Global Growth in Manufacturing and Trade Requires Investment by Emerging Nations

The challenge for mature nations is to remain innovative and competitive, using their strong bases of higher education and advanced technologies to create products and services that the developing world will want to purchase in large quantities. Many leading U.S. and European manufacturers, such as GE and Siemens, already have strong efforts in this regard.

Although they will certainly evolve and adapt, India, Indonesia, the Philippines and similar offshore work centers will remain moderate-cost, highly competitive providers of services and manufacturing for the near future. Nonetheless, local costs in these countries (especially wages) are rising—eventually, they will rise substantially. At the same time, as their economies grow, their business structures and middle classes will grow as well, and they will offer lucrative markets for exported intellectual property, technologies, certain manufactured goods and high-level services created in the U.S., Europe, Japan and elsewhere. In particular, these emerging nations can be spectacular markets for major brands of consumer goods. While the brands (Gillette, Apple, Starbucks, Nestle, Kleenex, etc.) will be American or European, much of the manufacturing may be done in local markets such as Guangzhou, Mumbai, Jakarta and Manila.

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Global Growth in Manufacturing and Trade Requires Investment by Emerging Nations, Business and Industry Trends Analysis

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