Where will manufacturing take place in 2025? This is a critical question for occupiers and investors making location decisions about industrial and logistics facilities. The Future of Global Manufacturing report, produced jointly by CBRE Research and Oxford Economics, considers where the main locations for global manufacturing will be by the year 2025, and what this will mean for industrial and logistics real estate.
Five of the 10 fastest-growing manufacturing hubs are in Asia Pacific, according to the report. Light manufacturing will grow fastest in the new “Asian tigers” of Indonesia, Malaysia, Vietnam and the Philippines, due in large part to their significantly lower manufacturing wages compared to China.
Meanwhile, precision engineering is likely to continue to flourish in the developed world (particularly the U.S., but also Western Europe) but without translating into significant numbers of new jobs due to increasing use of robotics and automation in this sector.