Visualizing The Changing Face Of Global Manufacturing

Tyler Durden's picture


Manufacturing industries have helped drive economic growth and rising living standards for nearly three centuries, and for some developing economies (as McKinsey notes in a recent report) continues to do so. Things are changing, however, as manufacturing output (as measured by gross value added) grew by 2.7% annually in advanced economies and 7.4% in large developing economies (from 2000 up until 2007); the leaders are changing rapidly China, India and Russia rise and Germany, Japan, UK, and Canada are sliding. The following chart simplifies the evolution of global manufacturing economies over the last four decades.



Source: McKinsey

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Thu, 12/20/2012 - 19:25 | 3084506 Kreditanstalt
Kreditanstalt's picture

I can't believe the US is anywhere near the top.

 This is the Walmart and Netflix and Chipotle Grill economy.

Thu, 12/20/2012 - 19:40 | 3084578 cougar_w
cougar_w's picture

But you gotta admit Chipotle makes an okay burrito though. Just say'n.

Thu, 12/20/2012 - 19:59 | 3084652 dtwn
dtwn's picture

It's all about the cilantro-lime rice!

Thu, 12/20/2012 - 20:22 | 3084699 The Alarmist
The Alarmist's picture

Can't get anything like it (the cilantro rice) in Europe.

I can believe the US is at the top, but largely by sheer size of the economy and a head start to domination after WWII. 

Fri, 12/21/2012 - 00:04 | 3085547 Enslavethechild...
EnslavethechildrenforBen's picture

Sorry folks, this article is full of holes, not based on any facts..

Have you never heard of "made in China"?

Come on Tyler...


It's known as the "DOLLAR"

Fri, 12/21/2012 - 02:23 | 3085934 AldousHuxley
AldousHuxley's picture

When you have foreign visitors visiting a country, they want to purchase a memorabilia that's unique to the location to take back home. When foreigners visit USA, they return empty handed because everything says made in China.



What the neoliberals failed to take into globalization calculation was the value of refined manufacturing process. American gave that away along with workforce skill development and all US has left is stupid brand marketing now finance is dead.


well....the american dream itself perhaps was just a brand marketing afterall nd soon Chinese are finding out emperor is naked and they hold all the cards once they build up their exchanges and military.

Fri, 12/21/2012 - 13:42 | 3087396 supermaxedout
supermaxedout's picture

There are still many excellent products made in the US which are exported all over the world.

One example: The US is the unchallenged leader in the production of high quality Tiffany glas. There exists cheap immitated products from China but it can not reach the brillance and colors of the US products. Experience and production secrets do ensure that one has to shop these materials in the US if he wants quality. Of course we do not speak about billions but its a considerable niche market. If the US would have many of such special producers it would add up and technology clusters would emerge.




Fri, 12/21/2012 - 01:18 | 3085821 Larry Dallas
Larry Dallas's picture

America is #1 manufacturer of diabetes. And exporter too...

Thu, 12/20/2012 - 19:54 | 3084595 JustObserving
JustObserving's picture

We are good at manufacturing data. And money.  

Thu, 12/20/2012 - 19:58 | 3084648 SilverDOG
SilverDOG's picture

We are #1 weaponseses, my preciousesesss.

Our #1 export.

Thu, 12/20/2012 - 20:16 | 3084716 JustObserving
JustObserving's picture

Just the facts:

“In 2011, the US led in arms transfer agreements worldwide, making agreements valued at $66.3 billion (77.7 percent of all such agreements), an extraordinary increase from $21.4 billion in 2010. The US worldwide agreements total in 2011 is the largest for a single year in the history of the US arms export program,” according to the report prepared for Congress.

In an earlier period, Washington justified such weapons deals as part of its Cold War strategy of countering the influence of the Soviet Union and propping up regimes aligned with the West against Moscow and its allies. This was under conditions where Soviet arms sales to the so-called Third World rivaled and even surpassed those of the United States.

Today, however, as the CRS report makes clear, the US accounts for more than three quarters of global arms deals, with the share of its closest competitor, Russia, amounting to just 5.6 percent.

The massive rise in US arms sales is driven by the accelerating turn toward aggressive war as a means of achieving the strategic global objectives of US imperialism, combined with the insatiable drive for profit and power by America’s bloated military-industrial complex.

The lion’s share of the rise in arms exports is directed to Saudi Arabia and the United Arab Emirates (UAE), which together account for $38.2 billion of the $66.3 billion total. The other major sales were $2 billion worth of antimissile batteries to Taiwan—a provocative move aimed against China—and $6.9 billion in arms to India, ratcheting up tensions with its regional antagonist, Pakistan.


Fri, 12/21/2012 - 00:37 | 3085717 Urban Redneck
Urban Redneck's picture

Those facts are misleading...

US weapons systems are generally not competitive on a cost basis.  Hence, the US arms exports are financed by first exporting US taxpayer dollars (foreign aid) which are then recycled right back into US MIC manufacturing. 

As to the US vs Russia market share- the numbers (which are $ spent, not end users) are skewed by 1) the high dollar value of US systems, and two the division of USSR's arms industry largely between Russia and Ukraine (which also led to product cycle delays in the former Communist block while they were going through a "restructuring" as the US was spending its "Peace Dividends" on foreign aid to help finance the US MIC's ongoing sales boom).


Thu, 12/20/2012 - 20:28 | 3084814 The Alarmist
The Alarmist's picture

I believe the top US export was Transportation Equipment ... have not done the research to see if that includes weapons systems.

Thu, 12/20/2012 - 20:24 | 3084788 SanOvaBeach
SanOvaBeach's picture

No surprise here.  Our manufacturing capabilities are the biggest in the world.  The simple stuff went overseas along with the jobs.  How can American industry compete globally when you got a fucking union that wants outrageous hourly rates to its workers along w/ a big benefit package.  I fired everyone except the robots, robot tech's, sales and marketing staff.  Of course I gave the designers big raises.  Most of our customers are offshore anyway.  Have a Merry Xmas!

Thu, 12/20/2012 - 23:54 | 3085528 Harbanger
Harbanger's picture

"I can't believe the US is anywhere near the top."  That's because we tend not understand facts that don't fit our predetermined world view.  Unfortunately many peoples views about the US were shaped by the MSM culture. 

Fri, 12/21/2012 - 02:18 | 3085922 AldousHuxley
AldousHuxley's picture

you need tons of $1 Chinese toys manufactured to measure aginst billion dollar 747 orders from US.


US also has Chinese factory slave of her own....illegals on farms....and US exports lots of food.

Fri, 12/21/2012 - 02:07 | 3085899 Tommy Gunner
Tommy Gunner's picture

How hard is it to believe - America is the biggest exporter of death machines

Fri, 12/21/2012 - 08:58 | 3086233 Bogdog
Bogdog's picture

USA#1 due to congresscritters/geitner/bernake-vapormoney buying and exporting armaments to ferrin countries, like Egypt/Isreal/Jordan/Iraq/Afganistan, etc, etc...

It's a stimulus program.

Take away the US arms industry and we are probably midway down the list.

Thu, 12/20/2012 - 19:27 | 3084511 otto skorzeny
otto skorzeny's picture

death cross with S Korea and Spain. Gangnam style. UK is doing well-probably do better on a "countries with large hostile muslim population" chart

Thu, 12/20/2012 - 23:24 | 3085439 DoChenRollingBearing
DoChenRollingBearing's picture

otto, I lack any skill in T/A, but I can tell you that South Korea is indeed a manufacturing powerhouse, and they deserve it!  Bunch of 60-hour workweeks and high educational standards.

"Gangnam Style" is proof that Asia likes what they see in S. Korea.

Note how S Korea grew from 1980 until now as well, as fast as anybody else, they are now No. Seven!

Thu, 12/20/2012 - 19:27 | 3084514 francis_sawyer
francis_sawyer's picture

Rubber dogshit exports from China are on the rise...

Thu, 12/20/2012 - 20:30 | 3084821 The Alarmist
The Alarmist's picture

Don't go writing checks your body can't cash.

Thu, 12/20/2012 - 19:27 | 3084529 WatchingIgnorance
WatchingIgnorance's picture

Ooooo . . . can I have an eggroll with my sweet and sour shrimp?


Thu, 12/20/2012 - 19:29 | 3084536 pragmatic hobo
pragmatic hobo's picture

so, ... if AAPL makes their iGadget, is it attributed to the US manufacturing or the Chinese manufacturing?

Thu, 12/20/2012 - 19:39 | 3084572 cougar_w
cougar_w's picture

Do'h. Of course it is attributed to both, and also to single mothers on welfare, unicorns and pragmatic hobos. You have to count these things at least a dozen times to keep the global economy growing.

Thu, 12/20/2012 - 20:01 | 3084655 SilverDOG
SilverDOG's picture


I thought... only food supply (futures) traded and was counted as such !<S>

Fri, 12/21/2012 - 09:02 | 3086238 falak pema
falak pema's picture

90% of profit margin is attributed to Apple Inc. in the Caymans and thats what this whole outsourcing shooting match has been all about. 

Mrs Jobs has a lawsuit going on about the super yacht in Amsterdam that they have bought and had custom built,  which has been arraigned in a lawsuit against the interior designer who claims he has not been fully paid!

The richer you are the more you think Scrooge Mcduck! 

Thu, 12/20/2012 - 19:34 | 3084541 Eally Ucked
Eally Ucked's picture

And what is US manufacturing providing world with? Patriot missiles at 200mln a piece? Sorry, they sell some Boeings and corn derivatives.

And deranged movies, I forgot that very important business


Thu, 12/20/2012 - 20:19 | 3084728 The Alarmist
The Alarmist's picture

The actual DVD would qualify as a manufactured product ... not sure about production (SIC 781), but I think it would be classified as a sale of services.

Thu, 12/20/2012 - 19:33 | 3084555 buzzsaw99
buzzsaw99's picture

we manufacture complex financial instruments and weapons of mass consumption

Thu, 12/20/2012 - 19:35 | 3084564 cougar_w
cougar_w's picture

And just thinking about it gives me a raging hard-on.

Thu, 12/20/2012 - 19:52 | 3084619 francis_sawyer
francis_sawyer's picture

The ultimate "fuck you" might be that if they can kick the ponzi can down the road for long enough... Technology will come out with a particle ray gun [that can be printed with a cheap 3-D printer from Taiwan] that will render modern day ammo purchases obsolete...

JTOL [A Klingon cloaking device might be your best bet]...

Thu, 12/20/2012 - 20:39 | 3084865 cougar_w
cougar_w's picture

Oh hey I got one: how about they come up with a kind of ammo powder that when radiated with x-rays or microwaves or something nonlethal is rendered inert and useless in the cartridge, and then they sell the patent to manufacturers who then saturate the market, so that anytime the police want to stop everyone else shooting they just point an x-ray machine or microwave transmitter at a building and set it to HIGH for 30 seconds.

Yeah, it could be made to work.

Dammit. Now I'm sorry I brought it up.

Thu, 12/20/2012 - 20:29 | 3084818 SanOvaBeach
SanOvaBeach's picture

And a lot more, fuck head!  Change the name of this blog to, King of Negativity. 

Thu, 12/20/2012 - 19:35 | 3084558 cougar_w
cougar_w's picture

The BRICs came into the race strong, but at the end of the circuit. They are not going to win except by being the lead nags run into the dog food mill of deindustrialization.

Thu, 12/20/2012 - 19:39 | 3084574 Eally Ucked
Eally Ucked's picture

Still they can supply you with 2$ underwear, maybe you don't like to use it and you prefer to buy gun that's fine with me,

Thu, 12/20/2012 - 20:20 | 3084749 The Alarmist
The Alarmist's picture

The BRICs won't even touch your underwear ... that shit is outsourced even lower in the chain to places like Bangladesh, where people die so you can afford to eat because you wear cheap underwear.

Thu, 12/20/2012 - 20:33 | 3084840 cougar_w
cougar_w's picture

Dammit now you've ruined underwear for me. I'll have to start going commando.

Don't get too excited, I'm a guy.



I said guy G-U-Y! You people are freaks.

Thu, 12/20/2012 - 19:41 | 3084580 ZFiNX
ZFiNX's picture

Doesn't look good for Europe.

Thu, 12/20/2012 - 19:51 | 3084623 Eally Ucked
Eally Ucked's picture

And what America is manufacturing? Fuck it but whatever I buy is made in China. So Maybe I''m missing on some products made in America, where are those things, I want to buy them! But I'm not ready yet to buy aircraftcarrier or some specialized drone (I have fate in my ageing girfriend) so what is that product?

Fri, 12/21/2012 - 20:42 | 3088888 NoClueSneaker
NoClueSneaker's picture

... nukes, guitars and corn ...

( Shit, Jack Daniels there ... )

Thu, 12/20/2012 - 20:12 | 3084700 Falconsixone
Falconsixone's picture

Manufacturing sells but who's buying? Go Canada Ahe! Don't cry for Argentina?

Thu, 12/20/2012 - 21:24 | 3084957 JR
JR's picture

The most significant factor in the development of the soviet economy was the transfer of know-how from Western nations.

That’s the conclusion of Antony Sutton in his final volume of a three-volume study of the Soviet Union (1945-1965) who wrote in 1965 that without massive dependence on Western technology, the U.S.S.R. would suffer an economic collapse. He also concluded, according to his reviewer John L. Kent, “that the kind of central planning that guides the Soviet Union has virtually no capability for self-generated indigenous innovation.”

Sutton noted that between 1917 and 1965 not a single fundamental industrial innovation was made in the Soviet Union

IOW, it was American capitalism, the by-product of freedom, which came to the rescue of communism.

Sutton, a Research Fellow at the Hoover Institution on War, Revolution and Peace (Stanford) from 1968 to 1973 and prior to that a professor of economics at California State University at Los Angeles and before that experienced engineering and mining exploration in several countries, was ahead of his time.

Lenin in 1917 made the first call for foreign technology and industrial equipment. America obliged her enemy. By 1930 more than fifteen foreign concessionaries were modernizing and even operating coal mines in Russia and Siberia, according to Kent in his 1974 review of Sutton’s work. Then, in 1933, the official “recognition” of the Soviet Union by the U.S. allowed a major transfer of U.S. technology that enabled hundreds of American (and European firms) to build dams, auto plants, steel plants, oil refineries and chemical plants in the Soviet Union. This transfer was a major factor in the U.S. depression, then at its height, according to Sutton.

Today, America’s political leaders in league with the international bankers have placed our country in similar economic trouble by off-shoring our manufacturing base, our jobs, our technology and patents, solely for the profits of the international bankers and corporations.

But, wrote Kent in 1974, there is more to it than that. As a deliberate policy, the Communists “are getting their latest technology from the West, and saving themselves all the costs of invention, development, pilot plant building, and the losses of time, money and manpower from processes and equipment that are considered failures before they are put into mass use.”

Kent wrote 38 years ago that it has been proved by the supergovernment’s circumvention of our embargo laws that"the international bankers’ loyalty is not to the United States but to a one-world government in which they and the communist powers exercise authority.”

As Frank A. Capell explained in International Bankers and Communism (1972), says Kent, “there is a close relationship between the top industrial firms in the country and the international bankers such as the Rothschilds, Lehman Brothers, the Rockefellers (Chase Manhattan), Kuhn, Loeb & Co., Lazard Freres, et al. who finance the international deals and promote trade with the Soviet Union and other Communist countries.”

These enormous profits from trade with Communism and its imperialistic slave system “benefit the international bankers who hold stock in many of the corporations” and do business with the Communists.

Fri, 12/21/2012 - 01:49 | 3085846 gallistic
gallistic's picture

"Argument from Authority" much?

Sutton was an incredible imbecile and I seriously doubt you read his massive mountain of excrement (in three volumes).

This is the guy that "testifying" before the Platform Committee of the Republican Party (feeding partisan hacks what they wanted to hear, and making them feel superior) said- " In a few words: there is no such thing as Soviet technology. Almost all — perhaps 90-95 percent — came directly or indirectly from the United States and its allies. In effect the United States and the NATO countries have built the Soviet Union. Its industrial and its military capabilities. This massive construction job has taken 50 years"

Using Tony "the douchebag" Sutton's easily impeachable horseshit, you then pivot to your second point, based on the first point's "validity".

Are you fucking serious?

Fri, 12/21/2012 - 09:03 | 3086226 falak pema
falak pema's picture

IOW, it was American capitalism, the by-product of freedom, which came to the rescue of communism....

Compare that remark with this one : The 'American Way' is ruining the planet - and must be stopped....

Now take your pick !

If you have a tooth pick to pick with! 

Thu, 12/20/2012 - 22:33 | 3085263 zippy_uk
zippy_uk's picture

Sorry to spoil the "we are all doomed because we don't manufacture any more" vibe - but I think I see a problem with the stats here.

Chart is share of global nominal. So Germany, Italy, Japan, other EU fall down while China, Brazil, India shoot up.

But how does population fit in here ? I bet Germany, Japan and Italy are demographically negative where as China, India and Brazil will have had a massive increase in populations over 30 years. Factor that in and manufacturing is alive an well in most Developed countries.

Stand out exception has to be the UK between 2000 and 2010. Explanation there is Labour under phony tony and Gordon Broke. And to think Alistair Campbell was on tv trying to make out there was amazing economic performance during these years. What a twat.

Fri, 12/21/2012 - 00:25 | 3085659 Stuck on Zero
Stuck on Zero's picture

Check the CIA website.  In any manufacturing category you can name China leads the U.S. 5:1.  That chart is la la land.  We're lost.


Fri, 12/21/2012 - 01:31 | 3085824 Element
Element's picture

France and Spain in a tail spin, and India, Russia and also Indonesia on the rise.  No wonder the old arrangements don't cut it any more. 

Got to wonder about the location of USA there though, as it was pointed out not so long ago, that there's more manufacturing going on in just one of China's largest cities than in all of the United States combined.  That may be an over-statement, but the point is valid.

Fri, 12/21/2012 - 02:09 | 3085904 Tommy Gunner
Tommy Gunner's picture

The 'American Way' is ruining the planet - and must be stopped.


Hopefully this beast of a country will implode in an orgy of hatred and fury once Bernanke's ludicrous money printing hits a brick wall.  We can't wait much longer

Fri, 12/21/2012 - 12:15 | 3087025 Winston Smith 2009
Winston Smith 2009's picture

That table doesn't come close to matching this list:

The US is #4.

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