How Are Other Countries Doing in Manufacturing?

According to the World Economic Forum, wverall global manufacturing has declined significantly over the decades, dropping from 27 percent of the global gross domestic produce in 1970 to 17 percent in 2014. At the same time, international manufacturing activity remains an important source of employment and income worldwide into the second decade of the 21st century. The growth and decline in the manufacturing sector varies from country to country.

In the United States manufacturing has fallen dramatically over the years as many companies relocate factories to other nations with lower labor costs. This relocation has led to the growth of manufacturing in other countries. China is one of the top global manufacturing nations with healthy growth levels in their manufacturing output even during economic slowdowns. In addition to low labor costs, China offers low material costs, well established supplier networks and government support to make them a first choice for international manufacturing activity.

India, Indonesia and Vietnam are also experiencing healthy growth in the global manufacturing market. All three Asian nations have lower labor costs than nearby China. China's prime advantage over its neighbors is government support and development in the area of technology. This has led to predictions that low-tech industry growth will continue in the other Asian nations.

Germany is another country experiencing manufacturing growth, with manufactured exports increasing three times from 2000 to 2011 according to the Global Manufacturing Competitive Index. Germany's highly trained workforce and commitment to innovation drives its growth in global manufacturing. Outside of Germany, European manufacturing is growing at a slow but steady rate, with Ireland and Italy experiencing growth at a higher rate than other European nations.

In the Western Hemisphere, Canada and Brazil are climbing the ranks in the area of global manufacturing. Canada is well-established as a leader in the automotive, telecommunications and aircraft industries. The Canadian government supports new industry and offers incentives to new manufacturing enterprises. Canada's proximity to the United States reduces transportation costs for exports to the United States. Brazil also offers government support for manufacturing, which include tax breaks and lower energy costs.

The Global Manufacturing Competitive Index predicts manufacturing slowdowns for both South Korea and Japan. Manufacturing in South Korea has been dropping steadily in the 21st century. Although Korea has a low-cost, skilled workforce, increasing government regulations and overall economic decline make the nation less attractive to new industry. In Japan, the government's attempts to attract more manufacturing endeavors are not strong enough to overcome the country's high tax rate, lack of natural resources and aging population.

As worldwide manufacturing levels decline, China continues as the global leader in manufacturing exports, with sources of low-cost labor such as India, Indonesia and Vietnam providing some competition. Germany is the manufacturing leader in Europe, and Canada and Brazil are strong in global manufacturing in the Western Hemisphere.

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