International Trade & Investment

US overtakes Germany as a production location

A study by consultancy Ingenics AG places the US ahead of Germany in its overall assessment of production locations, while Great Britain ranks third.

Archive 5 Apr 2019 Barbara Rusch
HMI-ID03-062br_ingenics
US overtakes Germany as a production location (Photo: Ingenics AG)

Every two years since 2015, Ingenics AG has been analyzing the competitiveness of selected production countries using a mathematical model. The assessment also draws on country and company studies, as well as macroeconomic data from surveys conducted by international organizations, think tanks, and research institutes and measures the following factors: law & politics, market, infrastructure, production, human capital, industry & suppliers, and digitalization & innovation.

In the current ‘ Benchmark study of international production locations ’, the Ulm-based consultancy rates 15 countries in terms of their production conditions. New in the ranking are Malaysia and Vietnam, which the experts believe are set to become increasingly interesting locations. The US currently tops Ingenic’s ranking of the world’s best production locations, followed by Germany, which previously held the top spot, but has lost points in some categories the last two years. Although Great Britain currently ranks third, the negative effects of a looming Brexit can be seen in all categories; in particular the country’s industrial strength has declined.

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