OVERVIEW OF MANUFACTURING HOUSES

GLOBALLYPresented By: RAJUL JAIN

According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming. Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the world. Manufacturing provides important material support for national infrastructure and for national defense.

ECONOMICS OF MANUFACTURING

Most manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving efficiency, reducing waste, using industrial symbiosis, and eliminating harmful chemicals. The increased use of technologies such as 3D printing also offer the potential to reduce the environmental impact of producing finished goods through distributed manufacturing.

The above is a list of the world's largest manufacturing companies, ordered by revenue in millions of U.S. dollars according to the Fortune Global 500.

Currently all companies with revenue greater than $25 billion are included.

The manufacturing sector in Asia has traditionally been strongest in the East Asia region - particularly in China, Taiwan, Japan, South Korea and Singapore. The industry varies from manufacturing cheap low value goods such as toys to high-tech value added goods such as computers, CD players, Games consoles, mobile phones and cars. Major Asian manufacturing companies are mostly based in either South Korea or Japan. They include Samsung, Hyundai, LG, and Kia from South Korea, and Sony, Toyota, Toshiba, and Honda from Japan.

ASIA

Top 10 Asian companies by market value. This list of 50, is dominated by China having 15 firms followed by India

having 12. The complete list as published by Forbes Asia can be accessed here.

Europe has a thriving manufacturing sector, with a large part of the world's industrial production taking place in Europe. Most of the continent's industries are concentrated in the 'Blue Banana' (covering Southern England, the Benelux, western Germany, eastern France, Switzerland, and northern Italy). According to Fortune Global 500, 195 of the top 500 companies are headquartered in Europe. The main products in European industry are bicycles, rail, machinery, marine, aerospace equipment, food, chemical and pharmaceutical goods, journalism, software and electronics

EUROPE

15 out of the 20 nations with the highest nominal GDP per capita are in Europe (2005)

Top 10 companies in Europe

North America has developed and its manufacturing sector has grown. In the beginning the European nations were the large manufacturing powers. At the start of the 1950s, the United States with Canada and Mexico showed significant growth in the sectors of services, mining and manufacturing. Canada's per capita GDP (PPP) was estimated at $44,656 and it had the 11th largest GDP (nominal) in 2014.  In 2014, the US had an estimated per capita gross domestic product (PPP) of $54,980.

NORTH AMERICA

Top 10 American companies as ranked by The Motley Fool. See the full list here.

South America relies less on the export of both manufactured goods and natural resources than the world average. Chile contributes about a third of the world copper production. Brazil is the world’s leading producer of niobium and tantalum, and Peru is the largest silver producer and the second-ranked producer of bismuth and copper. The main agricultural products include coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus, beef, bananas and shrimp are also important agricultural products for many countries.

SOUTH AMERICA

Annual percentage growth in real (chain volume) GDP per capita since 1961.

The region’s 500 largest companies boosted revenues by 21.5 percent last year, to $2.2 trillion. That’s more than the total size of Brazil’s $2.1 trillion economy or twice as much as Mexico’s $1 trillion GDP. And it equals the combined economies of Mexico, Argentina, Venezuela, Colombia and Chile. Latin America is home to some

of the world’s largest companies. As emerging markets such as Brazil, Chile, Mexico, etc. continue to account for a larger share of the world’s GDP, companies from these regions grow to take the top spots in global rankings.

Manufacturing in Australia peaked in the 1960s at 25% of the country's gross domestic product, and has since dropped below 10%. In 2000–2001, $3300 million was spent on assistance to the manufacturing industry, with 40% going to the textile, clothing and footwear industry and the passenger motor vehicle industry.  At that time, manufacturing accounted for 48% of exports, and 45% of Australian research and development. The food and beverage manufacturing industry is the largest in Australia.

AUSTRALIA

Annual percentage growth in real (chain volume) GDP per capita since 1961.

Adults employed in the manufacturing industry as a percentage of the adult population in Australia divided geographically by statistical local

area, as of the 2011 census.

Both the African Union and the United Nations have outlined plans in modern years on how Africa can help itself industrialize and develop significant manufacturing sectors with 21st-century technology. This hope in manufacturing and industry is helped by the boom in communications technology and local mining industry. In much of sub-Saharan Africa electronics and vehicles, pharmaceutical and cosmetic products, building materials, textiles, home tools, plastics and so on are manufactured and exported to other west African and African countries. Nigeria is currently the largest manufacturer of cement in Sub-Saharan Africa.  Ogun is considered to be the current Nigeria's industrial hub.

AFRICA

The Top 10 North African firms demonstrates the biggest overall growth of any regional table. The main cause is the partial recovery in the value of Egyptian stock values, so this growth is rather more of a recovery than genuine progress.

The different industry sectors of India witnessed astronomical growth over the last 15 years.

Previously, the Indian economy was of closed type and the government enterprises controlled all Indian market. The post 1990 Government of India economic policy endorsed a complete different economic policy and opened its market for foreign investments. This saw a horde of FII making inroads to Indian markets. As a result of which different industry sectors, especially the manufacturing sector made huge progress, both technologically and economically.

Major industries include textiles, telecommunications, chemicals, pharmaceuticals, biotechnology, food processing, steel, transport equipment, cement, mining, petroleum, machinery, and software

THE INDIAN CONTEXT

 

1)  The Indian manufacturing sector has been witnessing a sluggish growth due to deceleration in investment.

2)  The national manufacturing policy suggests raising the share of manufacturing in GDP to 25% in order to create 100 million jobs in the coming decades.

3)  Additional capacities are being planned to be installed in all the major manufacturing units.

4)  A public procurement policy has been proposed incorporating technology along with common facility centres while the Khadi Mark steps has been launched to promote Micro Small and Medium Enterprises

THE INDIAN MANUFACTURING INDUSTRY

#Make in India‘Come, Make in India!’ PM Modi's aggressive push to revive an ailing manufacturing sector, has found resonance with India Inc. Single-window clearances, minimal procedures & cutting out of any red-tapism. PM Modi sees Make in India as a vital impetus for employment and growth. The main motto of the Government of India is to invite business entities from all over the world to invest in Indian manufacturing industry. For this  GOI is trying to simplify the rules and regulations to invite investment from foreign investors.