Manufacturing is an essential aspect of the global economy, and it becomes even more critical as demand increases, which leads to the establishment of more manufacturing plants, thus creating fierce competition in the sector.
According to the World Bank, about 17% of the global GDP comes from manufacturing. As of 2021, manufacturing directly contributed around $16 trillion and trillions more indirectly to the economy. For product-focused businesses, manufacturing is the bedrock of their business.
Knowing where profitable products are produced for maximum profit is essential for businesses that wish to get their priorities right.
To this effect, we have compiled a list of the countries with the top ten manufacturing companies.
China: It is not a hidden fact that most businesses around the world procure from or directly manufacture their product in China, and that is because of the massive manufacturing sector of the Chinese economy. With 28.4% of the global manufacturing output, China sits at the top of the worldwide manufacturing index. Aided by an entrepreneurial economy, low labour costs, a large and skilled workforce, and a suitable infrastructure for manufacturing, China is showing no sign of slowing down her manufacturing processes any time soon. The main exports from China comprise consumer goods like textiles, electronics, and garments.
United States of America: Until 2010, the United States of America was the leading manufacturing economy before China took over the spot. Even though many businesses from the United States procure or manufacture their products from China, the United States of America is still in second place in the global manufacturing industry, with 16.6% of the worldwide manufacturing output. As the years pass, we shall see if they can regain their spot at the top of the global manufacturing index. Popular products produced in the US include but are not limited to automobiles, chemical products, food products, military equipment, and aircraft.
Japan: With a population of 126.2 million, Japan is number three in the global manufacturing index, raking in 7.2% of global manufacturing output. Culturally rich and famous for her animation and arts and crafts production, Japan's major exports include consumer electronics, automobiles, computers, and metals like iron, steel, copper, and semiconductors.
Germany: Germany is number four on the global manufacturing index and the number one European manufacturing nation. Her free market policy in the business and consumer market sector has gone a long way to make her one of the top ten manufacturing countries in recent years. Notable for motor vehicle exports, electrical machinery, and manufactured metals, Germany accounts for 5.8% of the global manufacturing output. Known for its engineering capacity, Germany is home to top manufacturing companies, especially in the automobile industry.
South Korea: With a population of 51.74 million, South Korea accounts for about 3.3% of global manufacturing output. With a focus on a high-tech, service-based economy, South Korea is Asia's number three manufacturing economy after China and Japan. It has become one of the fastest-growing developed nations in the world. Some of the popular products manufactured in South Korea include technological products, automobiles, petroleum, and machinery.
India: India sits comfortably at number six regarding global manufacturing output. Though known for her Medicare, Customer Service, and IT workforce, India controls about 3% of the worldwide manufacturing output, and some of the goods produced in India include Medicare equipment, agricultural products, textiles, engineering goods, leather products, and chemicals.
Italy: With a population of over 59 million people, Italy sits at the seventh spot in the global manufacturing index with 2.3% of the worldwide manufacturing output. Italy is regarded as one of the world's most industrialised economies due to its economic structure, modeled after the production and manufacturing sector encompassing various industries such as automobiles, energy, fashion, and machinery.
France: Home to many Iconic and luxurious brands in the world encompassing fashion and beauty, aviation, automobile, electronics, and agriculture, France sits at number eight in the global manufacturing index with control of 1.9% of the global manufacturing output. France primarily exports vehicles, aircraft, food products (wine), pharmaceutical products, beauty and fashion products, and electronic and hydrocarbon components.
United Kingdom: Home to giant manufacturing companies across various sectors like aerospace, defense, and consumer goods, the United Kingdom sits at number nine in the global manufacturing index and controls about 1.8% of the worldwide manufacturing output.
Mexico: With a 1.5% contribution to the global manufacturing output, Mexico sits at number ten on the global manufacturing index. Mexican exports are mostly mineral fuels, lubricants, food, transport equipment, and machinery.
The global manufacturing sector has faced several challenges in recent years, especially with the outbreak of the Covid-19 pandemic, which changed the global economic spectrum and global uprising from different geopolitical zones which, to a great extent, has disrupted the supply chain landscape, thereby evolving consumer preferences and increasing regulatory scrutiny.
Businesses who know where and how to source for their products have remained afloat and competitive by partnering with experienced partners like SARA PROCUREMENT SERVICES LIMITED.
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