Written By: Carissa Gurgul

Within the past few decades, the United States has seen a growth in manufacturing as a result of various factors, such as a stronger economy and tax policies.  In working to create the best environment for the industry, comparing overall policies and regulations (including tax policy), costs associated with energy, health, and transportation, workforce quality, and infrastructure and innovation between nations yields helpful results.  When comparing 19 different countries, the United Kingdom and Switzerland ranked top in regards to overall manufacturing environments, followed by the United States, only lagging by one point in its analysis (77/100).  The reason these countries outranked the others are because of their effective policies, costs, and infrastructure.  Further analysis showed China ranking #1 in manufacturing output with ~$2.01 trillion (27% of their total national output and 20% of the entire world’s output), and Poland having the highest percentage of employees working in the manufacturing industry (20.2%).  In comparison, the United States has the second highest manufacturing output with $1.867 trillion (12% of their total national output and 18% of the entire world’s).  China, the United States, and Japan comprise of 48% of the world’s manufacturing output.  Both Spain and Russia have dropped ranks in overall performance over the past few decades, while places like India and the United States have done just the opposite.

One key in creating a successful manufacturing environment is creating a policy that encourages global trade.  Another beneficial strategy is to implement innovative and financially efficient infrastructure that will aid business development.  To promote innovate work, it is often necessary to provide financial incentives or grants that can assist in the cost of technological innovations.  For example, the United Kingdom provides tax incentives to encourage manufacturing research and development.  Similarly, implementation of modern technology can also develop manufacturing efforts, such as design or delivery of products. This infusion of technology will also lead to more highly skilled employees,which can be particularly beneficial in building smaller businesses.  The article Global manufacturing scorecard: How the US compares to 18 other nations states, “The United States manufacturing sector has benefited from a talented workforce, advanced technology, and pro-business policies.”  In addition, the U.S. has benefited from open trade policies, which is now in danger of being threatened.  Furthemore, manufacturing companies are more likely to use certain countries as a home-base based on their political and economic stability, which may be another current hindrance of the United States.  Lastly, the construction of proper infrastructure may help products get to and from their final destinations in a more efficient manner, especially when trying to improve global efforts.

Through SCPa Works, you have the opportunity to become involved in a manufacturing setting where you may be able to implement some of these suggestions in an effort to improve business. There are many manufacturing jobs currently available, so take advantage of our services to help you land a job, whether it’s in this sector or not!

Source:

West, Darrell M., and Christian Lansang. “Global Manufacturing Scorecard: How the US Compares to 18 Other Nations.” Brookings, Brookings, 10 July 2018.