Across the world, the manufacturing industry has changed and developed in the past several years, led by a global recession and slowing economies in developing and advanced nations. With new technologies, methods, demands and expectations, the manufacturing industry has needed to make adjustments in production and sourcing, in addition to determining how to best handle its increased need for international banking.
The sector has remained strong in the U.S. and China, two of the top producing countries in the world. According to Reuters, factories in the U.S. were riding a manufacturing wave in early December, and the industry also grew in China during the same timeframe.
A new report from the McKinsey Global Institute revealed that the expanding international presence of the manufacturing industry has resulted in a changing economy, and will continue to change how the global economy functions in the future. The industry is one that has grown significantly, and will continue to expand in the coming years. According to the McKinsey report, manufacturing has grown and is currently responsible for 16 percent of global GDP and 14 percent of worldwide employment.
A changing industry
This spike in employment and production worldwide could lead the industry to expand even further, the McKinsey report revealed. As countries continue to lift themselves out of the global recession, they may find themselves increasing their levels of exports and growing international sales.
As the industry continues to grow, it will not remain static. Manufacturing is made up of a variety of separate industries that all grow at different rates and see varying rates of output. Some companies, such as pharmaceutical manufacturers or chemical producers, could see more global growth than other enterprises.
These changes are not limited to the future. In fact, growth in manufacturing is currently resulting in a variety of new developments. The McKinsey study revealed that by 2025, the majority of consumption will occur in emerging economies, meaning manufacturers will have a plethora of new opportunities to sell their goods and make a profit overseas. This will also mean companies need to determine which countries will provide the most potential benefits and place their operations accordingly, which could result in an increased need for knowledge of foreign exchange banking and international markets.
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