US Poised to Become the Global Manufacturing Leader
According to a 2016 Global Manufacturing Competitiveness Index report from the Deloitte Global Consumer & Industrial Products Industry group and the US Council on Competitiveness, the United States stands to become the most competitive manufacturing nation of the next five years. The prediction comes from interviews with more than 500 CEOs and senior leaders at manufacturing companies worldwide.
“The 2016 Global Manufacturing Competitiveness Index shows the importance of policy, investment and innovation for company and country-level competitiveness,” says Deborah L. Wince-Smith, president and CEO of the Council. “Its findings help companies shape their business strategies in order to compete successfully, and create jobs.
American research and technology help US rise
According to the study, Advanced Technologies Initiative: Manufacturing and Innovation, the ability of the United States to take the top spot may be largely due to its investment in research, technology and innovation. These enhance the competitiveness of the country’s industries and drive economic development.
“Manufacturing competitiveness, increasingly propelled by advanced technologies, is converging the digital and physical worlds, with and beyond the factory to both customers and suppliers, creating a highly responsive, innovative and competitive global manufacturing landscape,” says Craig Giffi, a leader in DeLoitte US Consumer Industrial Products Industry group and co-author of the report.
US and China will maintain lead
China and the US will retain the top two spots for global marketing competitiveness, followed by Germany and Japan. India is expected to jump from 11th place to 5th place. Further down the list, developing markets are maturing and becoming more formidable. Malaysia, Vietnam and Indonesia are all expected to rise in the rankings. Several European nations, including Switzerland, Sweden, Poland and the Netherlands are expected to drop.
“While emerging markets continue to push the leaders, the findings demonstrate the strength of the manufacturing powerhouses of the 20th century with the United States, Germany and Japan holding three of the top four positions currently and in the future,” comments Giffi.
Talent most critical element to growth
The report preview also identified the top drivers of manufacturing competitiveness, which included talent (with access to skilled workers seen as most important), cost of wages and materials and workforce productivity.
“Talent continues to be the most critical element of global manufacturing effectiveness,” says Tim Hanley, Deloitte Global Leader for Consumer & Industrial Products Industry group. “It underscores the changing nature of skills needed as manufacturers increasingly adopt advanced technologies to innovate their future products, services and business models.”
Protomatic keeps competitive edge
Protomatic, a CNC precision machining shop, strives to stay on the cutting edge of competitiveness with a well-trained workforce and philosophy of manufacturing innovation that leads to life-saving precision in the components we manufacture. We are always looking for new ways and new tools to improve the efficiency of our operations and to offer the best solutions to our customers.
About the author: Doug Wetzel is Vice President and General Manager of Protomatic. Protomatic is a CNC precision machining shop specializing in prototype and short-run-production components for the medical, aerospace and other technical industries. Because of the critical nature of the parts they design and manufacture, the emphasis is always on Life-Saving Precision.