View
5
Download
0
Category
Preview:
Citation preview
2016 Global Manufacturing
Competitiveness Index
2 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
Country 2016 2013
Rank Trend
Rank Index score
China 1 100.0 1
USA 2 99.5 3 ▲
Germany 3 93.9 2 ▼
Japan 4 80.4 10 ▲
South Korea 5 76.7 5
United Kingdom 6 75.8 15 ▲
Taiwan 7 72.9 6 ▼
Mexico 8 69.5 12 ▲
Canada 9 68.7 7 ▼
Singapore 10 68.4 9 ▼
India 11 67.2 4 ▼
Switzerland 12 63.6 22 ▲
Sweden 13 62.1 21 ▲
Thailand 14 60.4 11 ▼
Poland 15 59.1 14 ▼
Turkey 16 59.0 20 ▲
Malaysia 17 59.0 13 ▼
Vietnam 18 56.5 18
Indonesia 19 55.8 17 ▼
Netherlands 20 55.7 23 ▲
China hangs on – barely - to the most competitive manufacturing nation ranking for
2016, but the US is very close and expected to take over the top spot in five years
2016 Global Manufacturing Competitiveness Ranking
Country Rank Index score
USA 1 100.0
China 2 93.5
Germany 3 90.8
Japan 4 78.0
India 5 77.5
South Korea 6 77.0
Mexico 7 75.9
United Kingdom 8 73.8
Taiwan 9 72.1
Canada 10 68.1
Singapore 11 67.6
Vietnam 12 65.5
Malaysia 13 62.1
Thailand 14 62.0
Indonesia 15 61.9
Poland 16 61.9
Turkey 17 60.8
Sweden 18 59.7
Switzerland 19 59.1
Czech Republic 20 57.4
Current Competitiveness Index Competitiveness Index in Five Years
3 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
Brazil continues to struggle with little optimism for significant improvement over the
next five years…
2016 Global Manufacturing Competitiveness Ranking
Country 2016 2013
Rank Trend
Rank Index score
Australia 21 55.5 16 ▼
France 22 55.5 25 ▲
Czech Republic 23 55.3 19 ▼
Finland 24 52.5 - -
Spain 25 50.6 33 ▲
Belgium 26 48.3 27 ▲
South Africa 27 48.1 24 ▼
Italy 28 46.5 32 ▲
Brazil 29 46.2 8 ▼
UAE 30 45.4 30
Ireland 31 44.7 37 ▲
Russia 32 43.9 28 ▼
Romania 33 42.8 29 ▼
Saudi Arabia 34 39.2 34
Portugal 35 37.9 35
Colombia 36 35.7 31 ▼
Egypt 37 29.2 36 ▼
Nigeria 38 23.1 - -
Argentina 39 22.9 26 ▼
Greece 40 10.0 38 ▼
Country Rank Index score
Netherlands 21 56.5
Australia 22 53.4
Brazil 23 52.9
Finland 24 49.7
South Africa 25 49.3
France 26 49.1
Spain 27 48.4
Romania 28 45.9
Belgium 29 45.8
Italy 30 45.0
Ireland 31 43.7
Russia 32 43.6
United Arab Emirates 33 42.6
Colombia 34 40.9
Portugal 35 40.1
Saudi Arabia 36 36.1
Egypt 37 28.3
Nigeria 38 25.4
Argentina 39 24.6
Greece 40 10.0
Current Competitiveness Index Competitiveness Index in Five Years
4 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
Brazil’s Decline Adding To BRIC Breakdown… The long-awaited promise of the BRIC countries as emerging manufacturing
goliaths continues to unravel in the face of sharp declines in competitiveness
• Brazil joins Russia in a steep
decline in the global
competitiveness ranking as
economic and socio-political
instability takes its toll
• Brazil and India lag advanced
global economies on talent,
innovation policy & infrastructure,
legal/regulatory environment, and
physical infrastructure
• However, some hope remains for
India to rejoin China in the top five
manufacturing nations in the next
five years, salvaging half of the
original BRIC potential
2 4
11
5
8
29
20
28
32
2010 2013 2016
Co
un
try R
an
kin
gs
India
Brazil
Russia
5 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
…And Search Begins For A New Low-Cost Center As China begins to pivot toward a higher value manufacturing paradigm to align
with other innovation-oriented markets, where’s the “New China”?
• Rapidly rising wages in
China present
opportunities for other
emerging nations to be
competitive on cost of
labor and materials
• India, Malaysia, Vietnam,
and Indonesia are
emerging as alternate low-
cost destinations
• This presents significant
opportunities and
challenges for companies
currently operating in
China that depend on a
lower cost base
Country India Vietnam Malaysia Indonesia
Future Rank 5 12 13 15
Current Rank 11 18 17 19
2013 Rank 4 18 13 17
6 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
While Two Regional Pillars of Strength Emerge… North America and Asia-Pacific countries establishing dominant positions as
regional manufacturing centers…
• All three North American nations
are in the top ten current and future
rankings for manufacturing
competitiveness
• Six countries in the Asia-Pacific
region feature in the top ten for
current or future competitiveness
• Both China and India currently
provide a cost competitive
manufacturing advantage, but
are also leading in number of
STEM graduates going forward
• South Korea and Japan also
excel in developing critical talent
indicators such as concentration
of researchers and patents
China Japan
Singapore
South Korea
India Taiwan
Canada Mexico United States
North America
Asia-Pacific
7 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
Putting The Squeeze On European Countries Most European nations expected to slip in the overall competitiveness rankings in
the next five years
• Germany and the UK are the only
European nations forecast to
remain in the top ten global
manufacturing markets going
forward
• In fact, only two European
countries (Czech Republic and
Romania) are expected to show
any improvement in their relative
rank position over the next five
years, leaving most of the region
vulnerable to global competitive
pressures
European Country Current Rank Future Rank
Germany 3 3
United Kingdom 6 8
Switzerland 12 19
Sweden 13 18
Poland 15 16
Turkey 16 17
Netherlands 20 21
France 22 26
Czech Republic 23 20
Finland 24 24
Spain 25 27
Belgium 26 29
Italy 28 30
Ireland 31 31
Romania 33 28
Portugal 35 35
Greece 40 40
8 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
Meanwhile, It’s “Back To The Future” At The Top Traditional manufacturing powerhouses of the 1980’s are back atop the global
rankings by focusing on core competitiveness attributes, including talent
• Shift to higher value, advanced
manufacturing forms a new
battleground for global
competitiveness going forward
• US is leading the way having
surpassed Germany and closed the
gap to China over the last five years
• A resurgence from the UK results in a
top ten position going into the next five
years
• Executives ranked US, Germany, &
Japan highly competitive in Talent,
Innovation, Legal/Regulatory
Environment, and Physical
Infrastructure – key drivers of global
manufacturing competitiveness
2016 2013 2010 Future
#1
#4
#6
#8
#17
#1 #1
#2 #3
#10
#15
#3
#4
#6
#1
#2
#3
#4
#8
#2
9 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
For the 2016 Index, Global CEOs point to talent (again), cost competitiveness, and
workforce productivity as the top three drivers of manufacturing competitiveness
What Drives Manufacturing Competitiveness?
Global Manufacturing
Competitiveness
Talent 1
Cost
Competitiveness
2
Workforce
Productivity
3
Supplier
Network
4
Legal & Regulatory
System
5
Educational
Infrastructure
6
Physical
Infrastructure
7
Economic,
Trade, Financial
& Tax System
8
Innovation Policy &
Infrastructure
9
Energy Policy 10
Local Market
Attractiveness
11
Healthcare
System
12
Market
Forces
Government
Forces
10 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
Consistently identified as the top driver of manufacturing competitiveness, talent is
a significant pain point, specifically for advanced technology companies
Focus On Talent Is Critical Going Forward
• US retains a leadership position in
research, technology and innovation
having created a strong foundation over
the last century that includes an
educational system that fosters creative
thinking, superior talent, and world-class
universities
• …but, the R&D competitiveness gap is
narrowing rapidly as countries like China
have been aggressive in attracting and
nurturing STEM (Science, Technology,
Engineering, and Math) talent
• …resulting in a significant challenge in
the form of a talent shortage and
widening skills gap over the next decade
The aging of engineering and manufacturing workforces, without appropriate knowledge transfer, is exacerbating a skills shortage not only in the US but also in other developed and developing nations
- Executive Interviewee
11 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
A host of issues face US manufacturing companies looking to spur growth through
innovation going forward, the question is how to capitalize while avoiding pitfalls
Challenges, Sure … But, Also Opportunities
• Challenges faced by US
companies include:
• a significant talent shortage
and widening skills gap
• uneven and weak foreign
market conditions and
business environments
• coping with weak Intellectual
Property (IP) laws and
behavior globally
• the high cost and complexity
of compliance in an uncertain
US regulatory environment
• Long-term global trends that will help
provide opportunities for US companies to
spur growth and innovation, include:
• an expanding middle class and rapid
urbanization across Asia
• continued and plentiful low cost energy in
North America
• attractive demographics across North
America
• increased global demand for commercial
aircraft
• the rapid technological advances in the
auto industry (e.g., autonomous vehicles)
• increased output in the US chemicals
and industrial machinery sectors
Challenges Opportunities
12 Deloitte and US Council on Competitiveness I 2016 Global Manufacturing Competitiveness Index Copyright © 2015 Deloitte Development LLC. All rights reserved.
In order to grow and succeed in the highly competitive global innovation space,
companies can follow some overarching themes for strategy development
Industry Innovation Playbook
1. Think like a venture capitalist and
take best practices from successful
start-ups
2. Take a portfolio approach to
innovation projects and investments
3. Adopt a risk-tolerant mentality to
allow some of the higher risk, higher
reward efforts to proceed
4. Operate outside of traditional
walls to take advantage of
collaboration opportunities
5. Understand there is no singular
solution or path to achieve
innovation success
6. Have a strategic focus regarding
resource allocation, alignment and
activities as well as incentives
7. Be explicit about innovation
ambitions and goals and
organize accordingly
8. Perseverance pays: Fear of
failure or failure to bounce back
when met with failure will relegate
an organization to a role as
followers
9. Look beyond product
innovation to transform other
elements of your business system.
10. Diagnose your capabilities and
be realistic about them; address
as required
About this presentation This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 225,000 professionals are committed to making an impact that matters. Deloitte serves 4 out of 5 Fortune Global 500® companies. About the U.S. Council on Competitiveness The Council on Competitiveness is the only group of corporate CEOs, university presidents, labor leaders and directors of national laboratories committed to the future prosperity of all Americans and enhanced U.S. competitiveness in the global economy through the creation of high-value economic activity in the United States. The Council is a non-partisan and non-governmental organization. Learn more about the Council here or view the full list of publications here. Check out the Council on Competiveness' Facebook page for further updates or follow @competenow on Twitter. © 2015. For information, contact Deloitte Touche Tohmatsu Limited.
Recommended