Continuing their study on the state of manufacturing in the US, as well as from a global perspective. The Boston Consulting Group has put together a great presentation to explain now that manufacturing competitiveness is no longer concentrated in a single region or country.

The research identified four distinct patterns of change in manufacturing competitiveness by cost over the past decade that involve most of the 25 economies studied.

“While labor and energy costs aren’t the only factors that influence corporate decisions on where to locate manufacturing, these striking changes represent a significant shift in the economics of global manufacturing,” said Michael Zinser, a BCG partner who is coleader of the firm’s Manufacturing practice. “These changes should drive companies to rethink their sourcing strategies, as well as where to build future capacity. Many will opt to manufacture in competitive countries closer to where goods are consumed.”

The findings have implications for both companies and governments as they consider their manufacturing options. Several countries that have lost ground since 2004 risk becoming even less cost competitive if current wage and productivity trends continue. In some nations with low direct-manufacturing costs, BCG found that manufacturing competitiveness could be undermined by other factors, such as a difficult business environment or poor logistical infrastructure.

The Shifting Economics of Global Manufacturing from The Boston Consulting Group

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