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UN Organization predicts growth in global manufacturing

There are several metalic gears turning within a manufacturing machine.
13 Sep 2013

The United Nations Industrial Development Organization recently predicted growth in world manufacturing production in 2013. UNIDO's quarterly report is a respected source of information about the manufacturing industry and economic trends worldwide. Major European economies are well on the way to recovery from the recent recession, and addressing the trend of declining industrial production as well. World manufacturing growth statistics by UNIDO support this claim.

Economies of all types, from developed to emerging markets, are all growing in the manufacturing sector. Global manufacturing is expected to increase 2.7 percent. Developing and emerging markets are growing at a higher rate than the global industry, with a rise of 7.1 percent in the second quarter recorded. Latin America's manufacturing output in particular grew 2.1 percent.

The manufacturing industry has undergone many changes since the recession, as well as in the years prior to it. While China used to be a very popular location for manufacturing from around the world, its popularity and supremacy in the industry are both decreasing. It is cheaper to pursue other options, such as manufacturing in Mexico. The cost savings from such a decision can be substantial. Furthermore, there are industry hubs in Mexico where skilled labor is available with straightforward labor laws and in cooperation with local governments. The same cannot always be said for other global manufacturing options.

Manufacturers in Mexico are likely to have been aware of these developments already. The country is attractive to American organizations seeking to reduce manufacturing costs because of its proximity to the U.S. and affordable labor, real estate and materials. Much of Mexico's manufacturing activity takes place under the umbrella of shelter companies, which help foreign manufacturers take advantage of the favorable climate for business in the country.

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