Competitiveness slips in US, Germany and Japan

“They are all showing some signs of slippage in competitiveness over the next five years,” said Crain Giffi, vice chairman of Deloitte, on 23 June at the National Press Club in Washington. “But even with the rise of China, India and [South] Korea, the US, Germany and Japan are still very formidable and very competitive.”

He added: “Clearly what had been the world order in the second half of the late 20th century is giving rise to new manufacturing paradigms. Giffi is the US national industry leader for consumer and industrial products at Deloitte.

Giffi unveiled a report, the 2010 Global Manufacturing Competitiveness Index, which was produced by Deloitte’s parent company, Deloite Touche Tohmatsu, and the Council on Competitiveness and sponsored by the US Department of Commerce.

Five of the top 10 countries in terms of manufacturing competitiveness – and six of the top 12 – are in Asia.

“The global competitive landscape for manufacturing is undergoing a fundamental transformational shift that will reshape the drivers of economic growth, high-value job creation, wealth creation, national prosperity and national security,” said Deborah Wince-Smith, president and CEO of the Council on Competitiveness. “The epicenter for manufacturing continues to shift to emerging markets and Asia, in particular.”

The survey said that in 2015, the top three countries in manufacturing competitiveness would still be China, India and South Korea, but with South Korea’s relative strength declining.

Brazil will replace the US as the fourth most competitive country with the US dropping to fifth and its relative strength declining. Similarly, Mexico will move past Japan into the sixth position with Japan sliding to seventh and declining in relative strength.