You are here:

China and US perform strongly in „Manufacturing Risk Index”

Global real estate services firm Cushman & Wakefield has today published new research assessing 48 of the most suitable locations for global manufacturers to expand or relocate their operations in EMEA, the Americas and Asia-Pacific. While manufacturers’ individual requirements will vary, China performs strongly thanks to increasing Government investment in the adoption of technology, while the United States is most attractive for those seeking to minimise exposure to economic and political threats.

Cushman & Wakefield’s Manufacturing Risk Index (MRI) scores each country against 20 variables that make up three final weighted rankings which cover conditions, cost and risk. The data underpinning the MRI comes from a variety of reliable sources, including the World Bank, UNCTAD and Oxford Economics.

The report reveals that China is the leading country when viewed from a baseline scenario which gives equal importance to a country’s operating conditions and cost competitiveness. The United States is in second followed by Taiwan, India and Canada making the top five. The Czech Republic is the highest ranked European country in sixth with Poland, Lithuania and Hungary also featuring highly.

When the data is looked at from a cost scenario - which gives a higher score to countries where operating outlay, including labour costs, is lower - China remains on top with Asian countries dominating the top 10. Only Lithuania and Romania, in eighth and ninth respectively, feature prominently from elsewhere.

The third ranking - the ‘risk’ scenario - takes into account rising geopolitical risk by favouring countries with lower levels of economic and political threat. In this scenario, North America leads the way with the US and Canada first and second respectively and China slipping to fifth. European locations account for half the top 10, led by the Czech Republic, which places fourth in the index, with Germany, Denmark, Finland and Austria also featuring in the top 10.

 

We are seeing an element of protectionism and nationalism putting global and regional and supply chains at risk. In Europe, the outcome of the ongoing Brexit negotiations will redefine regional production lines as well as reshape domestic and international flow of goods.“Countries which invest in platforms that facilitate flows in and out of production lines will succeed. China’s seamless supply chain connections have resulted in substantial investment in infrastructure and multi-modal transport, including the New Silk Road rail and maritime projects, in addition to incentives. These factors are off-setting concerns regarding intellectual property” - said Rob Hall, Cushman & Wakefield’s Chair of EMEA Logistics & Industrial.

Średnia ocena

Related content

Komentarze

Log in to post comment.

In our website we use cookies. Learn more here. ×