The People Bulletin

Access to talented workers capable of supporting innovation is a key driving factor of global competiveness in the manufacturing sector, according to Deloitte’s 2010 Global Manufacturing Competitiveness Index.  The report, based on the responses of more than 400 chief executive officers and senior manufacturing executives worldwide to a survey conducted in late 2009 and early 2010. 

A new group of leaders in the manufacturing competitiveness index is gaining ground and include Mexico, Poland and Thailand; countries not always considered alongside longer-standing, up-and-comers like Brazil and Russia.  And Asian giants like China, India and the Republic of Korea are projected to go on dominating the index over the next five years. 

The old guard – the dominant superpowers of the late 20^th century such as the USA, Japan and Germany are becoming less competitive; a trend set to continue over the next five years.  Other Western European nations are similarly challenged, including the UK and Ireland.

The report makes the point: ‘There is no doubt that the competitiveness of a country’s manufacturing sector is critical to its long-term economic prosperity and growth. A globally competitive manufacturing sector creates a sustainable economic ecosystem, encourages domestic and foreign investment, and improves a country’s balance of payments. It creates good jobs—not just within the sector but spilling over into such areas as financial services, infrastructure development and maintenance, customer support, logistics, information systems, healthcare, education and training, and real estate.’

The failure of the West to keep up with the emerging markets does not bode well; globalisation has made it more possible than ever before to set up production lines in countries that will secure the best competitive advantage and customer offering. As the report puts it: ‘And once business investments are made, with brick and mortar in place, they are difficult to unwind, even as circumstances change… Those governments that fail to understand the barriers that prevent investment may find themselves missing the window of opportunity to create a sustainability-based business-investment climate.’

The respondents made it clear that it was much easier to do business in Asia than it was in the US or Europe because of the attitudes surrounding public policy support for competitiveness.

www.deloitte.com/globalcompetitiveness