Manufacturing is an essential component for many product-focused firms worldwide. This list of the world’s top ten manufacturing countries can help you understand where other companies outsource their production needs. The list shows global industrial production in 2019, according to the most recent data available from the United Nations Statistics Division.
As you analyse this list to see which nations would be the best fit for your company. Global Upside gives a thorough examination of each country, including compliance considerations, taxes, incorporation requirements, human resource considerations, and other government restrictions.
The World’s Top Ten Manufacturing Countries
- China accounts for 28.7%
- The United States accounts for 16.8%
- Japan accounts for 7.5%
- Germany accounts for 5.3%
- India accounts for 3.1%
- South Korea accounts for 3%
- Italy accounts for 2.1%
- France accounts for 1.9%
- The United Kingdom accounts for 1.8%
- Indonesia accounts for 1.6%
The World’s Top Ten Manufacturing Countries
China accounts for 28.7% of global manufacturing output
China, located in East Asia, is one of the world’s oldest civilizations. With 1.4 billion people, it is the world’s most populated country. Because of its low expenses, China has an entrepreneurial economy and is one of the greatest places to do business.
China accounts for 28.7% of total world manufacturing production. In 2019, this accounted for approximately $4 trillion of the country’s total economic output. Although the United States was once the world’s leading manufacturing hub, China has held that position for more than a decade. China has a comfortable 10% lead over the US due to low costs, a vast workforce, and high production quality.
The United States accounts for 16.8% of global manufacturing output
Manufacturing is an important component of the US GDP, accounting for more than $2.3 trillion in 2018. This industry accounted for 11.6% of overall US economic activity while accounting for half of total US exports.
Some corporations have expressed worries about manufacturing in China in light of the recent pandemic. The pandemic, which originated in Wuhan, disrupted supply networks and hindered company production all across the world. This could be an indication that firms would start to spread their manufacturing operations across different countries.
Japan accounts for 7.5% of global manufacturing output
Japan is an East Asian island nation with a population of 126.2 million people located in the northwest Pacific Ocean. Japan has a rich cultural heritage and is well-known for its animation, arts and crafts, cuisine, music, and a variety of other businesses. Consumer electronics, autos, computers, and metals such as iron, steel, copper, and semiconductors are major export sectors in this country.
Japan produced $1 trillion in manufacturing in 2019, making it the third most popular manufacturing country. As corporations continue to develop and seek manufacturing partners, Japan has proven to be dependable as one of the world’s top ten manufacturing countries.
Germany accounts for 5.3% of global manufacturing output
Germany, with a population of 83 million people, has emerged as one of the largest importers and exporters. The German economy fosters free markets in the business and consumer products sectors, which is why it has recently risen to the top ten manufacturing countries.
Germany is the biggest European industrial nation, with $806 billion in revenue in 2019.
India accounts for 3.1% of global manufacturing output
India has developed into a dependable country in several business sectors. With a population of over 1.3 billion people, India has the workforce and resources to quickly enter the list of the top ten manufacturing countries.
Although India is primarily recognised for IT labour support or customer service centres, manufacturing production in 2018 was $412 billion. India’s manufacturing industry can expect to grow more as companies diversify throughout the global expansion.
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In South Korea
6. South Korea accounts for 3% of global manufacturing output
With a concentration on high-tech, service-based economies, South Korea has become one of the world’s fastest developing developed nations.
South Korea’s principal exports include electrical equipment, cars, petroleum liquids, vehicle components and accessories. Petroleum oils, electrical equipment, gas, hydrocarbons, and coal are the most important imports.
Italy has a global manufacturing output of 2.1%.
Although Italy ranks seventh on our ranking of the top ten manufacturing countries, its economy is primarily reliant on the manufacturing and services sectors. Italy, with a population of 60 million people, is widely regarded as one of the world’s most industrialised nations. Their dependable and sophisticated manufacturing industry makes them an ideal site for manufacturing.
Metals and metal products, textiles and footwear, and motor cars are among Italy’s primary exports. In 2018, this industry alone contributed $314 billion to the national GDP.
8. France accounts for 1.9% of global manufacturing output
France, with a population of 67 million people, is one of Europe’s most important agricultural producers and a global leader in the industrial power sector. The French federal government provides free essential services to its residents, such as education, healthcare, and pension programmes. The World Bank has classified France as a high-income and rich country.
France is a global industrial leader in fields such as aircraft, automobiles, railways, luxury products, and cosmetics. France principally exports vehicles, aircraft, food (wine), medicinal products, electronic components, and hydrocarbon components.
The United Kingdom accounts for 1.8% of global manufacturing output
The United Kingdom is a sovereign entity located off the northwest coast of Europe that encompasses England, Scotland, Wales, and Northern Ireland. London, England’s capital city, is a leading worldwide financial centre and one of the world’s greatest business cities. With a population of approximately 66 million people, the United Kingdom is a major worldwide economic hub.
Although manufacture is not their primary focus, it contributed $253 billion to their GDP in 2018.
Indonesia accounts for 1.6% of global manufacturing output
Mineral fuels, mineral oils and distillation products, mineral waxes, bituminous substances, animal or vegetable fats and oils are Indonesia’s principal export goods. Despite being at the bottom of the list of the top ten manufacturing countries in the world, their momentum and expansion could propel them to the top of the list in the next years.
With $207 billion coming from manufacturing, Indonesia may want to continue developing this industry in order to compete with countries such as India and China.
Concerning Global Advantage
Global Upside provides services in more than 170 countries, including staffing, incorporation, PEO/EOR, accounting, HR, payroll, compliance, and M&A. For almost two decades, we have provided integrated growth solutions to public, private, and charitable organisations of all sizes.
Our experienced global teams understand the intricacies of doing business in several countries and assist our clients in successfully navigating the nuances of local laws and regulations. Our outsourcing services help our clients simplify day-to-day operations, giving them more time and resources to focus on their core capabilities. You can order Industrial machinery parts from us.