Discover which countries' manufacturing sectors are thriving right now, what they're producing, and what the future may hold for them.
1.China
It will likely surprise nobody to find out that China has the largest manufacturing sector in the world. This has been true for years and shows no signs of changing any time soon. China accounts for up to a whopping 28% of all global manufacturing output, adding a total value of around $4 trillion to the world economy. China exports just about everything, but major items include textiles, garments, and electronics.
However, the fact that one country accounts for so much of international trade has caused some issues. Staffing issues in China's manufacturing sector have contributed to the so-called supply chain crisis, which has been affecting the global economy on and off since late 2021. The country has maintained a "Zero Covid" policy to ensure its citizens' safety.
While this is a laudable goal, it has created a slew of issues for China's manufacturers, who have been forced to work with fewer people and even close plants temporarily to accommodate the policy. Furthermore, as China becomes wealthier and transitions to a more service-based economy, we may see more manufacturing shift to other Asian countries, particularly Vietnam, in the coming years.
2.USA
When discussing manufacturing in the US, much of the talk often centers around what Americans don’t manufacture anymore, and how this has hurt local economies. While it’s true that the US doesn’t manufacture as much as it once did, it’s still the second largest manufacturing country in the world, accounting for roughly18% of global manufacturing output. US manufacturing is perhaps most associated with car exporting, but they also make food products, military equipment, and aircraft.
3.Germany
Germany is also famous for its automobile output. “German engineering” has become a byword for high-quality machinery. How has Germany maintained such a strong manufacturing sector at a time when many developed nations have lost manufacturing jobs to cheaper labor in the developing world?
There’s no one answer but a lot of it has to do with specialization. Behind automobiles, machinery (14.2%) and chemical products (10.0%) rank second and third, respectively, in German manufacturing. Many German companies manufacture specific parts that are used in other products, as opposed to making entire, finished consumer goods.
4.Cambodia
While Vietnam has received much attention for its surging manufacturing sector—which has had both positive and negative effects—its neighbor Cambodia has gone under the radar a bit. The relatively small country of 16.5 million offers some of the cheapest manufacturing costs and is much more open for business than it has been historically. While agriculture is still the largest industry, manufacturing there is becoming increasingly big.
These are not the four biggest manufacturing countries in the world, nor are they necessarily the fastest growing. But they all demonstrate a different kind of manufacturing sector. For small and medium-sized enterprises, looking to nations with similar dynamics to these four for their manufacturing needs could be a wise choice. However, where you source your manufactured goods depends on what goods you need.
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