{"id":624,"date":"2018-02-28T17:18:49","date_gmt":"2018-02-28T17:18:49","guid":{"rendered":"http:\/\/ceo.com.pl\/en\/?p=624"},"modified":"2018-02-28T17:18:49","modified_gmt":"2018-02-28T17:18:49","slug":"china-regains-top-position-worlds-attractive-location-manufacturing-15202","status":"publish","type":"post","link":"https:\/\/ceo.com.pl\/en\/china-regains-top-position-worlds-attractive-location-manufacturing-15202\/","title":{"rendered":"China Regains Top Position as World\u2019s Most Attractive Location for Manufacturing"},"content":{"rendered":"<ul>\n<li><em>EMEA accounts for 5 of the top 10 global manufacturing locations in Cushman &amp; Wakefield\u2019s ranking \u2013 and 8 of the top 10 advanced production locations<\/em><\/li>\n<li><em>However, rising labour costs mean labour-intensive companies are looking to locate outside of traditional Western and Central European sites<\/em><\/li>\n<li><em>UK placed 31<sup>st<\/sup>\u00a0in overall list \u2013 but third in advanced production ranking, which looks at high-tech manufacturing<\/em><\/li>\n<\/ul>\n<p><strong>China has reclaimed top spot in real estate services firm Cushman &amp; Wakefield\u2019s global ranking of the most attractive markets for manufacturing, confirming its status as the sector\u2019s powerhouse. Last year\u2019s number one ranked country, Malaysia, falls to third place behind Lithuania.<\/strong><\/p>\n<p>Cushman &amp; Wakefield\u2019s\u00a0<strong><em>Manufacturing Risk Index<\/em><\/strong>\u00a0report ranks countries based on a range of risk and cost<\/p>\n<p>factors, including political and economic risk, market conditions and labour costs, to provide a comprehensive assessment of the attractiveness of 42 countries worldwide.<\/p>\n<p>China was ranked first in the baseline index due to its efficient supply chains and infrastructure networks that continue to provide a reliable export platform, despite cost-sensitive production increasingly moving to lower cost countries in the Asia Pacific region. Malaysia fell to third position as it shifts from being a low-cost location to a high-value manufacturing hub, but the country remains extremely attractive and has largest pool of skilled workers in the region.<\/p>\n<p>Lithuania is ranked as the world\u2019s second-most attractive destination for manufacturers, a result of having the lowest European labour costs in the CEE (Central &amp; Eastern Europe) region, standing at 14% below Poland and 30% below the Czech Republic. Another factor in its success is that it is considered the second-easiest country in which to do business within the CEE region.<\/p>\n<p>The UK, placed 31<sup>st<\/sup>\u00a0in the 2018 rankings, has benefitted from the devaluation of sterling since the Brexit vote which has boosted demand for UK goods abroad. The UK is ahead of The Netherlands (34<sup>th<\/sup>), Germany (38<sup>th<\/sup>) and France (39<sup>th<\/sup>) in the global table. However, depending on the outcome of Brexit negotiations, the UK\u2019s attractiveness as a location to serve the rest of Europe could be at risk as a hard border with the rest of Europe would increase the cost of goods and disrupt pan-European supply chains. In terms of Advanced Production rankings, when only high-tech manufacturing is considered, the UK is ranked 3<sup>rd<\/sup>\u00a0behind the USA (1<sup>st<\/sup>) and Singapore (2<sup>nd<\/sup>), with Western Europe dominating the rest of the top 10.<\/p>\n<p><strong>Robert Hall, Cushman &amp; Wakefield\u2019s Chair of Industrial &amp; Logistics, EMEA<\/strong>, said: \u201cLocation and supply chains continue to be the key concerns for the manufacturing sector. Central and Eastern European countries remain highly attractive and globally competitive, as overall labour costs in the region are relatively low and infrastructure investment increases connectivity with the rest of Europe. With Brexit looming and border controls potentially tightening between EU member states, the emphasis remains not only on the free flow of goods, but also the free movement of workers to relieve critical labour shortages across Europe.\u201d<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ceo.com.pl\/en\/china-regains-top-position-worlds-attractive-location-manufacturing-15202\/#EMEA\" >EMEA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ceo.com.pl\/en\/china-regains-top-position-worlds-attractive-location-manufacturing-15202\/#Asia_Pacific\" >Asia Pacific<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ceo.com.pl\/en\/china-regains-top-position-worlds-attractive-location-manufacturing-15202\/#Americas\" >Americas<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"EMEA\"><\/span>EMEA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The region accounts for five of the top 10 markets. In Central Europe, close proximity to Western European economies and improved infrastructure in the form of new motorways have significantly boosted the appeal of Hungary (ranked 7<sup>th<\/sup>), Czech Republic (8<sup>th<\/sup>) and Slovakia (9<sup>th<\/sup>). Whilst labour costs have increased in recent years, they are still below those further west.<\/p>\n<p>These wage hikes, as well as growing labour shortages, have in turn increased the attractiveness of locations further east, including Lithuania (2<sup>nd<\/sup>), Turkey (10<sup>th<\/sup>), Romania (16<sup>th<\/sup>) and Bulgaria (19<sup>th<\/sup>). As well as the lowest labour costs, Lithuania was only beaten by Estonia for ease of doing business. In emerging manufacturing locations Turkey, Romania and Bulgaria comparatively weaker infrastructure and geopolitical uncertainty continue to act as a deterrent from manufacturers locating their plants. Poland took 17<sup>th<\/sup>\u00a0position.<\/p>\n<figure id=\"attachment_625\" aria-describedby=\"caption-attachment-625\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-625\" src=\"http:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-200x300.jpg\" alt=\"Joanna Sinkiewicz, Partner, Head of Industrial and Logistics Agency, Cushman &amp; Wakefield Poland\" width=\"200\" height=\"300\" title=\"\" srcset=\"https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-200x300.jpg 200w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-768x1152.jpg 768w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-683x1024.jpg 683w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-696x1044.jpg 696w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-1068x1602.jpg 1068w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-280x420.jpg 280w, https:\/\/ceo.com.pl\/en\/wp-content\/uploads\/2018\/02\/joanna_sinkiewicz-1920x2880.jpg 1920w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><figcaption id=\"caption-attachment-625\" class=\"wp-caption-text\">Joanna Sinkiewicz, Partner, Head of Industrial and Logistics Agency, Cushman &amp; Wakefield Poland<\/figcaption><\/figure>\n<p><strong>Joanna Sinkiewicz, Partner, Head of Industrial and Logistics Agency, Cushman &amp; Wakefield Poland<\/strong>, said: \u201cYear 2017 has turned out to be the best in the history of modern warehouse space market in Poland. New supply doubled previous year level reaching 2.36 million sq m which means total warehouse stock increased by 20% on annual basis and exceeded 13,5 mln sq m. On the fifth consecutive year demand for logistic space reached a record level, with last year transaction volume exceeding 4 million sq m.\u00a0 Healthy GDP growth of 3.8% as well as further infrastructure investments and the global trend of e-commerce expansion are expected to be the key factors underpinning further warehouse market\u2019s growth in 2018. New projects will appear not only in the key markets such as Warsaw, Upper Silesia or Central Poland but also in the middle size cities with greater labour market availability.\u201d<\/p>\n<p>France, Italy, and Spain registered the fastest year-on-year growth in industrial production in the Eurozone in 2017 and are ranked 39<sup>th<\/sup>, 38<sup>th<\/sup>\u00a0and 30<sup>th<\/sup>\u00a0respectively. A combination of decreasing wages, more flexible labour laws, and highly skilled labour force has contributed to robust growth in manufacturing output since late 2016 in these countries.<\/p>\n<p><strong>Report author Lisa Graham, EMEA Head of Logistics &amp; Industrial Research &amp; Insight at Cushman &amp; Wakefield<\/strong>, said: \u201cFollowing recent fiscal crises and austerity packages in countries across southern Europe, some economies are now seeing a rise in industrial growth and attracting new business in a highly competitive market. \u00a0Spain\u2019s automotive industry is the second largest in Europe, accounting for 20% of their total exports and is playing a key role in the country\u2019s manufacturing rebound. There are currently over one thousand specialised auto suppliers in Spain, placing them 6th globally in terms of turnover, and 17 automotive production plants. Ford Motors\u2019 new plant in Valencia is the company\u2019s largest in Europe, demonstrating strong confidence in Spain\u2019s labour reforms and support for its manufacturing sector.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asia_Pacific\"><\/span>Asia Pacific<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>China (1<sup>st<\/sup>), Malaysia (2<sup>nd<\/sup>) and Taiwan (4<sup>th<\/sup>) account for three of the top four spots in the global rankings. Taiwan has gained a reputation for electronics components manufacturing with Foreign Direct Investment (FDI) in this sector reaching a six-year high in 2016, highlighting its continued appeal. The government\u2019s investment policy also supports the machinery, biotechnology, pharmaceuticals, \u2018green\u2019 innovation, and national defence sectors. Other countries to feature in the top 20 include the Philippines (12th), Thailand (15th), Singapore (18<sup>th<\/sup>) and Indonesia (20th).<\/p>\n<p>Manufacturing is key to the ongoing growth of the region, with GDP per capita in Asia forecast to increase by nearly 25% in the next five years, with China (currently world\u2019s second-highest GDP) and India (currently sixth-highest GDP) expected to see growth rates in the region of 30%. By 2020, manufacturing\u2019s share of GDP will exceed 20% in the top 60 largest global economies. In China, manufacturing will still account for a massive 30% of GDP in 2025.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Americas\"><\/span>Americas<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Canada (5th) and the U.S. (6th) are among the top 10 in the rankings. A sound business environment, high-quality infrastructure, and availability of skilled labour contribute to their attractiveness as manufacturing locations.<\/p>\n<p>The recent announcements from Toyota\/Mazda and Samsung to make additional investments in new plants in the U.S. are fuelling hopes of reshoring. Following a similar announcement made by rival LG, Samsung recently made public its plan to invest $300 million in the construction of a new appliance manufacturing factory in South Carolina.<\/p>\n<p>However, President Trump\u2019s aversion to NAFTA treaty has cast a level uncertainty on the future shape of the North American supply chains. While currently unlikely, a withdrawal of the U.S. would penalise Mexico and Canada as manufacturing bases.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EMEA accounts for 5 of the top 10 global manufacturing locations in Cushman &amp; Wakefield\u2019s ranking \u2013 and 8 of the top 10 advanced production locations However, rising labour costs mean labour-intensive companies are looking to locate outside of traditional Western and Central European sites UK placed 31st\u00a0in overall list \u2013 but third in advanced [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":625,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[16,8],"tags":[160,360,151,62,2772,2721,146,2926,63,2793,213,222,148,37,2958,64,2732,159,65,2929,66,2932,2727,82,130],"class_list":["post-624","post","type-post","status-publish","format-standard","has-post-thumbnail","category-industries","category-real-estate","tag-brexit","tag-canada","tag-cushman-wakefield","tag-czech-republic","tag-e-commerce","tag-emea","tag-estonia","tag-ford","tag-hungary","tag-insight","tag-joanna-sinkiewicz","tag-lisa-graham","tag-lithuania","tag-machinery","tag-mazda","tag-poland","tag-ranking","tag-robert-hall","tag-romania","tag-samsung","tag-slovakia","tag-toyota","tag-usa","tag-warsaw","tag-western-europe"],"jetpack_publicize_connections":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/comments?post=624"}],"version-history":[{"count":0,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/posts\/624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media\/625"}],"wp:attachment":[{"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/media?parent=624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/categories?post=624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ceo.com.pl\/en\/wp-json\/wp\/v2\/tags?post=624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}