Growth has moved up the priority scale to match cost as the most important location criteria for many manufacturing companies. Achieving growth in an increasingly competitive global manufacturing arena requires strategic positioning relative to long term structural trends.
The rapidly evolving economic, political, and technological landscape has rendered plant location decisions more complicated. New cutting edge technology - encapsulated by what is known as "industry 4.0" - provides enormous potential, but doesn't come cheap. Pursuing cost efficiencies at the production level must often be weighed against supply chain efficiencies.
The Manufacturing Risk Index examines a range of risk and cost factors, including political and economic risk, and labour cost. We have updated and adjusted our previous model to provide a more comprehensive assessment of the attractiveness of 42 countries for global manufacturing.
The criteria has been weighted to reflect three main scenarios:
- A balanced (or baseline scenario) giving equal importance to operating conditions and cost.
- A more cost sensitive environment.
- A manufacturer concerned more about local operating conditions that include risk factors.