Top 10 Manufacturing Countries

The recent U.S. election has industry experts forecasting growth in the manufacturing sector. Where would that leave the U.S. in manufacturing competitiveness compared to other countries? We’ve compiled a ranking of the top 10 manufacturing countries currently based on a GMCI (global manufacturing competitiveness index) as detailed by Deloitte Global and the Council on Competitiveness, as well as how those rankings predict to change in 2020.

1. China
   1. Manufacturing GDP over $1,750B+ which comprises nearly 1/3 of the entire GDP
   2. Labor cost of $3.28/hr, well below average, with exports of over $2,190B
   3. 25% corporate tax rate

*Low GDP/person and disposable income have experts predicting China will drop to #2 by 2020

 

2. U.S.A.
   1. Manufacturing GDP of $1,800B+ which is only around 12% of total GDP
   2. High labor cost of over $37/hr, but exports of over $1,030B+
   3. Highest corporate tax rate at 39.5%

*Labor productivity and high disposable income have caused experts to predict a rise to #1 by 2020 for the United States

 

3. Germany
   6. Manufacturing GDP of $6.6B, or about 1/5 of total GDP
   7. High labor costs of over $40/hr are well above average, but great labor productivity makes up for this, giving them manufacturing exports of $1,240B+
   8. Corporate tax rate is on the higher side at 33%

*Steady manufacturing, exports, cost of labor and disposable income will keep Germany in the #3 position in 2020

 

4. Japan
   1. Manufacturing GDP just over $1,000B, which is just shy of 1/5 of their total GDP
   2. Labor productivity is around average, with exports of just shy of $600B
   3. Corporate tax rate of 33.1%

*Data indicates Japan will remain at #4 in 2020

 

5. South Korea
   1. Manufacturing GDP of roughly $350B, which is around 1/3 of total GDP
   2. Cost of labor and manufacturing exports are higher than average at $20/71/hr and nearly $500B
   3. Corporate tax rate of 24.5%

*Experts predict South Korea will slip slightly to #6 on this list come 2020

 

6. United Kingdom
   1. Manufacturing GDP of $245B, <10% of total GDP
   2. Labor productivity of nearly $78k in GDP/person and almost $350B in manufacturing exports
   3. 20% corporate tax rate

*High labor costs and an exit from the European Union have experts predicting the U.K. will drop to #8 in 2020

 

7. Taiwan
   1. Manufacturing GDP of $178B, almost 1/3 of total GDP
   2. Cheap labor cost of $9.42/hr with average labor productivity of almost $60k in GDP/person
   3. 17% corporate tax rate

*Competition with China and below average GDP data has experts predicting Taiwan will drop to #9 in 2020

 

8. Mexico
   1. Manufacturing GDP is below average at $160B+, around 18% of total GDP
   2. Low labor cost of $6.24/hr and higher than average exports of $309B make up for this number
   3. 30% corporate tax rate

*Experts predict a rise to #7 for Mexico on the 2020 list

 

9. Canada
   1. Manufacturing GDP of $145B is just over 10% of total GDP
   2. Labor cost is high at $30.59/hr, but productivity is above average at $83,000+ in GDP/person
   3. Corporate tax rate of 31%

*Canada is predicted to slide to #10 on the 2020 competitiveness list

 

10. Singapore
    1. Manufacturing GDP of just less than $50B is over 18% of total GDP
    2. Labor cost is higher than average at $24.51/hr, but productivity is very high at over $142,000 in GDP/person
    3. Corporate tax rate of 17%

*Singapore is predicted to fall out of the 2020 #10, sliding to #11

 

Many industry experts agree that shifts to higher value manufacturing and advanced technologies will be key in remaining competitive on a global scale. The line has begun to blur between digital and traditional forms of manufacturing, making it a unique landscape moving forward. What do you think this list will look like in 2020 and beyond? Share your thoughts with us in the comments section below!