Six Things to Know About the Top 100 Global Manufacturers
The manufacturing industry has changed drastically over the recent decade. What impact will these shifts have on the industry moving forward? Here are six things you should know about the top 100 manufacturing companies and how the industry leaders will continue to shape trends in years to come.
- Globally, the top 100 manufacturers generated a combined revenue of USD6.7 trillion, which accounts for 14% of the global manufacturing output in 2017.
- Out of the100 leading manufacturers, 44 were primarily engaged in the production of automotive products or hi-tech goods. There is a growing global demand for these products helped companies increase their revenue at a faster rate in comparison to other manufacturing sectors.
- The largest companies came from developed countries with USA and Japan leading in terms of the number of companies making into top 100 rank. Strong domestic B2B demand, efficient production process and R&D capabilities secured the positions of American and Japanese companies.
- Emerging markets, with China at the front, are catching up. Faster economic growth and gradually expanding B2B demand is driving the expansion of manufacturers in emerging markets.
- To sustain future revenue growth, manufacturers, particularly in developed countries, are increasingly diversifying their scope of activities and product portfolios. Higher value-added sectors, including automotive, aerospace and electronics are particularly attractive given their higher profit margins and the ability to absorb higher production costs.
- Companies are expanding their revenue through Mergers and Acquisitions (M&A’s). Growing organically is becoming more difficult due to saturated demand in developed markets and growing competition. M&A’s help companies expand into new markets and increase their revenue.
To learn more about Top 100 companies, download our strategy briefing extract: Top 100 Global Manufacturing Companies.