The Global Manufacturing Risk Index assesses the most beneficial locations for global manufacturing among 47 countries in Europe, the Americas, and the Asia Pacific. The Index gets released by Cushman & Wakefield, a global leader in the commercial real estate industry with headquarters in Chicago, United States.
Overview of the Global Manufacturing Risk Index 2021
|Published by||Cushman & Wakefield|
|Top three countries||1. China|
3. the USA
|Ranking based on four key parameters||1. Capacity to restart manufacturing|
2. Business environment
About the Global Manufacturing Risk Index 2021
- Global Manufacturing Risk Index 2021 ranked the most advantageous location for global manufacturing among 47 countries in Europe, the Americas, and the Asia Pacific.
- The rankings in this Index are determined based on four key parameters:
- Bounce Back: Projected ability to restart manufacturing operations as vaccines are rolled out, business begins to return to normal
- Conditions: Business environment, including the availability of talent/labour and access to markets
- Costs: Operating costs, including labour, electricity, and real estate
- Risks: Political, economic, and environment
- The data underpinning the Index comes from reliable and trusted sources, including the World Economic Forum, Moody’s Analytics, and the World Bank.
Key Highlights of the Global Manufacturing Risk Index 2021
China holds the 1st position in the Global Manufacturing Risk Index 2021, followed by India at 2nd position and the USA holding 3rd position.
Supply chain, labour costs, and availability of labour are the three top factors regarding the manufacturing location decision making. However, due to the COVID-19 pandemic, breakdown in production lines and imposed decrease in onsite workforce created havoc in factories across the world, leaving a negative impact on the manufacturing sector.
The improvement in ranking indicates the growing interest of manufacturers in India as a preferred manufacturing hub over other countries, including the US and those in the APAC region.
Factors responsible for the improvement in India’s ranking
- The growing focus of global manufacturers on India can be attributed to India’s operating conditions and cost competitiveness.
- The improvement in the ranking can also be attributed to plant relocations from China to other parts of Asia due to the already established base in the pharma, chemicals, and engineering sectors.
- The report also mentions that one of the main reasons for the increasing interest of manufactures in India is the country’s ability in meeting the outsourcing requirements.