Spain enters the TOP 25 most attractive countries for the manufacturing industry

The ranking is headed by Malaysia, Taiwan, China and the United States

Spain is ranked 25th, just behind France and ahead of Italy and Brazil.

[Img # 22365] El Manufacturing sector is in the midst of a period of major change with profound implications for companies across the global industrial landscape, according to the report “Manufacturing Risk Index"Of Cushman & WakefieldThis is an annual survey of the manufacturing sector, which assesses how political, economic, technological and environmental risks are managed during portfolio assessment and new site selection for occupiers in the 30 largest industrial producing countries.

Spain has improved one position compared to the previous year and has placed itself in the 25th position, one place below France, but ahead of Brazil (26) Australia (29) o Italy (30). Spain has moved up a notch in response to its improved conditions during 2016 in industrial production (+1,9% in annual growth), investment in productive capital (+3,1 annual growth), as well as a reduction in idle productive capacity (+1 percentage point to 78,5% use of productive capacity).

Ramiro Rodríguez, Head of Research at Cushman & Wakefield Spain, states that "Spain's economic strength is driving all dimensions of the real estate market, such as investment or the location of foreign companies in the country. Also, the manufacturing sector has enough stamina to continue expanding both production and capital investment. This will definitely boost growth and take up space.”

According to the report, European market has remained stable throughout 2016. A major challenge for the manufacturing sector in the coming months will be the decision taken by the United Kingdom to leave the European Union, which will influence tariffs and trade. However, the weakening of the pound has supported the market in the UK itself and, as of today, there is no evidence that modern plants are being relocated or closed due to the outcome of the Brexit.

As for the global market, the report notes that in the short term the manufacturing industry will continue to be partially constrained by the lack of capital investment in productive equipment. However, in the medium term, issues will arise that will affect the new industry, such as the influence that emerging technologies will have.

The report “Manufacturing Risk Index”, prepared by Cushman & Wakefield, indicates the improvement of industrial production, productive capital investment and the reduction of idle productive capacity in the country.

As a result of the findings of this report, Cushman & Wakefield anticipates that, when looking for new locations, criteria of manufacturing companies, such as operating conditions or risk profiles of a country, will be increasingly important in future decision-making, leaving a less important role to the simple criterion of cost.

Asian Dominance

The countries of Asia Pacific They continue to dominate the top five, occupying a total of four positions: Malaysia, Taiwan, China and Republic of Korea. Malaysia The country maintains its position as the most attractive market to locate manufacturing facilities. Given the diversity of the level of maturity of technology use and priorities in Asia Pacific, each country in the region is specifically focusing on areas of innovation to promote growth in the sector. This includes smart manufacturing in the form of chain automation, in response to wage inflation, or offering a connected society and better conditions for business in Singapore, despite a higher cost profile.

EMEA Region

Impact Brexit The German market does not present any major threats at the moment. The outlook for 2016 looked subdued, with slow growth in major European markets, falling commodity prices and instability in emerging markets. However, the sector has been supported by the weakening pound, so the outlook for 2017 has improved. While the German market has traditionally been renowned for its engineering, a number of European countries such as Hungary, Sweden and the Czech Republic They remain in the top 10 due to their manufacturing capacity and their ability to offer cheaper assembly alternatives.

North America

The report shows that both United States , the to Canada have consolidated their positions within the TOP 10, with no variation in the ranking. Before the elections that culminated in the victory of Donald Trump, there had already been an increase in manufacturing, partly due to a shift in focus towards the more valuable side of the production process.