Countries successfully growing their manufacturing – and what they are doing right
From Brazil to Singapore, here’s how six countries are rethinking manufacturing. From the climate crisis and geopolitical headwinds to next-generation technologies, a series of complex challenges are rewriting the rulebook for global value chains. Against this backdrop, what are manufacturers and supply chain companies doing to ensure their operations are fit for future success? Most successful firms are moving away from making location decisions based on cost alone to a more complex process that considers factors including performance, resilience and sustainability. Countries that want to remain competitive and position themselves as manufacturing hubs must embrace this shift. By adopting innovative policies across key country-level readiness drivers, nations can boost their appeal for foreign investment, potentially increasing GDP and their share of global value chains, the report suggests. Here are some examples of those archetypes and how they are growing their manufacturing. Brazil While Brazil’s GDP per capita and manufacturing’s share of GDP are below average, the country is making efforts to boost manufacturing’s economic role. The service sector now has a larger share of the GDP than the manufacturing sector. Brazil is the world’s leading source of coffee and a major producer of sugar, soy, and beef. It also exports significant amounts of steel, automobiles, and electronics. For decades, Brazil has been actively promoting manufacturing to diversify its production and reduce its reliance on agricultural exports. In early 2024, the country launched a new policy plan to drive this effort – called Nova Indústria Brasil. This policy defined strategic areas for investment to stimulate technological development and increase the competitiveness of the Brazilian industry. Key initiatives under this plan include measures to digitally transform industrial companies and invigorate the country’s semiconductor industry. India Like Brazil, India is in the adapter quadrant of the country archetypes. It also boasts a sizeable service sector, which […]