Insight

Cost of manufacturing operations around the globe

Assessment of how the U.S. compares to its main trading partners as a location for manufacturing

Erkan Erdem

Erkan Erdem

Principal, Economic & Valuation Services, KPMG US

+1 703-286-8188

Oommen Thomas

Oommen Thomas

Managing Director, Tax, KPMG US

+1 415-963-8125

Talha Muhammad

Talha Muhammad

Manager, Economic & Valuation Services, KPMG US

+1 212-909-5401

Brian Heckler

Brian Heckler

National Sector Leader, Industrial Manufacturing, KPMG US

+1 312-665-2693

Ulrich Schmidt

Ulrich Schmidt

Principal, State & Local Tax, KPMG US

+1 267-256-2786

The competitiveness of the manufacturing sector in the United States has been discussed extensively in the press and economic literature in recent years. This joint study by KPMG and the Manufacturing Institute (MI) provides a current assessment of how the U.S. compares to its main trading partners as a location for manufacturing.

Specifically, this study compares the primary and secondary factors that impact the cost of operations (Cost of Doing Business or CoDB) of a business conducting manufacturing operations in the United States relative to 16 other countries that are the leading manufacturing exporters to the U.S. These 17 economies together account for about four-fifths of global value added in manufacturing, and thus a comparative analysis across countries provides insight into how regional economic factors may affect the global competitive landscape in manufacturing.

Our approach examines different cost factors including costs that directly impact a firm’s bottom line (Primary Costs) and costs that typically impact a firm’s operating costs and profits more indirectly (Secondary Costs).

 

Cost of Manufacturing Operations Scenario Tool

The scenario tool can be used  to modify the Primary and Secondary cost indices and components in the study to see how they impact the Cost of Doing Business (CoDB) Index in different countries.