World's Top 10 Countries For Cheap Manufacturing, 2019 - CEOWORLD magazine (2024)

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World's Top 10 Countries For Cheap Manufacturing, 2019 - CEOWORLD magazine? ›

China. According to the United States Statistics Division, China tops the list when it comes to manufacturing. The country makes up 28.4% of the total global manufacturing output, which adds a total value of nearly $4 trillion to the world economy.

China. According to the United States Statistics Division, China tops the list when it comes to manufacturing. The country makes up 28.4% of the total global manufacturing output, which adds a total value of nearly $4 trillion to the world economy.

Latest Update: India ranked 2nd in the 2021 Index and has overtaken the United States as the global manufacturing destination. In 2020, India had ranked 3rd and the US ranked 2nd. China retained its first position in the Global Manufacturing Risk Index, 2021.

Historically, labor expenses in China have been lower than those in many Western nations. Foreign companies looking to minimize their production costs have been drawn to this cost advantage.

In addition to its low labor costs, China has become known as "the world's factory" because of its strong business ecosystem, relatively lax commercial regulations, low taxes and duties, and competitive currency practices.

The U.S. is ranked ninth in output per hour among 142 countries using data from the Conference Board. In 2021, Manufacturing total factor productivity was 3.4 % above its 2005 level. In 2021, durable goods was 8.7 % above its 2005 level. In 2021, nondurable goods was 1.2 % below its 2005 level.

China. UN data shows China to be the world's manufacturing powerhouse. Manufacturing is responsible for nearly 30% of the country's economic output.

China has been the world's biggest manufacturing economy for 13 years and is the leading producer of many advanced goods including electric vehicles, wind turbines and smartphones.

India will replace China as the driver of oil demand growth - Economist Intelligence Unit.

What countries have the cheapest labor costs? ›

The lowest-cost countries in the study are now India, Mexico, and Vietnam. While there are even lower-cost areas of the world, the Reshoring Institute focused its study on where most manufacturers are moving to now, after leaving China.

At number one overall, German goods were found to be respected by a large number of respondents. In a country-by-country basis, the nation ranked #1 in 13 other countries and respondents lauded the quality and high security standards of German production.

China leads the world in terms of manufacturing output, with over $2.01 trillion in output (see Table 1). This is followed by the United States ($1.867 trillion), Japan ($1.063 trillion), Germany ($700 billion), and South Korea ($372 billion).

The great bulk of China's exports consists of manufactured goods, of which electrical and electronic machinery and equipment and clothing, textiles, and footwear are by far the most important.

In 2021, Paraguay was the territory in Latin America and the Caribbean with the highest share of value added by the manufacturing industry to the gross domestic product (GDP). Around 20 percent of the total value added to Paraguay's GDP was generated by this sector.

Historically, countries in Asia, such as India, China, Pakistan, Bangladesh, Vietnam, and Cambodia, have been popular choices for t-shirts manufacturing and also hosts famous t shirt manufacturers due to their relatively low labor costs.

Countries with Low Cost Exports

As per the World Bank reports, Southeast Asian, African and island nations top the list that export goods with low cost. The top three countries that are most economical in exporting goods are East Timor, Singapore and Samoa.

The difference in labor costs between onshoring, nearshoring, or offshoring can be substantial. As a result, it is often less expensive to produce a labor-intensive product by reducing or foregoing American manufacturing.