Malaysia tops global manufacturing index, Australia 28th
Malaysia, Taiwan and China are the top three world manufacturing destinations in 2015, according to Cushman & Wakefield’s 2015 ‘Where in the World? Manufacturing Index’.
Australia ranks 28th on the list of 30, above Italy and Belgium.
According to Richard Middleton, Cushman & Wakefield head of occupier services, EMEA and Asia Pacific, the report reveals how the APAC region is benefitting from a lower cost business environment which is proving attractive to manufacturers.
“The markets of Asia Pacific continue to remain particularly attractive to manufacturers and this shows in our latest index rankings. Malaysia has retained top place in our main index for the second year running and Vietnam tops our growth index and is maturing as a manufacturing destination," Mr Middleton said.
“From a broader perspective, there remains some volatility at play. While China remains the world leader in terms of manufacturing output and benefits from the scale of its immediate marketplace, rising labour costs have caused a shift in strategy for some manufacturers. This has not only benefitted the APAC regions of Malaysia and Vietnam but has also added to a re-shoring trend with a number of manufacturers moving their plant and facilities back to Western markets.
"This has strengthened the prospects of certain European locations, notably Turkey which has positioned itself at the crossroads of Europe, Asia, Russia and Africa.”
Mark Wanic, Cushman & Wakefield’s head of occupier services America's, said there is a genuine sense that manufacturing is now making a comeback in the US as global demand appears to have turned a corner. The cost differential to cheaper markets, which contributed to a number of manufacturers moving ‘off-shore’, has now narrowed –with the US regaining a competitive edge.
“A more competitive energy platform, both in terms of cost and security, is adding to the US as a manufacturing location. In addition, supply-chain management is also collectively adding to the more positive outlook evident from our latest index ranking," Mr Wanic said.
