Top Manufacturing Country in The World

Deloitte Global asked CEOs around the world to rank top manufacturing countries in terms of their present and future manufacturing competitiveness. The 2016 Global Manufacturing Competitiveness Index predicted the world's eleven best manufacturing nations would remain stable between now and 2020, with a few trading places on the rankings.

A new study looking at the world's future competitiveness, conducted by Deloitte Global and the US Council on Competitiveness, projects the US to overtake China in 2020 as the world's most competitive manufacturing nation. UN data shows that China is the global manufacturing powerhouse, followed by the United States and Japan. Overall, China, the U.S., and Japan account for 48% of global manufacturing production. In the U.S., manufacturing accounts for 12 percent of national output and 18 percent of global output. In Japan, manufacturing accounts for 19 percent of Japan's domestic production and 10 percent of global production.

China is the leading country by production output in manufacturing, as well as by the share of Chinese national output generated from this industry. China accounts for as much as 28% of the worlds manufacturing output, adding about $4 trillion to the overall value of the world's manufacturing industry.

Together with China and the U.S., the three largest countries make up about 48 percent of the global manufacturing output. These ten countries account for nearly 100% of total world manufacturing and are responsible for producing some of the world's most sought-after goods. Together, these countries represent 60 percent of the global manufacturing GDP, showing how influential these countries are in influencing global production trends.

Switzerland has a high supply of highly educated workers, and the value-added to its economy via its manufacturing sector is among the highest in the world. While Swiss manufacturing costs and the Swiss franc are indeed somewhat risky, Switzerlands has capitalized on their labor advantages, along with a stable political environment, to create manufacturing jobs for Britain. Its robust economic ecosystem has evolved to make the country a more efficient and affordable place to produce products. China's economy is flourishing as a manufacturing powerhouse, and products from the country appear everywhere.

One of the reasons companies make their products in China is the large number of cheap workers the country has to offer. In addition to the low cost of labor in the country, China has been called the world's factory due to a robust entrepreneurial ecosystem, a lack of regulatory obfuscation, lower taxes and tariffs, and competitive currency practices.

India has substantially increased efforts in recent years to attract investment from the manufacturing sector in the country. Prime Minister Narendra Modis Make in India initiative is designed to help the country displace China as the world's manufacturing hub. In this uncertain trading climate, an increasing number of countries are hoping they can displace China as the next big manufacturing hub of the world.

Singapore has seen a drop in manufacturing production due to the U.S.-China trade war - an indication the country may be able to reap greater independence from China. The UK contributed $244 billion to the overall value of the manufacturing industry, with the UK's main exports consisting of chemicals, food, and manufactured goods. While manufacturing contributes around 30% to Taiwan and South Koreas GDP, it makes up only 19% of Singapore.