https://www.engineeringnews.co.za

SA slides down global manufacturing competitiveness ranking

KEY COMPONENT
Manufacturers consider cost, productivity and a good supplier network as vital to remain competitive

KEY COMPONENT Manufacturers consider cost, productivity and a good supplier network as vital to remain competitive

Photo by Bloomberg

26th August 2016

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

Font size: - +

Despite being regarded as the most competitive manufacturing country in Africa, South Africa is losing momentum, compared with other countries, particularly China.

South Africa dropped three places – to twenty-seventh position – on the global ranking of the world’s most competitive countries, according to the Deloitte 2016 Global Manufacturing Competitiveness Index (GMCI) released earlier this month.

The study is conducted every three years and is designed to help global industry executives and policy makers evaluate key drivers of company- and country-level competitiveness. It also identifies the nations expected to offer the most competitive manufacturing environments until 2020.

The top five countries are China, the US, Germany, Japan and South Korea.

Meanwhile, other countries in the Brazil, Russia, India, China and South Africa, or Brics, grouping, also dropped significantly in the rankings in the past few years. Brazil’s position dropped the most, from eighth position in 2013 to twenty-ninth, while Russia slid from twenty- eighth to thirty-third position. Although India dropped from fourth to eleventh in the rankings this year, Deloitte expects that the country will improve its ranking to fifth by 2020.

The GMCI has found that technology-intensive sectors dominate the global manufacturing landscape in the most-advanced economies and offer a strong path to achieve or sustain manufacturing competitiveness. There is also a convergence of the digital and physical with advanced technologies – such as predictive analytics, the Internet of Things, and smart products and factories.

“Globally, we are seeing manufacturing- related activities evolving . . . quickly to match the advances in technology . . . [leading to] countries increasing their focus on developing advanced manufacturing capabilities by investing in high-technology infrastructure and education,” says Deloitte Africa Industrial products and services sector leader Mike Vincent.

However, he suggests that talent is still considered as the top driver for manufacturing competitiveness, of which “a focus on creating differentiated talent acquisition, development and retention strategies . . . as employers of choice, as well as identifying and nurturing new models of collaboration that leverage key sources of talent outside an organisation” will be key.

Further, manufacturers consider cost, productivity and a good supplier network as vital components to remain competitive.

“In an era of sluggish economic growth, containing costs and increasing productivity to boost profits remain critical, alongside building a strong network and ecosystem of suppliers,”says Vincent.

Governments are also becoming aware of the significant benefits that a manufacturing industry provides for national economic prosperity, with many countries improving and reforming unfavourable manufacturing policies, investing in greater economic development and strengthening overall manufacturing infrastructure, he adds.

Similarly, manufacturers understand the role government policy can play in their success, Vincent says.

“While the signs are there, the rest of this decade will see manufacturing-related activities evolve rapidly. Earnings and exports are stimulating economic prosperity, resulting in countries increasing their focus on developing advanced manufacturing capabilities by investing in high-technology infrastructure and education.”

According to the study, countries are also increasingly incentivised to build strong, multi- faceted foundations that foster long-term manufacturing competitiveness to insulate themselves from external forces. This focus has prompted several top-ranked countries to develop policies that encourage investment in the creation of highly integrated manufacturing technology and innovation ecosystems involving national laboratories, supplier networks, universities and private-equity investors.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.098 0.156s - 174pq - 2rq
Subscribe Now