Tag : us manufacturing

manufacturing sector

Where is the highest concentration of manufacturing in the world?

Today, the highest concentration of manufacturing in the world is still in China. Having displaced the United States from the number one spot of world’s largest manufacturing nation back in 2010, China has continued to solidify its dominance as the world leader. As of 2013, according to data published by the United Nations, China accounted for 23.2% of the total world manufacturing sector while U.S. came in second with an 18.1% share. Japan, Germany and Korea rounded up the list of top 5 with 7.8%, 6.3% and 3.1% respectively.

China continues to be one of the most rapidly growing countries in the world. And when it comes to manufacturing, the country is definitely reigning as the supreme world supplier of electronics, automobile spare parts, commercial goods, steel products, communication equipment, and more. It currently has the largest concentration of manufacturing industries in the world, and according to statistics, 6 out of the major 10 export ports in the world are in China.

Here is a breakdown of China’s manufacturing empire, spread out in 5 major metroplexes;

1. Shanghai

Shanghai is not only one of the major financial, economic, trade, manufacturing and shipping cities in China, but also the world. It has rapidly been developing industries over the past 25+ years, which has massively attributed to its overall success. It is responsible for the manufacturing of automobiles, steel products, electronics, communication equipment and devices, petrochemicals and biomedicine.

Shanghai is also connected to the nearby cities of Ningbo and Hangzou by the Hangzou Bay Bridge and an overland high-speed rail. These two brother cities also indulge in heavy manufacturing of commercial and consumer goods daily.

2. Beijing

Beijing, the capital and most populous city in China after Shanghai, is another major hub for manufacturing companies in China. It is home to 52 of the Fortune 500 companies and its industrial sector is mainly dominated by heavy industries which contribute to over 80% of its gross industrial output.

The city’s manufacturing sector is mainly involved with electronics, pharmaceuticals, telecommunication equipment, chemicals, and food & beverages. It is also one of the leaders in information technology and bio-engineering.

3. Tianjin

A sister city to Beijing, Tianjin is another giant manufacturing sector on its own.  It is one of the 4 autonomous municipalities in China; the others being Shanghai, Beijing and Chongqing, that offer immense opportunities and resources to manufacturers hence attracting them here. It is a leader in the manufacture of mobile phones, automobiles, alternative energy products, and aerospace & aviation products.

4. Guangzhou

This another prominent city in China with thousands of factories spread out all over its manufacturing zones. The factories are so diverse in their production that you can get anything from toothpicks to automobile parts here. The city is also popular with traders of African descent, most of who came here in search of low-cost goods but ended up settling down and exporting these goods back home.

5. Shenzhen

Shenzhen is a world-renown electronics manufacturing city. It is the electronics manufacturing hub of China and the world at large. Home to over 12 million people, this city is just the perfect place for you to establish an electronics manufacturing business in China.

And there you have it, the country with the highest concentration of manufacturing in the world together with its major manufacturing metroplexes and their corresponding areas of specialization.

American manufacturing

Why Manufacture Your Products in the USA vs. Overseas?

You’ve got products to be made. But where? Should American manufacturing be done overseas, from inexpensive factory sources? Or in the United States, where your costs might be higher and your profit margins squeezed? This is usually how the choice is presented.

In fact, both time and money factors very often point to American manufacturing having the edge in efficiency.

Maintaining Local Accessibility

Doing business with a U.S. manufacturer means your product can be available quickly, by domestic shipping. You’ll be able to keep in constant contact with the manufacturing company.

You’ll have the option of working with its specialists from start to finish with considerable ease.

For example, you can have quick access to manufacturers’ samples of a product line ahead of a full order.

Indicators for Future U.S. Manufacturing Growth

There might be other factors in a decision to go with a U.S. manufacturer. Much more than a wage-per-hour figure is in play.

Supporting American manufacturing gives you the power to support the future growth of the sector, and its solid role in a strong economy. It is an investment in the future of U.S. workers and job security overall.

Under the Trans-Pacific Partnership, the North American Free Trade Agreement, and other international trade agreements, the United States has suffered a job drain, and the movement of factory trade to foreign locations. At some point, truth be told, US policy changed. It gave up on promoting economic growth from within. It began to rely, and has increasingly relied, on overseas manufacturing.

The public mood may be swaying the Trump Administration to revamp key aspects of international trade. We are optimistic. In our view, there has never been a better time to invest in the future of US manufacturing. Instead of offshoring, the emphasis will be on reshoring.

To that end, President Trump has expressed a commitment to have the US Commerce Department identify trade agreement infractions, by any country, that have harmed US workers. Accordingly, all relevant agencies should use every US and international legal means to end the abuses.

Investing in Communities and Work Environments

Now, let’s return to what we as ordinary people can do to support US industry’s future growth. This involves putting our money where our mouths are—that is, actually relying on American manufacturing for the production of goods. This brings funds into the businesses that can hire local personnel and invest in communities.

Should you commit to working with US-based manufacturing, let your clients know in turn. Be sure they’re aware that part of the cost they’re paying is an investment in the sector.

Tag Team Manufacturing is a US-based company fully dedicated to the economic success of our Denver community. We believe in providing a work environment where machinists are rewarded and retained. We trust our staff to suggest and implement improvements and supply the highest quality parts for our customers.

Call Tag Team Manufacturing today to plan your next manufacturing project: 303.841.5697.