Interesting graphics on manufacturing

Insightful report from the MGI on the state of global manufacturing. Here are some excellent graphics. The MGI report identifies five broad groups of manufacturing industries, classified based on cost (capital, energy, and labour intensity), innovation (R&D intensity), and tradeability (trade and value intensity).






















Global innovation for markets category forms the largest share of manufacturing value added across the world.

Regional processing groups contributes the largest share to employment in advanced economies, while global innovation for local markets is the largest employer in developing countries.

Manufacturing's importance to the world economy is highlighted by its disproportionate contribution to exports, innovation, and productivity growth.

An interesting finding is that service type jobs take up an increasing share of manufacturing activity. Service inputs (everything from logistics to advertising) make up an increasing amount of manufacturing activity. Depending on the segment 30-55% of manufacturing jobs in advanced economies are service type function, and service inputs make up 20-25% of manufacturing output. In the United States, every dollar of manufacturing output requires 19 cents of services. And in some manufacturing industries, more than half of all employees work in service roles, such as R&D engineers and office-support staff.

The economic multiplier of additional jobs on output is higher for services than for manufacturing.
















Government support plays a very important role in promoting innovation.Industrial Policy takes different forms across the world and is pervasive.

Automotive sector has the highest incidence of government support.
















High global raw material prices may have contributed to a hollowing out of the manufacturing sector by shifting value upstream to commodities producers.