Manufacturing is the largest business sector in the world which is also one of the most important one directly and indirectly accounting for a great part of all economic activity and all employment worldwide. It processes items and indulges in either creation of new commodities or in value addition by creating finished goods for sale to customers or intermediate goods used in the production process. After the industrial revolution which began in Britain a few centuries ago, the labor intensive textile production was successfully replaced with mechanization and use of fuels. Today manufacturing industry generates employment, technology development and an increase of international investment.
For this reason some jurisdictions utilize manufacturing output and value-added exports in order boost their operations, business performance and sales as well as to face the challenges and opportunities manufacturers see every day while running their businesses.
According to Deloitte 2016 Global Manufacturing Competitiveness Index, world's Top 5 most competitive manufacturing jurisdictions are considered to be China, United States, Germany, Japan and South Korea. These countries create about 60 % of world's manufacturing GDP.
China
Canada and its provinces are competing on a global scale to attract investment that leads to low production costs, low factory workers' wages and globally popular product mandates incorporation. As a result, there are some significant trends in Chinese manufacturing which can easily be highlighted. These trends include creating a globally-competitive, expansive manufacturing business model which helps to grow a competitive manufacturing business environment in China and expand sales in domestic and foreign markets. This fact can encourage business startups to grow, invest and compete with other successful manufacturing companies.
United States
The United States successfully attract investment to many of world's most active industrial sectors such as aerospace , auto assembly pharmaceuticals to name a few. US signed an agreement with Germany on implementing a dual-track vocational program for the advanced manufacturing sector. US business policies are centered mainly technology transfer, sustainability, monetary control as well as science and innovation, providing a competitive advantage for manufacturing businesses (Detroit's automotive sector and high tech in Silicon Valley).
Japan
Japan has a technology-intensive production sector which dominates the global manufacturing landscape in most advanced economies. The country sustains manufacturing competitiveness as there is a close tie, existing between manufacturing competiveness and innovation. Japan has a strong potential to become world's most up-to-date manufacturing jurisdictions. Robot Revolution Realization Council was established in the country in 2014 within the framework of Japan Revitalization Plan, introducing infrastructure and energy resources for next generation vehicles. Japanese companies gather 50 % of the global market for factory robots.
Germany
Germany maintains a relatively high share of manufacturing exports. The country offer long term support in government sponsored science labs and national programs which were created in order to encourage manufacturing innovation for example in such fields as solar and wind power and renewable energy (in 2014 renewable power sources accounted for 28% of the country's electricity generation). While making an energy revolution in manufacturing industry, the country aims to phase out nuclear energy.
South Korea
Being the global market share leader in the manufacturing of Liquid Crystal Display (LCD), smartphones and memory chips, automobiles as well as having fame of world's largest shipbuilder, South Korea actively pursues growth in Free Trade Agreements with more than 50 countries. The country invests heavily in education generating a great amount of researchers each year. It is also known that a support for innovation in manufacturing in South Korea is identified as a strategic priority with investment in venture capital to sponsor high-tech startups.
