China Ranked Most Competitive Manufacturing Nation in the World

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A view of Shenzhen city in Guangdong province, China.
A view of Shenzhen city in Guangdong province, China. The southern city of Shenzhen has emerged as the top destination for manufacturing in China. Photo-yuan2003/Flickr
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A view of Shenzhen city in Guangdong province, China.
A view of Shenzhen city in Guangdong province, China. The southern city of Shenzhen has emerged as the top destination for manufacturing in China. Photo-yuan2003/Flickr

Over the next five years, 20th-century manufacturing stalwarts like the United States, Germany and Japan will be challenged to maintain their competitive edge to emerging nations such as China, India and Brazil, according to the 2013 Global Manufacturing Competitiveness Index report from Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group and the U.S. Council on Competitiveness.

The report confirms that the landscape for competitive manufacturing is in the midst of a massive power shift – based on an in-depth analysis of survey responses from more than 550 chief executive officers (CEOs) and senior leaders at manufacturing companies around the world.

2013 Global Manufacturing Competitiveness Index
2013 Global Manufacturing Competitiveness Index. Source-Deloitte

The 2013 Global Manufacturing Competitiveness Index once again ranks China as the most competitive manufacturing nation in the world both today, and five years from now. Germany and the United States round out the top three competitive manufacturing nations, but, according to the survey, both fall five years from now, with Germany ranking fourth and the United States ranking fifth, only slightly ahead of the Republic of Korea. The two other developed nations currently in the top 10 are also expected to be less competitive in five years: Canada slides from seventh to eighth place and Japan drops out of the top 10 entirely, falling to 12th place.

2013 Global Manufacturing Competitiveness Index Country movement
2013 Global Manufacturing Competitiveness Index Country movement. Source-Deloitte

The report found that access to talented workers is the top indicator of a country’s competitiveness – followed by a country’s trade, financial and tax system, and then the cost of labor and materials. Enhancing and growing an effective talent base remains core to competitiveness among the traditional manufacturing leaders – and increasingly among emerging market challengers as well.

Manufacturing still matters a great deal for the economic prosperity of 20th century powerhouses – and these nations continue to have enough going for them to stay in the game and even thrive.

Middle East Manufacturing scenario

In the Middle East, three countries made the list of the most competitive manufacturing countries, including: the United Arab Emirates ranking at 30, Saudi Arabia ranking at 34, and Egypt ranking at 36.

“We are pleased to see Middle Eastern countries on the Global Manufacturing Competitive Index, affirming the region’s forecasted growth as an emerging economy. Saudi Arabia, Egypt and the United Arab Emirates are expected to move up in ranking five years from now,” said Bakr Abulkhair, Chairman and Managing Partner at Deloitte & Touche Bakr Abulkhair & Co., Saudi Arabia.

“The identified key dividers between established and emerging manufacturing markets, in the Deloitte report should provide insights to Middle East countries and manufacturers to assist them in bridging gaps with developed manufacturing markets and building capabilities and economic and political infrastructures to drive growth and job creation in our region,” he added.

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