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The Countries Leading the Way in the Future of Production


The Countries Leading the Way in the Future of Production

The First Industrial Revolution dates back to the 18th century, with the manufacturing and production process evolving significantly to improve efficiency. Since then, the world has gone through a series of changes with the present-day seeing us in full swing of the world’s Fourth Industrial Revolution. 

Using data from the World Economic Forum’s ‘Readiness for the Future of Production’ report, RS Components have taken a look at the countries that are leading the way when it comes to driving production forward. The six main drivers are ‘Technology & Innovation’, ‘Human Capital’, ‘Global Trade & Investment’, ‘Institutional Framework’, ‘Sustainable Resources’, and ‘Demand Environment’. See how each country compares when it comes to being ready to produce more products, technologies, and goods here.

The 21st century is a truly digital age, with technology now intertwined and cemented into both our personal and professional lives. Over the last two decades, in particular, technology has become increasingly advanced and has seen the emergence of the Fourth Industrial Revolution. Complicated and impressive technologies such as artificial intelligence (AI), robotics, the Internet of Things (IoT), 3D printing, genetic engineering, and quantum computing have all emerged and are being used across the globe in a variety of industries, businesses and processes.

As a result of the new technological age, the speed, efficiency, and accuracy of production levels have improved astronomically, with less room for human error as machinery takes over, making production levels much faster and hassle-free.  

With the rise of these advancements, it is important for countries and businesses across all industries to be tapping into these changes to keep up with the future of production. But which countries are leading the way?

RS Components have produced a graphic analyzing data from the World Economic Forum’s Readiness for the Future of Production report, to reveal the countries leading the way when it comes to driving production forward. With each country analyzed by a series of metrics including global trade and investment, institutional framework, sustainable resources, demand environment, and emerging technologies, the top 10 countries leading production levels forward have been scored out of 10.

The top 10 countries driving the future of production include:

The US takes the crown as the leading country in the world driving the future of production forward. Scoring at the top of the leaderboard across all metrics excluding Sustainable Resources and Institutional Framework, the US holds an overall score of 8.16 out of 10. The US is renowned for its innovation and holds an advanced, connected and secure technological platform that allows production to drive forward in the most efficient way possible.

Singapore ranks as the second country driving the future of production and the UK sits at fourth place with a score of 7.84. Singapore sits as one of the world’s leading chemical manufacturing sites, with over 100 global petroleum, petrochemical and specialty chemical companies situated on 12 square miles of land. Singapore today sits as the world’s fifth-largest refinery export hub and amongst the top 10 global chemical hubs by export volume. Involved in these systems includes advancements in manufacturing from robots, to predictive analytics and artificial intelligence. Singapore, like the US, is a key driver in testing, experimenting and trialing the latest technologies. In addition, manufacturing continues to contribute around 20% to Singapore’s GDP.

The importance of having the right technological foundations 

In order for production levels to thrive, it is crucial that technological foundations are cemented in supply chains across the globe. For example, in a warehouse, the speed and availability of the internet is crucial when the Internet of Things is being adopted on the factory floor. In addition, it is also greatly important for businesses and industries to have strong, connected cybersecurity systems to ensure digital security is maintained to a high standard. Having the technological foundations of this, like the US, allows the nation to drive forward technologies to increase production levels.

In addition, in order to ensure these new innovations are implemented effectively, it is crucial that employees have a good understanding of the technology they are interacting with on a daily basis, as the skills required of workers will evolve with the new advancements.

Combined, industries and countries will be able to adapt rapidly emerging technologies into their production lives, which will have a global impact on both businesses and consumers across the world.

US manufacturers will be generating more shipments of export cargo and import cargo in international trade.

INFOGRAPHIC: The Manufacturing Capitals of the World

The manufacturing industries are evolving as new digital technologies transform the landscape. As smart manufacturing and the implementation of the IoT drives manufacturing to new heights, what should we expect to see from manufacturing in years to come? RS Components reveals all with this new interactive graphic.

In the United States, manufacturing generated $2.18 trillion towards their GDP in 2016, driving 11.7 percent of the nations whole economic output. In the United Kingdom, manufacturing contributes £6.7 trillion to the global economy.

In 2018, manufacturing is expected to delve further into hyper-connectedness as the industry implements Industry 4.0 and continues its steady growth into the internet of things (IoT) and artificial intelligence (AI). In the midst of this revolution, AI will become a necessity as the amount of data created by the IoT will be too large for humans to manage and control. Business Insider predicts business spending on IoT solutions will hit $6 trillion by 2021.

As the digital and physical worlds of manufacturing converge, we’re going to see manufacturing heavyweights continue to take centre stage. By 2020, 60 percent of manufacturers will rely on digital platforms which will support as much as 30 percent of their overall revenue. Kamal Ahmed, BBC economics editor, comments that “for the first time since the (British) financial crisis, the three main engines of global growth—the USA, China and Europe—are performing strongly at the same time.”

But, which countries are top performers in manufacturing and will they always be?

RS Components have created an interactive graphic, The Manufacturing Capitals of the World. which reveals who came out on top in 2010, 2016 and who is expected to dominate the sector in 2020.

What will the manufacturing industry will look like in 2020?

The US will be the manufacturing capital of the world by 2020. Rising from fourth position in 2010 to second in 2016, the US is predicted to climb to the top spot by 2020. Asia will also be dominating the manufacturing capitals of the world in 2020. China, Japan and India all make appearances in the 2020 top 5, as they did back in 2010, too.

Germany are also included in the 2020 top 5. Only just making the top 10 list back in 2010, Germany will place 3rd in the world by 2020, with giants USA and China before them. This makes Germany the highest climbing manufacturing capital country out of those in the top 5 ranks.

The UK was the biggest climber in the manufacturing capitals rankings between 2010 and 2016. After recording the fastest growth in their manufacturing sector for three years back in 2017, the UK rise from 17th place in the world in 2010, to 8th in 2020.

The graphic reveals that Brazil falls the furthest down the ranks out of all the countries; in 2010, Brazil ranked as the 5th top manufacturing capital in the world. By 2020, the nation will have fallen a total of 18 spots, taking 23rd place.