France, Netherlands, Spain, Poland, Japan, UK etc.

Likewise, when it comes to the bounce back rating that takes into account a country’s ability to restart its manufacturing sector, India is in the fourth quartile with Sri Lanka, Mexico, Vietnam, Indonesia, Bulgaria, Thailand, Tunisia, Peru, Philippines and Venezuela.

Source:

Businesstimes.in

rediff.com

Bangkokpost.com

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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