Research on the performance of the manufacturing sector
SECTION 2: INTERNATIONAL MANUFACTURING ENVIRONMENT AND THE IMPORTANCE OF SMMES
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SECTION 2: INTERNATIONAL MANUFACTURING ENVIRONMENT AND THE IMPORTANCE OF SMMESImportance of manufacturing – International experienceManufacturing is a wealth-producing or wealth creating sector in the economy, where the service sector tends to be wealth consuming (Friedman 2006). Even though the tertiary sector in most economies is currently dominant as a percentage of the economy and employment creation, most of these economies were built from a strong manufacturing base. According to the 2010 United Nations (UN) data, the US is still the largest manufacturer in the world, with a share of 20.2% of the world’s manufacturing, closely followed by China at 18.9%. Japan is third with 11.1% of manufacturing and Germany fourth with 6.4%. The top 10 countries in the world manufacture 72.3% of the world’s manufacturing (see Figure 1) Figure 1: Share of Worlds manufacturing of the top 10 manufacturing economies in 2010 
Source: United Nations Figure 2 shows the manufacturing output by the top 10 manufacturing countries in constant 2005 US$ prices. China has increased its manufacturing output from $153.2 billion in 1990 to $1.6 trillion in 2010 (in constant 2005 prices). This is an increase from 3% of total world manufacturing in 1990 to 18.9% in 2010. The share of US manufacturing has remained flat from 20.3% in 1990 to 20.2% in 2010, but has increased from $1 trillion in 1990 to $1.7 trillion in 2010. Figure 2: Trend in manufacturing output in the top 10 manufacturing countries (US$, constant 2005 prices) 
Source: United Nations South African manufacturing (not shown in the graph) has increased in dollar terms from $30 billion in 1990 to R44 billion in 2010 (in constant 2005 prices), but the SA share of world manufacturing output has decreased from 0.61% in 1990 to 0.5% in 2010. This highlights the need for domestic policy to improve the domestic economy and manufacturing output. Table 1 shows the manufacturing share of total gross fixed capital formation (GFCF) for the top 10 manufacturing countries and South Africa. It is clear from this table that China is building their economy on manufacturing activity, having a share of 43.1% of manufacturing as a percentage of GVA in 2010. The republic of Korea also has a high manufacturing share of 30.4% in 2010 (up from 27% 2004). Germany and Japan have got manufacturing shares of GVA of above 20%. South Africa and Mexico are below 18%. Table 1: Manufacturing share of gross value added in the top 10 manufacturing countries and South Africa from 2004 to 2010
Source: United Nations, own calculations Directory: Publications -> Publications Publications -> Preparation of Papers for ieee transactions on medical imaging Publications -> Adjih, C., Georgiadis, L., Jacquet, P., & Szpankowski, W. (2006). Multicast tree structure and the power law Publications -> Swiss Federal Institute of Technology (eth) Zurich Computer Engineering and Networks Laboratory Publications -> Quantitative skills Publications -> Multi-core cpu and gpu implementation of Discrete Periodic Radon Transform and Its Inverse Publications -> List of Publications Department of Mechanical Engineering ucek, jntu kakinada Publications -> 1. 2 Authority 1 3 Planning Area 1 Publications -> Sa michelson, 2011: Impact of Sea-Spray on the Atmospheric Surface Layer. Bound. Layer Meteor., 140 ( 3 ), 361-381, doi: 10. 1007/s10546-011-9617-1, issn: Jun-14, ids: 807TW, sep 2011 Bao, jw, cw fairall, sa michelson Publications -> Rare detections of North Pacific right whales in the Gulf of Alaska, with observations of their potential prey Download 3.84 Mb. Share with your friends:
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