The US-China trade war has prompted companies to reassess their global manufacturing supply chains, and a recent report by McKinsey Global Institute found that a quarter of all manufacturing could be outsourced to new countries by 2021. Other global risks, such as climate change and cyber attacks, are only accelerating the trend. Meanwhile, a growing number of countries hope to become the next major manufacturing hub.
India has emerged as one of the fastest-growing manufacturing hubs in the world, with many companies expanding into the country. In a recent speech, Prime Minister Narendra Modi praised the expansion of ArcelorMittal Nippon Steel India’s Hazira plant, which will create a variety of new jobs. The Hazira Steel Plant’s capacity will increase from nine million to 15 million tonnes of crude steel.
China continues to grow as rapidly as ever. The country dominates the manufacturing market globally, with an output of $4 trillion in 2019. The country has a large workforce and strong production quality, making it an ideal location for manufacturing. Furthermore, it is the world’s largest manufacturer hub and is home to six of the world’s ten largest ports.
The study also looked at the overall manufacturing environment in countries around the world. Twenty different indicators were taken into account to create a 100-point scale. Interestingly, the United Kingdom and Switzerland are the most manufacturing-friendly countries.
The World’s Largest Automobile Manufacturer
There are several companies that produce vehicles, but the largest manufacturer in the world is the Volkswagen Group. The company produces more than one million cars and trucks a year. Its subsidiaries include Volkswagen, Audi, and Bentley. Other large automakers include Toyota, which is the second largest producer in Asia. Toyota produces both commercial vehicles and passenger cars. Other companies include Ford, General Motors, and Renault. Hyundai, a South Korean automaker, produced 92 million vehicles in 2019.
In recent years, China has become the world’s largest manufacturer. Its manufacturing value added grew by 12% in five years. As a result, the country is becoming an increasingly attractive manufacturing destination. China has a low labor cost and a highly developed infrastructure, which make it an attractive place for manufacturing. Moreover, its market is growing rapidly, and more companies are choosing to manufacture in China to serve the Chinese market.
In 1999, the company acquired Chicago-based Allegiance Healthcare. Allegiance Healthcare made surgical gowns, gloves, and other customized medical supplies. In 2015, the company acquired Johnson & Johnson’s Cordis medical division, a manufacturer of endovascular and cardiology equipment. The company is present in more than 170 countries. It overtook Apple as the second-largest smartphone manufacturer in 2018. However, the company is experiencing issues with cybersecurity and security and has been banned from commerce with U.S.-based companies.