Beyond Cost 2024

1 Macro-dynamic shifts since the financial crisis of the early 2000s have highlighted four distinct archetypes for country-level approaches facilitating the growth of the manufacturing sector (see Figure 1). These archetypes are based on two dimensions: the contribution of the manufacturing sector to gross domestic product (GDP), and the level of GDP per capita. 1.1 Mapping manufacturing’s role in economic growth: four country archetypesCountry archetypes and macro-dynamic trends Macro-dynamic shifts and rising emphasis on resilience and sustainability have resulted in a fluctuation in foreign investment across countries. Country archetypes FIGURE 1 0 5 10 15 20 25 30 350102030405060708090100110 Australia BangladeshBrazilCanada Chile ChinaDenmark EstoniaFranceGermany Hung ary IndiaItalyNew Zealand PhilippinesIreland PolandRomaniaJapan IndonesiaSouth KoreaSingapore South AfricaMalay siaSpainSwitzerland Saudi Arabia TurkeyFinlandUnited Arab Emirates MexicoUnited KingdomUnited States Thailand GDP4GDP per capita2 ($, thousands) Manufacturing contribution to GDP3 (% of GDP)Country archetypes1Converger Limited contribution of the manufacturing sector to GDP , and a GDP per capita level that sits above the global averageScaler Strong contribution of the manufacturing sector to GDP , together with a GDP per capita level above the global average Adapter Limited contribution of the manufacturing sector to GDP , and a GDP per capita level that sits below the global averageConnector Strong contribution of the manufacturing sector to GDP , together with a GDP per capita level below the global average Notes: Non-exhaustive. 1. Data sourced from the World Bank. Latest data point available was taken for each country. No data point is older than 2022. 2. Y axis partition drawn at the global GDP per capita ($12,688). 3. X axis partition drawn at the average manufacturing value added of countries within cohort (16%). 4. Circle size indicates total GDP . Source: World Bank; World Economic Forum; Kearney. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 6