GMCIDeloitte Global Consumer & Industrial Products Industry Group Council on Competitiveness

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2 GMCIDeloitte Global Consumer & Industrial Products Industry Group Council on Competitiveness

3 AGMCI 43 B

4 Global Manufacturing Competitiveness IndexGMCI Internet-of-Things IoT MITI-V

5 2016 foreign direct investmentfdi

6 2016 GDP Deloitte (Global Manufacturing Competitiveness Index GMCI) 2016GMCI2016 GDP ,2305, ,55364, GDP60% 3

7 Deloitte ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( +1) -1) ) ) +6) -1) +1) -2) -2) -1) -1) +6) +4) ) +4) -1) -1) -5) -7) +3) -1) -1) +6) ) +2) -4) -2) +5) -3) -2) ) ) -3) +2) ) -2) ) ) ) )

8 #1 #2 #3 #4 #5 #6 #7 #8 #9 # * #15 #17 Deloitte

9 GDP GDP output per worker 2 2 GMCI GDPvs $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ 35% 40% 45% 50% 55% 60% 65% 70% 17% 14% 14% 15% 30% 53% 28% 58% 32% 55% 27% 58% 3, +5 1, +3 4, +2 8, +9 35% 23% 42% 43% 14% 43% 37% 38% 25% 2, -1 5, -3 23, Purchasing Power ParityPPPGDP. Deloitte2016DeloitteUNCTAD I X, ±Y

10 , % Deloitte2016

11 2016 value proposition % % 20176% 11 industrial value-add % % 12 70% % 13 GDP200741% % % %

12 MITI-V Deloitte2016Deloitte (UNCTAD) II

13 %GDP G (NAFTA) ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( Deloitte2016

14 productivity gap European Commission

15 2016

16 2016 BRIC ? 5 5? ? 28 (Deloitte ) ? (Make in India) (Skill India) BRIC Goldman Sachs 2010

17 GDP Deloitte (IMF) (World Economic Outlook) III GDP GDP6% GDP

18 2016 (MITI-V/The Mighty 5) ( +4) ( +6) ( ) ( +4) ( +6) Deloitte % ,74043% 2020

19 , GDP (tax holidays) 2 3 GDP 5 50% 5.3% 62% 44% 1, % 6.1% 55% 42% % 2.9% 73% 36% % 5.5% 40% 41% % 5.9% 72% 43% % 7.8% 94% 37% 1, *2013 ** Deloitte (EIU) (UNCTAD) (World Bank) (IV)

20 Deloitte

21 Deloitte

22 A (dual system) (mechatronics) 60% % 67% 66% 47% 33% 35% Deloitte (STEM graduates)2010 Deloitte(OECD)(University Grant Commission, India) (V)

23 2016 (STEMgraduates) Bloomberg Deloitte(TheManufacturing Institute) GDP GDP GDP Deloitte(UNESCO) (VI) (2015 talent shortage survey, Manpower Group) (VII)

24 Deloitte

25 Deloitte(EIU) (VIII)

26 GDP GDP Deloitte(ILO) (IX) 2020 International Labor Organization 111, % %6.5% %0.2% 52

27 (innovation ecosystems) 5.5 World Economic Forum (The Global Competitiveness Report ) availability = 7 = 1 = 7 = 1 = 7 = (The Global Competitiveness Report ) (X)

28 Deloitte (foreign ownership) DeloitteAdvanced Technologies Initiative40C-level executive 55 Aspen Institute GDP Deloitte (XI)

29 GDP * Deloitte (EIU) (World Bank) (XII) , ,000 Deloitte(Center for World University Rankings) (XIII)

30 Deloitte %GDP12% Deloitte(World Bank) (XIV)

31 Deloitte(UNCTAD) (XV) 21

32 Milken Institute22% gross state productgsp 3,75025% 2, DeloitteDeloitte (XVI)

33 Deloitte ,49229% 65 24

34 GDPvs GDP2011 Deloitte(OECD)(UNESCO) (XVII)

35 GDP Bloomberg Innovation Index % Japan Revitalization Plan 50% 72 73

36 Deloitte US Energy Information Agency (XVIII) 54% 50% 44%25 shalefracking technology BTU 2.0British Thermal Unit BTU 27

37 2016 BTU % 75 EIU 18% % % % Lake Charles Deloitte (XIX)

38 Deloitte CompoundAnnual Growth Rate 2816% 3,549 3% 42, % 1,154 9% % % 32% 50% DeloitteEIU (xx)

39 GDP. Deloitte (XXI) GDP17.1% 9,1464,8123, % 34.3% % % 100%99% 77%40%8

40 Deloitte2016

41 WorldwideGovernance Indicators %

42 Advanced Manufacturing Partnership Steering Committee National Network for Manufacturing Innovation Deloitte2016

43 Deloitte2016

44 Trans- Pacific Partnership agreement

45

46 2016 AGMCI AGMCI GDP 0.8% 2.3% 2013GDPGDP 12.3% 16.7% 2015 $38.0 $ % 60.2% % 25.3% 2013UNESCO 4,019 2, $42,225 $14, % 3.8% (FDI) % BTU ,49229 GDPGDP200428% % 19981, , % ,

47 2016 AGMCI % % 2.3% % Deloitte (XXII)

48 2016 AGMCI GDP 8.6% 2.3% 2013GDPGDP 29.9% 16.7% 2015 $3.3 $ % 60.2% % 25.3% 2013UNESCO 1,089 2, $3,549 $14, % 3.8% ,40026% % 70% GDP % 20142% , % , %202278% Deloitte

49 2016 AGMCI GIPC USChamber ofcommercesglobal Intellectual Property Center % % % %2017 6% % 20159% % 7% GDP195276% % GDP46% Deloitte (World Bank) 42.6% 79.9%83.5%86.6% %20 7,000 Deloitte (XXIII)

50 2016 AGMCI GDP 2.8% 2.3% 2013GDPGDP 22.2% 16.7% 2015 $40.5 $ % 60.2% % 25.3% 2013UNESCO 4,472 2, $24,110 $14, % 3.8% % (dual system) 60%344

51 2016 AGMCI (VC) 2008 GDP0.045% % % (EIU)2015GDP 1.8% (EIU) PPP (energy revolution, Energiewende) 18% % % 2015 (IMD) GDP 2014 Deloitte (XXI)

52 2016 AGMCI GDP 0.2% 2.3% 2013GDPGDP 18.8% 16.7% 2015 $24.0 $ % 60.2% % 25.3% 2013UNESCO 5,201 2, $19,502 $14, % 3.8% 2014

53 2016 AGMCI %31.3% % % % , Deloitte (XXV)

54 2016 AGMCI GDP 1.4% 2.3% 2013GDPGDP 12.9% 16.7% 2015 $1.7 $ % 60.2% % 25.3% 2013UNESCO 157 2, $1,154 $14, % 3.8% 2013GDPGDP12.9% % %20132, GDP 25% Narendra Modi20145 (Make in India) (industrial corridor)

55 2016 AGMCI GDP14.4% 8% Land Acquisition Act of (WoldBank) (GST) Goods and Services Tax octroi central sales taxstate sales tax (NPA)2015 non-performing assets 4.4% %(non-food credit) % % % % 5% 96% Skill India Initiative2022 Deloitte (XXVI)

56 2016 AGMCI GDP 4.0% 2.3% 2013GDPGDP 31.1% 16.7% 2015 $20.7 $ % 60.2% % 25.3% 2013UNESCO 6,457 2, $14,513 $14, % 3.8% % 2015 (comparative data) % GDP2.5% 0.9% 0.2% 2015J.D. Power % 2015 (Bloomberg Innovation Index) 50 (FTAs)

57 2016 AGMCI 2011 (OECD) % (OECD) (OECD) %200234% % (FDI) % (Deloittes Asia Pacific Economic Outlook) % 3rd Science & Technology Basic Plan % % % % (innovation vouchers) % % % %20252% 3.6% (EIU)96% 2014(second national energy plan) % % Deloitte (XXVII)

58 2016 AGMCI GDP 3.2% 2.3% 2013GDPGDP 17.6% 16.7% 2015 $6.2 $ % 60.2% % 25.3% 2013UNESCO 383 2, $7,081 $14, % 3.8% GDP % GDP20% % % % %4%

59 2016 AGMCI (OECD) 2014GDP 38, The Productivity Law (Logistics Performance Index) (OEMs) (Logistics Performance Index) 15 Deloitte (XXVIII)

60 2016 AGMCI GDP 0.2% 2.3% 2013GDPGDP 9.7% 16.7% 2015 $31.2 $ % 60.2% % 25.3% 2013UNESCO 4,055 2, $29,888 $14, % 3.8% % % % 17% , % % % % 2014INSEAD Global Innovation Index , (top quality research) 16%

61 2016 AGMCI , , ,5670.9%2013 2, Engineering Employers Federation Deloitte (CFO Sur vey) 20135,4806.7% 20145, % National Infrastructure Commission (Catapult Centers) (Advanced Manufacturing Supply Chain InitiativeAMSCI)(RGF) 52% Deloitte (XXIX)

62 2016 AGMCI GDP 4.0% 2.3% 2013GDPGDP 29.2% 16.7% 2015 $9.4 $ % 60.2% % 25.3% 2013UNESCO 5,995 2, $14,480 $14, % 3.8% 2013GDP29.2% 17% % World Economic Forum2015 Global Competitiveness Report Free Trade Zones Index of Economic Freedom

63 2016 AGMCI % 42.1% ECFA ECFA United States Trade Representatives watch International Intellectual Property Alliance Trans-Pacific Partnership, TPP 12 Deloitte (XXX)

64 2016 AGMCI GDP 2.2% 2.3% 2013GDPGDP 10.6% 16.7% 2015 $30.6 $ % 60.2% % 25.3% 2013UNESCO 4,490 2, $25,977 $14, % 3.8% 20135, %20146,19121 (sector) 18 North American Free-Trade Agreement % 98.2% Advanced Manufacturing and Automotive Innovation Funds Strategic Aerospace and Defense Initiative 350National Shipbuilding Program

65 2016 AGMCI Canadian Manufacturers & Exporters Management Issues Survey 56% (NAFTA) Comprehensive Economic and Trade Agreement, CETA (Comprehensive Economic and Trade Agreement)2016 The Conference Board of Canada , (EIU) Deloitte (XXXI)

66 2016 B B: Deloitte (Fortune China)Publibase ManufacturingResearch Now World Wide Business Decision Makers B1 29%5, %23 B348% 31% 21% 40

67 2016 B B1 Deloitte2016 B2 2.7% 11.2% 10.1% 30.0% 16.7% 28.7% 23.1% 19.0% 27.1% 31.5% Deloitte2016 B3 1.4% 2.1% 3.6% 4.6% 9.6% 18.9% 13.0% 8.2% 13.4% 16.9% 47.8% 14.3% 15.2% 31.1% Deloitte2016

68 2016 B 2016 B4 50( B5)2016 B4 B5 5, , point selfanchoring scales 12 35

69 2016 B 1 12 i i=1-40j j = 1-4kk = 1-10x_ijks_ ijk ij k 2 I mm= 1-12Z I,m 3 Z l,m = (x l,m x ijk ) S ijk Z I,m Z w I mm = 1-40 [CM m ][SCS m ] B6 (5-point, self-anchoring scales) 15 1 jj=1-4 kk= X jk S_ jk 2 I mm=1-22 Z Z l,m = (x l,m x ijk ) S ijk 3 4 Z l,wl = w l xz l,m m n Z I, m B5 Z Z l,wl = w l xz l,m CM m = n l=1 Z l,wl n CM m 10100SCS m SCS m = x CM m min(cm m ) max(cm m ) min(cm m ) mincm m CM m m= 1-12 maxcm m m CM m m = 1-12

70 2016 B 4 m PS m PS m = n l=1 Z l,wl n SPS m = x PS m min(ps m ) max(ps m ) min(ps m ) n minps m PS m m = 1-22 maxps m PS m m= B6 GMCI

71 2016 B Z l,m = (x l,m x ijk ) S ijk

72 2016 B Z Z l,wl = w l x Z l,m

73 2016 B Z CM m = n l=1 Z l,wl n

74 2016 B GMCI SCS m = x CM m min(cm m ) max(cm m ) min(cm m )

75 2016 I: Deloitte analysis based on exports data- merchandise trade matrix- product groups, exports in thousands of dollars, annual, , United Nations Conference on Trade and Development (UNCTAD), data on educational attainment from UNESCO Institute for Statistics (2013b) and on methodology from Barro and Lee (2013), HDI#a, accessed in February III: IV: TableViewer/tableView. aspx?reportid=24739, January 29, II: Ibid. Deloitte analysis based on data from: International Monetary Fund (IMF), Subdued Demand, Diminished Prospects, World Economic Outlook Update, accessed in January IMF, World Economic Outlook, pubs/ft/weo/2015/02/weodata/index.aspx, accessed in October, Deloitte analysis based on data from: Consumption expenditure (as % of GDP): Economist Intelligence Unit (EIU), accessed on January 22,2016. Real GDP growth: EIU, accessed on January 22, Manufacturing exports as % of total exports: Merchandise trade matrix product groups, exports in thousands of dollars, annual, , United Nations Conference on Trade and Development (UNCTAD), TableViewer/tableView.aspx?ReportId=24739, accessed on January 29, Share of year olds in total population (%), 2014: EIU, accessed on January 22, Researchers per million inhabitants: Researchers in R&D (per million people), World Bank, indicator/sp.pop.scie.rd.p6, accessed on January 22, Legal and regulatory risk: EIU, accessed on January 22, VII: VIII: IX: Researchers per million: UNESCO, Science, technology and innovation, Total R&D personnel (FTE) Total, data.uis.unesco.org/index.aspx?datasetcode=scn_ DS&popupcustomise=true&lang=en, accessed in January Government expenditure on education: UNSECO, Education: Expenditure on education as % of GDP (from government sources), aspx?datasetcode=scn_ds&popupcustomise=true&lang=en, accessed in January Deloitte analysis based on 2015 Talent Shortage Survey by Manpower Group, connect /408f7067-ba9c-4c98-b0ec-dca74403a802/2015_ Talent_ Shortage_ Survey- lo_res.pdf?mod=a JPERES&ContentCache=NONE, accessed on January 22, Deloitte analysis based on manufacturing labor costs data from EIU accessed on January 22,2016. Deloitte analysis based on data from Labor productivity, Key Indicators of the Labor Market 2015 KILM, International Labor Organisation (ILO), WCMS_422456/lang-- en/index. htm, accessed on January 22, X: Deloitte analysis based on data from: Quality: Local supplier quality, 1-7 (best), World Economic Forum (WEF), report /, accessed on January 22, Availability of local supplier base index: Local supplier quality, 1-7 (best), WEF, report /, accessed on January 22, Infrastructure Rating: EIU, accessed on January 22, V: Deloitte analysis based on data from: STEM graduates in the United States, Japan, South Korea, and Germany: Graduates by field of education, Organisation for Economic Co- operation and Development (OECD), oecd.org/index.aspx?datasetcode=rgradsty#, accessed in March STEM graduates in China: Number of graduates in regular institutions of higher education, National Bureau of Statistics of China, accessed in March XI: XII: State of cluster development: State of cluster development, 1-7 (best), WEF, report /, accessed on January 22, Deloitte analysis based on data from starting a foreign business, investing across borders, World Bank, org/ Data/ExploreTopics/Starting-a-foreign-business, accessed on January 22, Deloitte analysis based on data from: Government expenditure on education as % of GDP (%), World Bank, countries, accessed on February 01, VI: STEM graduates in India: Education Statistics at a glance, University Grants Commission, Ministry of Human Resource Development, accessed in March Deloitte analysis based on data from: Mean Years of schooling: Barro and Lee (2014), UNESCO Institute for Statistics (2013b) and HDRO estimates based on Gross enrolment ratio, tertiary, both sexes (%), World Bank, accessed on February 01, XIII: Deloitte analysis based on data from universities in top 1,000 global list, Center for World University Rankings, org/2015/, accessed in February XIV: Deloitte analysis based on data from:

76 2016 XV: XVI: Logistics performance index: Quality of trade and transportrelated infrastructure (1=low to 5=high), World Development Indicators, World Bank, LP.LPI.INFR.XQ, accessed on July 28, Internet users (per 100 people), World Development Indicators, World Bank, P2, accessed on October 14, Deloitte analysis based on exports data- merchandise trade matrix- product groups, exports in thousands of dollars, annual, , UNCTAD, wds/ TableViewer/tableView.aspx?ReportId=24739, accessed in November Deloitte analysis based on data from Deloitte Corporate Tax Rates 2015, August 2015, com/#domesticratessubmenu, accessed in February XVII: Deloitte analysis based on data from (except for India): Gross domestic spending on R&D, OECD, org/rd/gross-domestic-spending-on-r-d.htm, accessed in January Researchers per million: UNESCO, Science, technology, and innovation, Total R&D personnel (FTE) Total, data.uis.unesco.org/index. aspx?datasetcode=scn_ DS&popupcustomise=true&lang=en, accessed in January India: R&D expenditure (% of GDP), World Bank, worldbank.org/indicator/gb.xpd.rsdv.gd.zs, accessed in November XVIII: International Energy Statistics, US Energy Information Administration (EIA), / IEDIndex3. cfm?tid=50&pid=53&aid=1, accessed on February 29, XIX: Deloitte analysis based on data from: Electricity prices for industrial consumers in cents per kwh United States: Average Price of Electricity to Ultimate Customers by End-Use Sector, Electric power monthly, US EIA, May 2015, grapher.cfm?t=epmt_5_6_a, accessed in January Germany: International industrial energy prices, Department of Energy & Climate Change, United Kingdom, May 2015, uk/government/statistical-data-sets/ international-industrial-energy-prices, accessed in January Japan: International industrial energy prices, Department of Energy & Climate Change, United Kingdom, May 2015, accessed in January India: The working of state power utilities & electricity departments, Planning Commission, Government of India, February 2014, genrep/rep_arpower1305.pdf, accessed in January China: Xinhua Finance Agency, China to launch oil & gas reform, January 14, 2016, In_depth/2016/ shtml, accessed in January South Korea: Asian Power, South Korean industry braces for more expensive electricity, news/south- korean-industry-braces-more-expensiveelectricity#sthash.fue5oukp.dpuf, accessed in February Estimated landed LNG prices (in US dollars per million British thermal units) XX: United States: Landed prices at Lake Charles considered from World LNG estimated December 2015 landed prices, Federal Energy Regulatory Commission, accessed in December Germany: Landed prices at Belgium considered from World LNG estimated December 2015 landed prices, Federal Energy Regulatory Commission, accessed in December China, South Korea, Japan, and India: Landed prices in respective countries from World LNG estimated December 2015 landed prices, Federal Energy Regulatory Commission, accessed in December Deloitte analysis based on data from EIU, default.aspx, accessed in January XXI: Deloitte analysis based on: Healthcare expenditure as a % of GDP, 2013: Deloitte analysis based on data from health expenditure, total (% of GDP), World Bank, accessed in November Healthcare expenditure per capita by countries (US dollars), 2013: Deloitte analysis based on data from health expenditure per capita, PPP (constant 2011 international dollars), World Bank, accessed in November Percent of population with access to improved sanitation facilities, 2015: Deloitte analysis based on data from Improved sanitation facilities (% of population with access), World Bank, accessed in February Healthcare efficiency by countries, 2014: Deloitte analysis based on data from most efficient health care 2014: countries, Bloomberg, accessed in November XXII: Supplemental analysis: United States Competitiveness at a glance Manufacturing highlights The United States remains the most heavily invested-into country in the world: FDI Inward and outward fl ows and stock, annual, , UNCTAD, org/wds/tableviewer/tableview.aspx, accessed on February 03, The United States is the second largest producer of vehicles: 2014 production statistics, published by OICA, oica.net/category/production-statistics/2014-statistics/, accessed on February 03, The United States has the 5th largest proven natural gas reserves: BP Statistical Review of World Energy, published by BP PLC, June 2015, energy-economics/statistical-review-of-world-energy.html, accessed in January US share of the worlds total GDP: Gross domestic product Total and per capita, current and constant (2005) prices, annual, , UNCTAD, wds/tableviewer/tableview.aspx, accessed on February 03, Manufacturing employment in the US: Employment, Hours, and Earnings from the Current Employment Statistics survey (National), Bureau of Labor Statistics,

77 2016 ces/#data, accessed on February 03, The United States still is the worlds largest manufacturing economy: Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, at constant prices (2005) and constant exchange rates (2005) in millions, UNCTAD, unctad.org/wds/tableviewer/tableview.aspx, accessed on June Technological prowess and size The United States is the largest spender on basic research: anced Technologies Initiative, co-published by Deloitte and US Council on Competitiveness, content/dam/deloitte/us/documents/manufacturing/usindprod-deloitte-and-council-on- competitiveness-advancedtech-report.pdf, accessed in December The United States stood at the top in terms of patents filed: PCT applications for the top countries by region, World Intellectual PropertyOrganization, March 2015, wipo.int/ipstats/en/#publications, accessed in December The US remains the most heavily invested-into country in the world: FDI Inward and outward fl ows and stock, annual, , UNCTAD, TableViewer/tableView.aspx, accessed on February 03, The United States has superb innovation ecosystem: Advanced Technologies Initiative, co-published by Deloitte and US Council on Competitiveness, content/dam/deloitte/us/documents/manufacturing/usindprod-deloitte-and-council-on- competitiveness-advancedtech-report.pdf, December Research support for national laboratories and universities The United States has a robust system of research funding for national laboratories and universities: Advanced Technologies Initiative, co- published by Deloitte and US Council on Competitiveness, Deloitte/us/Documents/manufacturing/ us-indprod-deloitteand-council-on-competitiveness-advanced-tech-report.pdf, December DOE national labs, representing 17 facilities: 50 breakthroughs by Americas National Labs, published by US Department of Energy, 2011, in-focus/2011/50_breakthroughs, accessed in January High productivity The United States has the highest labor productivity in the world: Labor productivity, Key Indicators of the Labor Market 2015 KILM, International Labor Organization, org/global/statistics-and-databases/research-and-databases/ kilm/wcms_422456/lang-- en/index.htm, accessed on January 22, Policy actions The United States is celebrating the first Friday of October every year as National Manufacturing Day: Manufacturing day at a glance, published by National Center for Defense Manufacturing and Machining, June 11, 2014, org/2014/06/11/mfg-day-2014/, accessed in December In September 2013, President Obama launched the Advanced Manufacturing Partnership Steering Committee 2.0 as a continuation of Advanced Manufacturing Partnership that was started in 2011: President Obama Launches Advanced Manufacturing Partnership Steering Committee 2.0, published by the White House, September 26, 2013, president- obama-launches-advanced-manufacturing-partnership- steering-com, accessed in December High-cost labor: Manufacturing labor costs per hour, EIU, default.aspx, accessed on January 22, High corporate tax rates: Deloitte International Tax Source, Deloitte, deloitte.com/#domesticratessubmenu, accessed in January Increasing R&D investments outside of the United States, particularly in emerging nations: R&D National trends and international comparisons, Science and Engineering Indicators, published by National Science Board, 2014, chapter-4/c4h.htm, accessed in December R&D tax credit: Advanced Technologies Initiative, co-published by Deloitte and US Council on Competitiveness, com/content/dam/ Deloitte/us/Documents/manufacturing/usindprod-deloitte-and-council-on-competitiveness-advancedtech-report.pdf, December Shale gas availability Natural gas signals a manufacturing renaissance, New York Times, April 10, 2012, business/energy-environment/wider-availability-expandsuses-for-natural-gas.html?_r=0, accessed in December Reshoring: Reshoring, FDI Bringing Back Jobs Says Industry Group, IndustryWeek, April 28, 2015, expansion- management/reshoring-fdi-bringing-back-jobssays-industry-group, accessed in December XXIII: Supplemental analysis: China Competitiveness at a glance Manufacturing highlights China is the largest exporter and second largest importer in the world: Merchandise trade matrix by product groups, exports in thousands of dollars, annual, , UNCTAD, aspx?reportid=24739, accessed in August China became the largest manufacturing country: Gross domestic product GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, tableview.aspx?reportid=95, accessed in August China is the largest producer of motor vehicles: 2014 production statistics, published by OICA, category/production- statistics/2014-statistics/, accessed on February 03, Chinas one-third exports: Merchandise trade matrix by product groups, exports in thousands of dollars, annual, , UNCTAD, tableview.aspx?reportid=24739, accessed in August China is the worlds largest manufacturer of toy products, with a 70 percent share: Toy Manufacturing in China -Market Research Report, IBISWorld, October ibisworld.com/industry/china/toy-manufacturing.html, accessed in December Increasing R&D spend:

78 2016 Gross domestic spending on R&D: Research and Development, OECD, accessed on December Patent applications: PCT Yearly review, published by WIPO, accessed in August Growing middle class: Why Chinas Middle Class Cant Flex Its Buying Power, Bloomberg, February 10, 2015, news/articles/ /why-china-s-middle-class-can-t-findits-buying-power, accessed on January Physical infrastructure: Where is Chinas manufacturing industry going? China manufacturing competitiveness study 2011, Deloitte, November 2011, www2.deloitte.com/content/ dam/deloitte/global/documents/manufacturing/gx_ mfg_2011mfgreport_ pdf, accessed in December Can India really be the next China?, Economic Times, October 27, 2015http://economictimes.indiatimes.com/ news/economy/policy/can- india-really-be-the-next-china/ articleshow/ cms, accessed in December Innovation: Unlimited potential, GIPC International IP Index, GIPC, US Chamber of Commerce, wp-content/themes/gipc/map-index/assets/pdf/index_map_ Index_3rdEdition.pdf, accessed in February Slowing economic growth: Subdued Demand, Diminished Prospects, World Economic Outlook Update, IMF, weo/2016/update/01/, accessed in January Moderated to 6.9 percent in 2015: Chinas Economic Growth in 2015 Is Slowest in 25 Years, published by The Wall Street Journal, accessed on January 19, Regulatory inefficiency; WGI, published by World Bank, governance/wgi/index.aspx#home, accessed in December Rising labor costs: Manufacturing labor costs per hour, EIU, default.aspx, accessed on January 22, Moving from investment-led growth to consumption-driven growth: How China Can Create the $67 Trillion Consumer Economy, Bloomberg, July 23, 2015, articles/ /how-china-can-create-the-68-trillionconsumer, accessed in January Sold in China, Transitioning to a consumer-led economy, Demand Institute, July 2015, demandwp/wp-content/uploads/2015/07/sold-in-china.pdf, accessed in January Relaxing one-child policy: Chinese Families Can Now Have Two Children, But Can They Afford Them?, Bloomberg, October 30, 2015, bloomberg.com/news/articles/ /china-scrappingone-child-rule-too-little-too-late-for-growth, accessed in January New normal economic growth: Xi Says China Needs at Least 6.5% Growth in Next Five Years, by Bloomberg November 3, 2015, news/articles/ /xi-says-china-needs-no-less-than-6-5-growth-in-next-fi ve-years, accessed in January XXIV: Supplemental analysis: Germany Competitiveness at a glance Manufacturing highlights Population: Total and urban population, annual, , UNCTAD, tableview. aspx?reportid=97, accessed in October Germany is the third largest producers of cars production statistics, OICA, production-statistics/2014- statistics/, accessed on February 03, Significant exporter of cars: Industry overview, The Automotive industry in Germany, published by Germany Trade & Invest, , SharedDocs/Downloads/GTAI/Industry-overviews/industryoverview-automotive-industry-en. pdf?v=9, accessed in December Third-largest exporter of manufactured products after China and United States: Merchandise trade matrix by product groups, exports in thousands of dollars, annual, , UNCTAD, tableview.aspx?reportid=24739, accessed in August Germanys manufacturing sector accounted for 22.3 percent of its GDP in Gross domestic product GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, wds/tableviewer/tableview. aspx?reportid=95, accessed in August Germanys SMEs: More than 60% of the persons employed worked in SMEs, published by Statistisches Bundesamt, Wiesbaden, NationalEconomyEnvironment/EnterprisesCrafts/ SmallMediumSizedEnterprises/Current.html;jsessionid=F6F65 5FB11B8AF3BED63AAC9453B13B6.cae3, accessed in January Dominance in manufacturing mechatronics: Top 5 Manufacturing Economies: What Challenges Are They Facing?, published by Euromonitor International, September 18, 2014, manufacturing-economies-what-challenges-are-they-facing. html, accessed in August Machinery & Equipment Industry, Market leadership powered by German engineering, published by Germany Trade & Invest, gtai.de/gtai/navigation/en/invest/industries/ machinery-equipment.html, accessed in August Xi Says China Needs at Least 6.5% Growth in Next Five Years, Bloomberg, November 3, 2015, news/articles/ /xi-says-china-needs-no-less-than-6-5-growth-in-next-fi ve-years, accessed in January Automotive capabilities: Industry overview, The Automotive industry in Germany, Germany Trade & Invest, , Content/EN/Invest/_ SharedDocs/Downloads/GTAI/Industryoverviews/industry-overview-automotive-industry-en. pdf?v=9, accessed in January Innovation capability:

79 2016 Germany Just Got 78 Percent Of Its Electricity From Renewable Sources, Think Progress, July 29, 2015, org/climate/2015/07/29/ /germany-sets-newrenewable-energy-record/, accessed in August Growth of SMEs (Mittlestand) boosted manufacturing: More than 60% of the persons employed worked in SMEs, published by Statistisches Bundesamt, Wiesbaden, NationalEconomyEnvironment/EnterprisesCrafts/ SmallMediumSizedEnterprises/Current.html;jsessi onid=f6f6 55FB11B8AF3BED63AAC9453B13B6.cae3, accessed in January German Mittelstand: Engine of the German economy, published by Federal Ministry of Economics and Technology, =en,rwb=true.pdf, accessed in August Skilled labor: Why Germany Is So Much Better at Training Its Workers, Atlantic, October 16, 2014, business/archive/2014/10/why-germany-is-so-much-better-attraining-its-workers/381550/, accessed in August High quality infrastructure: 2015 World Competitiveness Yearbook, IMD, org/uupload/imd.website/wcc/overall_ranking_5_years.pdf, accessed in August Lack of venture capital: Most of the SMEs are dependent on bank financing: State Aid to Banks and Credit for SMEs Is there a need for Conditionality?, European Parliament, europa.eu/regdata/etudes/stud/2015/518754/ipol_ STU(2015)518754_EN.pdf, accessed in August VC investment as a percent of GDP: 2014 European Private Equity Activity, European Private Equity and Venture Capital Association (EVCA), media/385581/2014-european-private-equity-activity-final-v2. pdf, accessed in May High labor costs: Manufacturing labor costs per hour, EIU, default.aspx, accessed on January 22, Vulnerability of German banks to the euro area crisis: State Aid to Banks and Credit for SMEs Is there a need for Conditionality?, European Parliament, europa.eu/ RegData/etudes/STUD/2015/518754/IPOL_ STU(2015)518754_EN.pdf, accessed in August Aging workforce: Age invaders, The Economist, April 26, 2014, economist.com/news/briefing/ generation-oldpeople-about-change- global-economy-they-will-not-all-do-so, accessed in August Stable, but modest economic growth: Country forecast- Germany, EIU, aspx, accessed in July Energy transformation faces hurdles: Germany Just Got 78 Percent Of Its Electricity From Renewable Sources, Think Progress, July 29, 2015, org/climate/2015/07/29/ /germany-sets-newrenewable-energy-record/, accessed in August Eurozone political turbulence: Country forecast- Germany, EIU, aspx, accessed in July XXV: Supplemental analysis: Japan Competitiveness at a glance Manufacturing highlights Japans primary exports are consumer electronics, automobiles and semiconductors: Japan exports, Trading Economics, tradingeconomics.com/japan/ exports, accessed in August Manufactured goods account for 87 percent of Japans total exports: Merchandise trade matrix by product groups, exports in thousands of dollars, annual, , UNCTAD, aspx?reportid=24739, accessed in August Favorable policy actions to spur new industrial revolution: Japan revitalization strategy, Government of Japan, June 24, 2014, honbunen.pdf, accessed in August Japan Unleashes a Robot Revolution, Bloomberg, May 28, 2015, a-robot-revolution, accessed in August Incentives to advance core manufacturing technologies: Incentive programs, Investing in Japan, Japan External Trade Organization, programs/, accessed in August High corporate taxes a barrier to investment: FY 2015 Tax Reform, published by Ministry of Finance, Japan, January 2015, reform/, accessed in August Strong leadership, A balanced-budget, low-tax plan for jobs, growth and security, published by Minister of Finance, Canada, April 21, 2015, budget2015-eng.pdf, accessed in August Regional manufacturing competition intensifies: Country forecast- Japan, EIU, accessed in June Japan Unleashes a Robot Revolution, Bloomberg, May 28, 2015, a-robot-revolution, accessed in August Rapidly aging population: Japan Unleashes a Robot Revolution, Bloomberg, May 28, 2015, a-robot-revolution, accessed in August Japans vision to be robotics super-power- Indias role and benefi t, Financial Express, March 23, 2015, financialexpress.com/article/industry/japans-vision-tobe-robotics-super-power-indias-role-and-benefi t/56470/, accessed in August Restarting of nuclear energy facilities: Japan restarts first nuclear reactor since Fukushima disaster, Guardian, August 11, environment/2015/aug/11/japan-restarts-first-nuclear-reactorfukushima-disaster, accessed in August Investment in infrastructure:

80 2016 Japan to raise reconstruction spending by 6.5 trln yen, Reuters, June 16, 2015, idusb9n0q600c , accessed in August XXVI: Supplemental analysis: India Competitiveness at a glance Manufacturing highlights Indias manufacturing as percentage of GDP stood at 12.9 percent in in 2013: Gross domestic product GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, wds/tableviewer/tableview. aspx?reportid=95, accessed in August India contributed 2.1 percent to the global manufacturing output in 2013: Gross domestic product GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, wds/tableviewer/tableview. aspx?reportid=95, accessed in August Indias manufacturing output grew: GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, wds/tableviewer/tableview.aspx?reportid=95, accessed in August Skilled, low-cost labor force: Manufacturing labor costs per hour, EIU, default.aspx, accessed on January 22, Higher economic growth: Subdued Demand, Diminished Prospects, World Economic Outlook Update, IMF, weo/2016/update/01/, accessed in January Government support to boost manufacturing: Subdued Demand, Diminished Prospects, World Economic Outlook Update, IMF, weo/2016/update/01/, accessed in January Make in India: Make in India, accessed in November India has set an ambitious target: Manufacturing sector in India, published by India Brand Equity Foundation ( aspx), accessed in November High economic growth provides a vast domestic market for manufacturers: Foxconns second coming could spur a Make in India wave, Mint, June 24, HIb2cBjqROGTR6BwAtX5AP/Foxconns-second-coming-couldspur-a-Make-in-India-wave.html, accessed in June Poor infrastructure and governance issues: Logistics and transportation cost: Logistics Market in India , Novonous, india , accessed in June Delay in land acquisition holding up 270 projects- Nitin Gadkari, Economic Times, May 1, 2015, articles.economictimes.indiatimes. com/ / news/ _1_land-acquisition-national-highwaysprojects), accessed in June India has one of the most rigid labor markets: Moving toward greater labor market fl exibility: Indias uneven path, World Bank, EXTNWDR2013/rces/ / / /05a--Spotlight_5. pdf, accessed in June High non-performing assets (NPA) stalling credit growth: ICRA sees NPAs of Indian banks soaring to 5.9% this fiscal, VC Circle, June 8, 2015, finance/2015/06/08/ icra-sees-npas-indian-banks-soaring-59-fiscal, accessed in June Database on Indian economy, Reserve Bank of India, dbie.rbi.org.in/dbie/dbie.rbi?site=statistics, accessed in June Passage of GST bill: Why India Inc wants GST so badly FAQ, Moneycontrol, February 5, 2013, business/why-india-inc- wants-gst-so-badly-faq_ html, accessed in June Demographic dividend: India to Emerge As Winner from Asias Shrinking Labor Force, Bloomberg, November 9, 2015, news/ articles/ /india-to-emerge-as-winner-fromasia-s-shrinking-labor-force, accessed in December Modi Races to Avoid Billion-Person Demographic Mess in India, Bloomberg, July 9, 2015, articles/ /modi-wants-to-train-400-million-peopleto-avert-demographic-mess, accessed in December XXVII: Supplemental analysis: South Korea Competitiveness at a glance Manufacturing Highlights More than four-fi fths of South Koreas merchandise exports were from manufacturing industry with manufacturing exports forming 86 percent of merchandise exports in 2014: Merchandise trade matrix- product groups, exports in thousands of dollars, annual, , UNCTAD, aspx?reportid=24739, accessed in February South Korea is the global market share leader in the manufacturing of LCD (Liquid Crystal Display) TVs and memory chips, and second to China in the manufacture of smartphones China investing to become global leader, Asian Review, October 24, accessed in December S. Korean chip makers to confront the United States, Chinas rush with nanoscale memory chips, Pulse, October 29, 2015, no= , accessed in December Jaehwan Cho, China beats South Korea on smartphone market share, ZDNet, December 10, 2014, com/article/china-beats-south-korea-on-smartphone-marketshare/, accessed in December Philip Iglauer, Can South Korean smartphones beat back market squeeze?, ZDNet, August 6, 2015, zdnet.com/article/can-south-korean-smartphones-beat-backmarket-squeeze/, accessed in December The worlds largest shipbuilder home to the top four of the 10 biggest shipbuilding companies in the world South Korea ranks fi fth, globally, in automobile production in 2014.

81 2016 South Koreas stranglehold on the shipbuilding industry loosens, but only just, The Hankyoreh, co.kr/arti/english_edition/e_business/ html, accessed in February Stephen Evans, Heavy metal: Life at the worlds largest shipyard, BBC.com, May 30, 2015, world- asia , accessed in December Vehicle Production Forecast, IHS Automotive, ( automotive.ihs.com/), accessed in December South Korea delivers R&D intensive, high-tech finished products such as computers, televisions and mobile phones to end markets across the globe. High-technology exports comprised 58 percent of South Korean manufactured exports in 2014, according to United Nations data: UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , aspx?reportid=24739, accessed in January Competitive labor costs and high quality products relative to peers EIU, Average hourly compensation costs for all employees in manufacturing. Includes direct pay, bonuses, healthcare and other social benefi ts, and labour-related taxes and subsidies, accessed in June ILO, Table 16a. Labour productivity (ILO estimates and projections), kilm2015/kilm16.xlsx, accessed in February Jerry Hirsch, South Korean auto brands surpass Japanese in J.D. Power quality study, Los Angeles Times, June 17, 2015, latimes.com/business/autos/la-fi -hy-jd-powerquality-rankings story.html, accessed in December South Korean car makers score strongly in US quality study, Reuters News, June 17, 2015, reuters.com/article/2015/06/17/us- autos-usa-qualityiduskbn0ox28b , accessed in December Well-educated workforce OECD, Education at a Glance: OECD Indicators, 2014, accessed in February OECD, Research and development (R&D): Researchers Total, Per employed, , researchers. htm#indicator-chart, accessed in February Strong innovation: Bloomberg, The Bloomberg Innovation Index, accessed in February Growth in FTAs: Ministry of Foreign Affairs, Republic of Korea, FTA Status of ROK, fta/status/overview/index.jsp?menu=m_20_80_10, accessed in February Favorable policies to spur high-tech, manufacturing growth OECD (2014), Korea, OECD Science, Technology and Industry Outlook 2014, OECD Publishing, org/ /sti_outlook en, accessed in December Slowing global economy impacting growth prospects Lee Jong-Wha, How South Korea Can Maintain Its Strong Growth, Business Insider, January 28, 2015, businessinsider.com/how-south-korea-can-maintain-itsstrong-growth #ixzz3kv2yldnj, accessed in December UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , tableview.aspx?reportid=24739, accessed in January Bureaucratic complexities EIU, Country Commerce Report, South Korea, 2011, id= , accessed in December S.Korea aims to boost annual FDI pledges to $30 bln by 2017, Reuters, May 6, 2015, southkorea- economy-investment-idusl4n0xx1t , accessed in January Aging demographics Statistics Korea, Population ages 65 and above, go.kr/portal/english/news/1/23/2/index.board?bmode=read& bseq=&aseq=349205&pageno=1&rownum=10&navcount=10 &currpg=&starget=title&stxt=, accessed in December Jiyeun Lee, Korea Comes Full Circle in One Generation as Aging Crisis Looms, Bloomberg Business, August 17, 2015, bloomberg.com/news/articles/ /koreacomes-full-circle-in-one-generation-as-aging-crisis-looms, accessed in December Deloitte, Asia Pacific Economic Outlook, Q3 2015: South Korea, December 18, outlook-january-2016-southkorea/, accessed in January Weakening exports to drive measures to spur domestic side of economy Song Jung-a, Korean exporters rise on hopes of weak won, Asia-Pacific Equities, Economic Times, August 9, 2012, feab49a.html#axzz3zZ6KDREs, accessed in December Deloitte, Asia Pacific Economic Outlook, Q3 2015: South Korea, July 1, 2015, q south-korea/, accessed in December South Korea cuts key interest rate to record low of 1.75 pc, The Hindu, March 12, 2015, Economy/south-korea-cuts-key-interest-rate-to-record-low-of- 175-pc/article ece, accessed in December Investment opportunities from development of green technologies and renewable energy (RE) EIU, South Korea Energy, articleindustry.aspx?articleid= &country=sou th Korea&topic=Industry&subtop ic=energy, accessed in December Ian Clover, South Korea announces $1.94bn clean energy plan, PV Magazine, July 18, 2014, com/news/details/beitrag/south-korea-announces-194bnclean-energy-plan_ /#axzz3zz8rarue, accessed in December XXVIII: Supplemental analysis: Mexico Competitiveness at a glance Manufacturing Highlights Mexico is a major manufacturer of electronics and parts, machinery and appliances, aerospace crafts and parts, and plastics: Mexicos Manufacturing Sector Continues to Grow, Forbes, April 8, 2015,

82 2016 sites/stratfor/2015/04/08/mexicos- manufacturing-sectorcontinues-to-grow/#4ade8be33c9e, accessed in December Mexicos manufacturing exports formed three-fourths of total merchandise exports over the fi ve-year period : Merchandise trade matrix- product groups, exports in thousands of dollars, annual, , UNCTAD, unctadstat.unctad.org/wds/tableviewer/ tableview. aspx?reportid=24739, accessed in February Mexicos manufacturing GDP as percentage of total GDP peaked in 1988 at 22.4 percent. Since then, it is on a decline from 20 percent during the period to 17.4 percent in period: Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total, and shares, annual, , UNCTAD, unctadstat.unctad.org, accessed in February Mexico has emerged as a global automotive manufacturing powerhouse, as it is the seventh largest vehicle manufacturer and the sixth largest auto parts manufacturer. The country accounted for 3.7 percent share of the global vehicle production in The annual vehicle production volume increased by more than 10 percent between 2013 and 2014, that is, from 2.9 million in 2013 to 3.2 million in 2014: Vehicle Production Forecast, IHS Automotive, com/, accessed in December out of the top 100 automotive parts manufacturers have operations in Mexico: Mary Caton, Mexico poised to become a global automotive leader, Windsor Star, com/business/mexico-poised-to-become-a-globalautomotive-leader? lsa=274c-c379, accessed in December Competitive labor costs Peter Coy, Four Reasons Mexico Is Becoming a Global Manufacturing Power, Bloomberg Business, June 27, 2013, bloomberg.com/bw/articles/ /fourreasons-mexico-is-becoming-a-global-manufacturing-power, accessed in December TACNA, Why Manufacture in Mexico?, why-manufacture-in-mexico/, accessed in December Close proximity to US Douglas L. Donahue, Why Manufacturers Are Choosing Mexico Over and in Addition to China, Area Development, August 2012, BusinessGlobalization/August2012/why-manufacturers-arenearshoring-to-Mexico shtml?page=1, accessed in December TACNA, Why Manufacture in Mexico?, ( why-manufacture-in-mexico/), accessed in December Lower energy costs Peter Coy, Four Reasons Mexico Is Becoming a Global Manufacturing Power, Bloomberg Business, June 27, 2013, bloomberg.com/bw/articles/ /fourreasons-mexico-is-becoming-a-global-manufacturing-power, accessed in December Mamta Badkar, Evolving Global Economic Forces Are Turning Mexico Into An Increasingly Crucial Manufacturing Hub, Business Insider India, April 25, 2014, businessinsider.in/evolving-global-economic-forces-are- Turning-Mexico-Into-An-Increasingly-Crucial- Manufacturing- Hub/articleshow/ cms, accessed in December Presence of FTAs: Peter Coy, Four Reasons Mexico Is Becoming a Global Manufacturing Power, Bloomberg Business, June 27, 2013, articles/ /four-reasons-mexico-is-becoming-a-globalmanufacturing-power, accessed in December Low-skill workforce: OECD, Mexico, policy priorities to upgrade the skills and knowledge of mexicans for greater productivity and innovation, May org/mexico/mexico-policy-priorities-to-upgrade-skills-andknowledge-of-mexicans.pdf, accessed in December High productivity gap World Bank, GDP per person employed (constant 1990 PPP dollars), EM.KD, Accessed in December David Hendricks, Closing Mexicos productivity gap, San Antonio Express News, April 15, 2014, expressnews.com/business/ business_columnists/david_ hendricks/article/closing-mexico-s-productivity-gap php, accessed in December Lack of ecosystem and supplier base: Greg Keenan, Toyota moves Corolla to Mexico, highlighting high costs in Canada, The Globe And Mail, April 15, 2015, theglobeandmail.com/report-on-business/internationalbusiness/toyota-moves-corolla-to-mexico- highlighting-highcosts-in-canada/article /, accessed in December Structural reforms OECD, Mexico, policy priorities to upgrade the skills and knowledge of mexicans for greater productivity and innovation, May 2015, mexico-policy-priorities-to-upgrade-skills-and-knowledge-ofmexicans.pdf), accessed in December Timothy McCarthy, 5 Reasons to Invest in Mexico, US News & World Report, September 22, 2014, usnews.com/money/blogs/the-smarter-mutual-fundinvestor/2014/09/22/5-reasons-to-invest-in-mexico), accessed in December Sync between industrial clusters Timothy McCarthy, 5 Reasons to Invest in Mexico, US News & World Report, September 22, 2014, usnews.com/money/blogs/the-smarter-mutual-fundinvestor/2014/09/22/5-reasons-to-invest-in-mexico), accessed in December Automotive Suppliers Cluster in Central Mexicos Industrial Parks, Area Development, InternationalLocationReports/Advanced-Industries-2014/ Automotive-Suppliers-Central-Mexico-Industrial- Parks shtml, accessed in December Increased investment from the United States Timothy McCarthy, 5 Reasons to Invest in Mexico, US News & World Report, September 22, 2014, usnews.com/money/blogs/the-smarter-mutual-fundinvestor/2014/09/22/5-reasons-to-invest-in-mexico), accessed in December Andy Sharman, Jude Webber, Kana Inagaki, Ford investment highlights Mexicos booming carmaking sector, Financial Times, April 16, 2015, intl/cms/s/0/951ce8ca-e434-11e4-9e feab7de. html#axzz3z60rj9fo, accessed in December Bertha Edington, New GM Commitment Highlights US Benefi ts to Mexican Manufacturing, IVEMSA, ivemsa.com/new-gm- commitment-highlights-u-s-benefi ts-inmexican-manufacturing/, accessed in December 2015.

83 2016 XXIX: Supplemental analysis: United Kingdom Competitiveness at a glance Manufacturing Highlights The largest manufacturing sectors in the United Kingdom are food and drink, chemicals, rubber, plastics, and non-metallic minerals. Food and drink, accounted for 15 percent share of the total countrys manufacturing value added in 2014: The manufacturers organization, UK manufacturers provide a strong foundation for growth in the UK, uk/campaigning/campaigns-and-issues/ manufacturing-factsand-figures, accessed in December UKs contribution to global manufacturing output was 3.4 percent in 2005, which declined to 2.6 percent in 2013: UNCTAD, Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total, and shares, annual, , unctadstat.unctad. org, accessed in February UKs manufacturing exports accounted for 63% of the total merchandise exports over the fi ve-year period : UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , unctadstat.unctad.org/wds/tableviewer/ tableview.aspx?reportid=24739, accessed in January Hi-tech manufactured goods accounted for 43 percent of total manufacturing exports in 2014: UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , unctadstat.unctad.org/wds/ TableViewer/tableView. aspx?reportid=24739, accessed in January The United Kingdom produced 1.58 million vehicles in 2014, similar to what it produced in However, the vehicle production number increased at a CAGR of 8 percent during 2009 and 2014 period: Vehicle Production Forecast, IHS Automotive, ihs.com/, accessed in December Availability of high-skilled labor: Department for Business Innovation & Skills, Manufacturing in the UK: An economic analysis of the sector, Government of UK Website, December uploads/system/uploads/attachment_data/file/31785/ manufacturing-in-the- UK-an-economic-analysis-of-thesector.pdf, accessed in December Chris Rhodes, David Hough and Matthew Ward, The aerospace industry: statistics and policy, Parliament of UK Website, March, 2015, SN00928.pdf), accessed in December Deloitte and Council on Competitiveness, Advanced Technologies Initiative, dam/deloitte/tr/ Documents/manufacturing/deloitte-andcouncil-on-competitiveness-advanced-tech-report.pdf, STEM graduates: Graduates by field of education, Organisation for Economic Co-operation and Development, oecd.org/index. aspx?datasetcode=rgradsty#, accessed in February Superior innovation potential: The Global Innovation Index Report by WIPO, Cornell University and INSEAD, org/content/page/data- analysis, accessed in December Department for Business Innovation & Skills, Manufacturing in the UK: An economic analysis of the sector, Government of UK Website, December 2010, uploads/system/uploads/attachment_data/file/31785/ manufacturing-in-the- UK-an-economic-analysis-of-thesector.pdf, accessed in December Department for Business, Innovation & Skills, Baroness Neville-Rolfe DBE CMG and Intellectual Property Office, UK ranked as world- leader in innovation, Government of UK Website, September 17, 2015, government/news/uk-ranked-as-world- leader-in-innovation), accessed in December Declining labor productivity and manufacturing output Larry Elliott, UK productivity growth is weakest since second world war, says ONS, Guardian, April 1, 2015, theguardian. com/business/2015/apr/01/uk-productivitygrowth-is-weakest-since-wwii-says-ons, accessed in November EIU, Productivity of labor in manufacturing (value added per worker, US dollars), accessed in December Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, unctadstat.unctad.org, accessed in December High labor costs: EIU, Average hourly compensation costs for all employees in manufacturing. Includes direct pay, bonuses, healthcare and other social benefi ts, and labor-related taxes and subsidies, accessed in June Prevailing political risks: EIU, United Kingdom, com/default.aspx, accessed in December Rising currency appreciation risks: Phillip Inman, Weak growth in UK manufacturing poses Bank of England dilemma, Guardian, December 7, 2015, theguardian.com/business/2015/dec/07/ukmanufacturing-sector-growth-bank-of-england, accessed in December Margaret Canning and PA, Currency fears among factors that have left manufacturing in a brittle state, says industry spokesman, Belfast Telegraph, co.uk/business/news/currency-fears-among-factors-thathave-left-manufacturing-in-a-brittle- state-says-industryspokesman html), December 9, Re-shoring of production back to the country The Week, Re-shoring: companies bring production home from China, March 13, Angela Monaghan, Production returning to UK as cost advantage in China diminishes, Guardian, March 3, 2014, theguardian.com/business/2014/mar/03/ production-returning-uk-manufacturers-china, accessed in December Lee Hopley, Backing Britain. the reshoring story continues, The manufacturers organization, March 3, 2014, blogs/2014/mar/backing-britain--the-reshoring-storycontinues, accessed in December Pending decision on UKs membership of the EU: EIU, United Kingdom, accessed in December Political leadership expected to bring changes: EIU, United Kingdom, accessed in December 2015.

84 2016 XXX: Supplemental analysis: Taiwan Competitiveness at a glance Manufacturing Highlights Taiwan began as a manufacturing base for foreign semiconductor companies but has now evolved into a global development and manufacturing center: Foreignaffairs.com, Taiwan: Island of Innovation, legacy/attachments/fa- TAIWAN% SEP%2024-2sm.pdf, accessed in September Manufacturing accounted for 29.2 percent of Taiwans GDP in 2013: Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, unctadstat.unctad.org, accessed in February Taiwan has a large electronics industry that has been the primary exporter and driver of the countrys economy. Electronic products exports of US$95.6 billion accounted for 34.1 percent of total exports of US$280.5 billion in 2015: Ministry of Finance, R.O.C., Trade Figures for Dec. 2015, accessed in February Exports to Mainland China and Hong Kong comprised 39.0 percent of Taiwans exports in 2015: Ministry of Finance, R.O.C., Trade Figures for Dec. 2015, File/Attach/68570/File_6591.pdf, accessed in February Low Tax Burden Deloitte, Corporate Tax Rates 2015, August 2015, www2.deloitte.com/content/dam/deloitte/global/documents/ Tax/dttl-tax- corporate-tax-rates-2015.pdf, accessed in December EIU, Taiwan, &Country=Taiwan&topic=Regul, accessed in February Highly educated workforce: Ministry of Education, VI. Educational Expenditure, 1. Brief Introduction to Educational Expenditure, gov.tw/ct.asp?xitem=14504&ctnode=11430&mp=11, accessed in February World Economic Forum, The Global Competitiveness Report , report /competitiveness-rankings/, accessed in February Quality infrastructure: Ministry of Transportation and Communications (Taiwan), 2015, en/home.jsp?id=257&paren tpath=0,150,250, accessed in September Presence of Free Trade Zones: Ministry of Transportation and Communications, R.O.C., Ports and Harbors, gov.tw/en/home.jsp?id=257&parentpath=0,150,250, accessed in February High Economic Freedom: 2016 Index of Economic Freedom, Country Rankings, accessed in February Robust manufacturing clusters: World Economic Journal, Taiwan: Challenges and Opportunities, august 2014, world-economic. com/articles_wej-376.html, accessed in February Dependence on few major export markets: World Economic Journal, Taiwan: Challenges and Opportunities, august 2014, economic.com/articles_wej-376.html, accessed in February Shrinking population Taiwan to cope with shrinking workforce with deferred pension plans, Focus Taiwan, May 3, 2015, asoc/ aspx, accessed in December Taiwan workforce to begin shrinking next year: NDC, The China Post, February 26, 2015, business/2015/02/26/429681/taiwan-workforce.htm, accessed in December Shih Hsiu-chuan, Labor force to start shrinking next year: Mao, Taipei Times, February 27, 2015, com/news/front/archives/2015/02/27/ , accessed in December National Statistics, Republic of China (Taiwan), Table 14. Fertility rates for women of childbearing age, stat.gov.tw/public/data/dgbas03/bs2/yearbook_eng/y014.pdf, accessed in February Challenging IP regime: EIU, Taiwan Country Commerce, accessed in July Lack of natural resources: EIU, Taiwan Country Commerce, accessed in July Evolving cross-strait relations: Bilaterals.org, China-Taiwan, China-Taiwan-, accessed in February Mainland Affair Council, Republic of China (Taiwan), Economic Cooperation Framework Agreement (ECFA), gov.tw/public/data/ pdf, accessed in February Jenny W. Hsu, Thousands Protest Taiwans Trade Pact with China, Wall Street Journal, March 30, 2014, com/articles/sb , accessed in February Uncertainties on signing of new FTAs: Jenny W. Hsu, Thousands Protest Taiwans Trade Pact with China, Wall Street Journal, March 30, 2014, com/articles/sb , accessed in February Taiwan-EU trade deal set to go ahead pending talks, Taipei Times, October 16, 2015, biz/archives/2015/10/16/ ), accessed in February Bilaterals.org, US-Taiwan, Taiwan-, accessed in February ROC president calls for stronger ties with Indonesia: Kompas, Focus Taiwan, September 6, 2015, aipl/ aspx, accessed in February Anthony Fensom, Taiwan-Singapore FTA, Diplomat, November 8, accessed in February Kong See Hoh, China against Malaysia-Taiwan FTA, Sun Daily, August 21, 2014, news/ , accessed in February Rodel Alzona, Taiwan wants FTA with Philippines, Business Mirror, October 4, 2015, ph/taiwan-wants- fta-with-philippines/, accessed in February Paul Lin, TPP bid an opportunity to globalize the nation, Taipei Times, November 8, 2015, News/editorials/archives/2015/11/08/ , accessed in

85 2016 February XXXI: Supplemental analysis: Canada Competitiveness at a glance Manufacturing Highlights Canada has an established manufacturing industry and mainly exports motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment, and electronics: EIU, Country Report, Canada, asp?layout=country&geography_ id= , accessed in December Canadas total manufacturing sales rose 5.3 percent to US$619.1 billion in 2014, from US$587.9 billion in 2013, with 18 of 21 manufacturing sector industry groups posting higher year-over-year sales: Government of Canada, Statistics Canada, Manufacturing sales, by subsector, cst01/manuf11-eng.htm, accessed in February A key pillar of the economy, Canadas manufacturing industry contributed nearly 10.6 percent to the countrys GDP in 2013, and directly employed 1.7 million people: Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total and shares, annual, , UNCTAD, unctadstat.unctad.org, accessed in February Government of Canada, Statistics Canada, Employment by Industry, l01/cst01/econ40-eng.htm, accessed in February Canadian manufacturing industry relies heavily on resourcebased manufacturing: Chris Sorensen and Aaron Hutchins, How Canadas economy went from boom to recession so fast, Macleans, July 15, 2015, economy/economicanalysis/how- canadas-economy-wentfrom-boom-to-recession-so-fast/, accessed in December Canada is one of the few advanced net energy exporting countries. Net energy exports were US$85 billion in 2014, reaching levels last seen in 2008: Government of Canada, National Energy Board, Market Snapshot: Canadian 2014 Energy Export Revenues Reached a Record High of US$129 Billion, snpsht/2015/07-02xprtrvns-eng.html, accessed in February Efficient regulatory environment: 2016 Index of Economic Freedom, Canada, Regulatory Efficiency, org/index/country/canada, accessed in February High economic freedom 2016 Index of Economic Freedom, Canada, Open Markets, accessed in February Canada an attractive destination for manufacturing investment, according to site selection consultants, Ontario Canada, November 18, 2015, com/spotlights/canada-attractive-destination-manufacturinginvestment-according-site-selection, accessed in December Strong support for exports Government of Canada, Global Affairs Canada, Canadas Free Trade Agreements, trade-agreements- accords-commerciaux/agr-acc/fta-ale. aspx?lang=eng, accessed in February Government of Canada, Canadian Industry Statistics (CIS), Canadian Economy (NAICS 11-91): International Trade, html?code=11-91&lang=eng, accessed in February Government of Canada, Industry Canada, NAICS Automobile and Light-Duty Motor Vehicle Manufacturing, ca/app/scr/tdst/tdo/crtr.html?naarea=9999 &searchtype=bl&hselectedcodes= &productType=NA ICS&reportType=TE&timePeriod=5 Complete+Years&currency =PC&toFromCountry=CDN&countryList=specific&areaCodes= 9&grouped=GROUPED&runReport=true, accessed in February Reliable support for industry Government of Canada, FedDev Ontario, Advanced Manufacturing Fund Guidelines, gc.ca/eic/site/723.nsf/eng/01859.html, accessed in December Government of Canada, Innovation, Science and Economic Development Canada, Automotive Innovation Fund Program Details and Criteria, auto-auto.nsf/eng/am02258.html, accessed in December Government of Canada, Innovation, Science and Economic Development Canada, Strategic Aerospace and Defense Initiative (SADI) Program Guide, site/ito-oti.nsf/eng/h_00022.html, accessed in December Canadas National Economic Plan, National Shipbuilding Procurement Strategy, national- shipbuilding-procurement-strategy, accessed in December Abundant natural resources: Our Resources, New Frontiers: Overview of Competitiveness in Canadas Natural Resources Sector, August 2014, gc.ca/files/www/pdf/publications/emmc/ _our%20 Resources%20New%20 Frontiers_e.pdf, accessed in December Shortage of skilled labor: Canadian manufacturing today, Cautiously optimistic BDOs perspective on CMEs 2014 Management Issues Survey, Page 4, ca/_uploads/_media/51wjbzblm.pdf, accessed in December Declining oil prices and capital investments: Government of Canada, Recent trends in business investments, statcan.gc.ca/ pub/ x/ /part-partie3-eng.htm, accessed in February Free Trade Agreements: Government of Canada, Global Affairs Canada, Canadas Free Trade Agreements, international.gc.ca/ trade-agreements-accords-commerciaux/ agr-acc/fta-ale.aspx?lang=eng, accessed in February Elimination of tariffs and duties under Comprehensive Economic and Trade Agreement (CETA): The Conference Board of Canada, Elimination of Tariffs Under CETA to Add $1.4 Billion to Canadian Goods Exports to Europe by 2022, press/newsrelease/ / elimination_of_tariffs_under_ceta_to_add_1_4_billion_to_ canadian_goods_exports_to_europe_by_2022.aspx, accessed in February Government actions to remedy skilled labor issues Canadas Economic Action Plan, Training That Responds to Employer Needs, training-responds- employer-needs, accessed in February Canadas Economic Action Plan, Connecting Canadians with Available Jobs, available-jobs, accessed in February 2016.

86 Elizabeth Scott and Howard Wial, Multiplying Jobs: How Manufacturing Contributes to Employment Growth in Chicago and the Nation, University of Illinois at Chicago, May 2013, Page 9, cuppa. uic.edu/data/cued_manufacturing_jobs_may2013.pdf, accessed in January National Association of Manufacturers, Top 20 Facts about Manufacturing, Manufacturing/, accessed in February United Nations Conference on Trade and Development (UNCTAD), Gross domestic product: GDP by type of expenditure, VA by kind of economic activity, total, and shares, annual, , unctadstat. unctad.org, accessed in February Deloitte and Council on Competitiveness, Advanced Technologies Initiative, tr/ Documents/manufacturing/deloitte-and-council-oncompetitiveness-advanced-tech-report.pdf, 2015; Organization for Economic Co- operation and Development (OECD), OECD Science, Technology and Industry Outlook 2014, science/oecd-science- technology-and-industry-outlook htm, accessed in February Ibid. 6. Chris Rhodes, David Hough and Matthew Ward, The aerospace industry: statistics and policy, UK Parliament Website, March, accessed in February Christopher Alessi, Germany develops smart factories to keep an edge, MarketWatch, October 2015, com/story/germany-develops-smart-factories-to-keep-anedge , accessed in February Ibid. 9. Deloitte and Council on Competitiveness, Advanced Technologies Initiative, tr/ Documents/manufacturing/deloitte-and-council-oncompetitiveness-advanced-tech-report.pdf, Jon Gold, The 10 most powerful supercomputers on Earth, Network World, July 2015, com/article/ /data-center/the-10-most-powerfulsupercomputers-on-earth.html#slide11, accessed in February IMF, Subdued Demand, Diminished Prospects, World Economic Outlook Update, January weo/2016/update/01/, accessed in January National Bureau of Statistics of China, english/statisticaldata/annualdata/), accessed on February 19, Chinas Demand for Cars Has Slowed, Bloomberg, November 5, 2015, china-s- demand-for-cars-has-slowed), accessed in February Manufacturing, value added (% of GDP), World Bank ( worldbank.org/indicator/nv.ind.manf.zs); Services, etc., value added (% of GDP), World Bank ( NV.SRV.TETC.ZS), accessed on February 19, EIU, Manufacturing labor costs (US dollars per hour), eiu.com, accessed in February This Chinese Company Moved Production to South Carolina to Save Money, Wall Street Journal, February 17, 2016, wsj. com/economics/2016/02/17/this-chinese-company-movedproduction-to-south-carolina-to-save-money/, accessed in February 2016; A tightening grip, The Economist, March 14, 2015, strengthen-asias-hold-manufacturing-tighteninggrip, accessed in February Age composition and dependency ratio of population, National Bureau of Statistics of China ( statisticaldata/annualdata/), accessed on February 19, EIU, Share of Younger Population (15-39 years) in Total Population, Share of Older Population (65+ years) in Total Population, www. eiu.com, accessed in February OECD, Dataset: Graduates by field of education, Tertiary-type A and advanced research programmes (Field of education Science, Engineering, manufacturing and construction), org, accessed in July Chinese Families Can Now Have Two Children, But Can They Afford Them?, Bloomberg Business, October 2015, bloomberg. com/news/articles/ /china-scrapping-onechild-rule-too-little-too-late-for-growth, accessed in February EIU, Manufacturing labor costs per hour, accessed in January India Brand Equity Foundation, Manufacturing Sector in India, accessed in February UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , aspx?reportid=24739, accessed in January Peter Coy, Four Reasons Mexico Is Becoming a Global Manufacturing Power, Bloomberg Business, June 27, 2013, www. bloomberg.com/bw/articles/ /four-reasons-mexicois-becoming-a-global-manufacturing-power, accessed in February Tamar Jacoby, Why Germany Is So Much Better at Training Its Workers, The Atlantic, October 2014, business/archive/2014/10/why-germany-is-so-much-better-attraining-its-workers/381550/, accessed in February OECD, Dataset: Graduates by field of education, Tertiary-type A and advanced research programmes (Field of education Science, Engineering, manufacturing and construction), org, accessed in July European Commission, Autumn 2015 Economic Forecast: Moderate recovery despite challenges, November, 2015, rapid/press-release_ip _en.htm, accessed in February Ibid. 29. Deloitte, 2014 Global Survey of R&D Tax Incentives, March 2014, Page 9, Documents/Tax/dttl-tax-global-rd-survey-aug-2014.pdf, accessed in February Ye Xie, Goldmans BRIC Era Ends as Fund Folds After Years of Losses, Bloomberg Business, November 2015, bloomberg.com/news/articles/ /goldman-s-bric-era-endsas-fund-closes-after-years-of-losses, accessed in February 2016.

87 Economic Planning Unit, Prime Ministers Department, Energising Manufacturing Sector, Strategy%20Paper%2019.pdf, accessed in February India Brand Equity Foundation, Manufacturing Sector in India, accessed in February UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , aspx?reportid=24739, accessed in January Ibid. 35. Thailand Board of Investment North America, Competitive Workforce, php?id=4, accessed in February EIU, Manufacturing labor costs per hour, accessed in January Deloitte, Corporate Tax Rate 2015, August 2015, deloitte.com/content/dam/deloitte/global/documents/tax/dttl-taxcorporate-tax-rates-2015.pdf, accessed in February EIU, Manufacturing labor costs per hour, accessed in January Ibid. 40. EIU, Productivity of labour in manufacturing (value added per worker, US dollars), accessed in January Ibid. 42. HKTDC Research, Vietnam, an Alternative Production Base: 2015 Update, February 2015, business-news/article/research-articles/vietnam-an-alternative- Production-Base-2015-Update/rp/en/1/1X000000/1X0A159C.htm, accessed in February Tamar Jacoby, Why Germany Is So Much Better at Training Its Workers, The Atlantic, October 2014, business/archive/2014/10/why-germany-is-so-much-better-attraining-its-workers/381550/, accessed in February Ibid. 45. Natalie Obiko Pearson, Robot Invasion Undercuts Modis Quest to Put Indians to Work, Bloomberg Business, August 2015, www. bloomberg.com/news/articles/ /india-robotinvasion-undercuts-modi-s-quest-to-put-poor-to-work, accessed in February United Nations Development Programme, Human Development Reports, Mean years of schooling (of adults) (years), undp.org/en/content/mean-years-schooling-adults-years, accessed in January Deloitte and Manufacturing Institute, The skills gap in US Manufacturing 2015 and beyond, ( content/dam/ Deloitte/us/Documents/manufacturing/us-pip-themanufacturing-institute-and-deloitte-skills-gap-in-manufacturingstudy.pdf), accessed in February Manpower Group, 2015 Talent Shortage Survey, manpowergroup.com/wps/wcm/connect/408f7067-ba9c-4c98- b0ec- dca74403a802/2015_talent_shortage_survey-lo_res.pdf?mo D=AJPERES&ContentCache=NONE, accessed in February International Labor Organisation, Labor productivity, Key Indicators of the Labor Market 2015 KILM, en/index.htm), accessed in January 22, Ibid. 51. Ibid. 52. Ibid. 53. World Economic Forum (WEF), The Global Competitiveness Report , Competitiveness_Report_ pdf, accessed in January World Bank Group, Investing Across Borders, org/data/exploretopics/starting-a-foreign-business, accessed in January Deloitte and Council on Competitiveness, Advanced Technologies Initiative, tr/ Documents/manufacturing/deloitte-and-council-oncompetitiveness-advanced-tech-report.pdf, The Aspen Institute, The Manufacturing Resurgence: What it could mean for the US Economy, A Forecast for 2025, March Manufacturing_Resurgence.pdf, accessed in February Thomas J. Duesterberg and Donald A. Norman, Why is capital investment consistently weak in the 21st century US economy, ASPEN Institute and MAPI Foundation, April 2015, aspeninstitute.org/sites/default/files/content/upload/capital_ Investment_0.pdf, accessed in February Center for World University Rankings, Universities in top 1,000 global list, November 2015, accessed in January Luis Serven, Infrastructure and Growth, World Bank, June 2010, EXTRESEARCH/0,,c ontentmdk: ~pagepk: ~pipk: ~theSitePK:469382~isCURL:Y,00.html, accessed in February World Bank, Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high), World Development Indicators, LP.LPI.INFR.XQ, accessed on July 28, 2015; Internet users (per 100 people), World Development Indicators, indicator/it.net.user.p2, accessed on October 14, UNCTAD, Manufacturing exports Merchandise Trade matrix by product groups, exports in thousands of dollars, annual, , aspx?reportid=24739, accessed in January Ibid. 63. Ross DeVol and Perry Wong et.al., Jobs for America: Investments and policies for economic growth and competitiveness, Milken Institute, January 2010, publications/view/419, accessed in December Deloitte and Council on Competitiveness, Advanced Technologies Initiative, tr/ Documents/manufacturing/deloitte-and-council-oncompetitiveness-advanced-tech-report.pdf, World Intellectual Property Organization, Patent Cooperation Treaty Yearly Review 2015, 2015, wipo_pub_901_2015.pdf, accessed in December Deloitte and Council on Competitiveness, Advanced Technologies Initiative, tr/ Documents/manufacturing/deloitte-and-council-oncompetitiveness-advanced-tech-report.pdf, Ibid. 68. US Department of Energy, 50 Breakthroughs by Americas National Labs, 2015, accessed in February 2016.

88 OECD, R&D Tax incentive indicators, Direct government funding of business R&D and tax incentives for R&D, 2013, as a percentage of GDP, htm#design, accessed in February Bloomberg, The Bloomberg Innovation Index, bloomberg.com/graphics/2015-innovative-countries/, accessed in February Ari Phillips, Germany Just Got 78 Percent Of Its Electricity From Renewable Sources, Climate Progress, July 29, 2015, thinkprogress. org/climate/2015/07/29/ /germany-sets-newrenewable-energy-record/, accessed in February Michio Watanabe, Robotics rivalry in gear as Japan aims to lead fourth industrial revolution, Japan Times, October 6, 2015, www. japantimes.co.jp/news/2015/10/06/business/tech/roboticsrivalry-gear-japan-aims-lead-fourth-industrial-revolution/#.vrcxubqxcj, accessed in February Deloitte and Council on Competitiveness, Advanced Technologies Initiative, tr/ Documents/manufacturing/deloitte-and-council-oncompetitiveness-advanced-tech-report.pdf, accessed in December 2015; Premier emphasizes innovation in science and technology, The State Council, The Peoples Republic of China, August 2015, news/2015/08/13/ content_ htm), accessed in February Bloomberg, Chinese Families Can Now Have Two Children, But Can They Afford Them?, October 30, 2015, news/articles/ /china-scrapping-one-child-rule-too-littletoo-late-for-growth, accessed in February The White House, President Obama Launches Advanced Manufacturing Partnership Steering Committee 2.0, September 26, 2013, president-obama-launches-advanced-manufacturing-partnershipsteering-com, accessed in February Reuters, Trans-Pacific Partnership trade deal signed, but years of negotiations still to come, February 4, 2016http:// article/us-trade-tpp-iduskcn0vd08s, accessed in February Grant Smith, US Seen as Biggest Oil Producer After Overtaking Saudi, Bloomberg Business, July 4, 2014, com/news/articles/ /u-s-seen-as-biggest-oil-producerafter-overtaking-saudi), accessed in February Ari Phillips, Germany Just Got 78 Percent Of Its Electricity From Renewable Sources, Climate Progress, July 29, 2015, thinkprogress. org/climate/2015/07/29/ /germany-sets-newrenewable-energy-record/, accessed in February Ibid. 77. Ibid. 78. World Nuclear Association, Nuclear Power in Japan, December 2015, Japan/, accessed in February Catey Hill, 5 industries poised to profi t from low oil prices, MarketWatch, February 2015, story/5- industries-poised-to-profi t-from-low-oil-prices , accessed in December 2015; Rahul Oberoi, Oiling the Wheels, Business Today, February 2015, moneytoday/stocks/falling-oil-prices-will-bring-a-windfall-for-indiainc/story/ html, accessed in February The Economist, Whos afraid of cheap oil?, January 2016, be-shot-arm-economy-think-again-whos-afraid-cheap, accessed in January The World Bank, Fertility rate, total (births per woman), worldbank.org/indicator/sp.dyn.tfrt.in, accessed in February United Nations, World Urbanization Prospects, 2014 Revision, accessed in February Commonwealth Fund, US Health System Ranks Last Among Eleven Countries on Measures of Access, Equity, Quality, Efficiency, and Healthy Lives, June 2014, publications/press-releases/2014/jun/us-health-system-ranks-last, accessed in February World Bank, Worldwide Governance Indicators, worldbank.org/governance/wgi/index.aspx#reports, accessed in March Xie Tingting, China, on its way to innovation, The State Council, The Peoples Republic of China, May 2015, policies/policy_watch/2015/05/08/content_ htm,

89 2016

90 2016 Craig A. Giffi Vice Chairman and Automotive Industry Leader, Deloitte United States (Deloitte LLP) Michelle Drew Rodriguez Manufacturing Leader of the Center for Industry Insights, Deloitte United States (Deloitte Services LP) Bharath Gangula, Ph.D. Research Lead in Automotive and Manufacturing sectors within the Center for Industry Insights, Deloitte United States (Deloitte Services LP) Aleda V. Roth, Ph.D. Burlington Industries Distinguished Professor in Supply Chain Management at College of Engineering and Science, Clemson University Tim Hanley Global Leader, Consumer & Industrial Product, Deloitte Deborah L. Wince-Smith President and CEO of the US Council on Competitiveness Ryan Robinson, P&IP Research Lead, Center for Industry Insights, Deloitte Canada Gina Pingitore, Director, Center for Industry Insights, Deloitte United States Mimi Lee, Director, Global Consumer & Industrial Products, Deloitte Touche Tohmatsu Limited Srinivasa Reddy Tummalapalli, Assistant Manager, Center for Industry Insights, Deloitte United States India Ankit Mittal, Analyst, Center for Industry Insights, Deloitte United States India Sandeepan Mondal, Senior Analyst, Center for Industry Insights, Deloitte United States India Trina Huelsman (Vice Chairman and Industrial Products & Services Sector Leader, Deloitte United States, Deloitte & Touche LLP), Robert Libbey(Manager, Deloitte United States, Deloitte Services LP), Herb Williams-Dalgart (Senior Manager, Deloitte United States, Deloitte Services LP), René Stranghoner(Sector Marketing Leader, Industrial Products & Services Sector, Deloitte United States, Deloitte Services LP), Kristen Tatro (Marketing Manager, Deloitte Global,Deloitte Touche Tohmatsu Limited), and Whitney Garcia (Campaign Manager, Deloitte United States, Deloitte Services LP)

91 Deloitte Tom Captain Joe Vitale Duane Dickson John Dixon Nick Sowar Tim Hanley Jack Ringquist Seema Pajula Jose Othon Tavares de Al Stephen Brown Patricia Zuanic Claudio Giaimo (LATCO) Manuel Nieblas Koji Miwa David Boyd Eric Desomer Aaron Martin Egor Metelkin (CIS) Jesper Svend Povlsen Markku Aro Jean-Marc Liduena Thomas Doebler Stylianos Kyriakides Rich Penkoski Dan Haynes Kimberly Porter Rod Sides Karen Bowman Vicky Eng John Hung David Hearn Kumar Kandaswami Eli Tidhar Dean Ellwood Dario Righetti Eugene Ho Herve Ballantyne Jun Cheol Kim Sandra Heuts Jun Kung Kjetil Nevstad Luís Miguel Belo Karthi Pillay Ralf Schlaepfer Ozgur Yalta Nigel Wixcey

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93 Notes

94 Center for Industry Insights Consumer Business Manufacturing The Deloitte Center for Industry Insights The Deloitte Center for Industry Insights in the United States leads Deloittes extensive industry research that informs stakeholders across the manufacturing ecosystem of critical business issues including emerging trends, challenges, and opportunities. Using primary research and rigorous analysis, the Center provides unique perspectives and seeks to be a trusted source for relevant, timely, and reliable insights. To learn more, visit About the Council on Competitiveness Founded in 1986, the Council on Competitiveness is a non-partisan leadership organization of corporate CEOs, university presidents, labor leaders and national laboratory directors committed to advancing U.S. competitiveness in the global economy and a rising standard of living for all Americans. Dedicated to building U.S. prosperity, the Council plays a powerful role in shaping Americas future by setting an action agenda to assess U.S. competitiveness, identify emerging forces transforming the economy, catalyze thought leaders who drive change and galvanize stakeholders to act. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloittes more than 225,000 professionals are committed to making an impact that matters. Deloitte serves 4 out of 5 Fortune Global 500 companies. About this publication This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication For information, contact Deloitte Touche Tohmatsu Limited. Designed and produced by The Creative Studio at Deloitte, London. J5074

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