Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains

The report argues that manufacturers are shifting from a cost-centric location strategy to a holistic approach prioritizing performance, resilience, and sustainability. It identifies seven key readiness factors—infrastructure, resources and energy, technology, labour and skills, fiscal and regulatory policies, geopolitical landscape, and ESG—that determine a country's attractiveness for foreign investment. The document categorizes countries into four archetypes (Adapter, Converger, Connector, Scaler) based on GDP per capita and manufacturing's contribution to GDP, noting that 'Connectors' have seen the highest increase in investment confidence over the last decade.

• Manufacturers are increasingly prioritizing regionalization and diversifying their sourcing, with over 90% of leaders prioritizing regionalization and nearly two-thirds adopting a "power-of-two" approach to ensure direct spending is sourced from two separate regions.
• The report defines four country archetypes based on GDP per capita and the manufacturing sector's contribution to GDP: Adapters (low GDP per capita, limited manufacturing contribution), Convergers (high GDP per capita, limited manufacturing contribution), Connectors (low GDP per capita, strong manufacturing contribution), and Scalers (high GDP per capita, strong manufacturing contribution).
• Foreign direct investment (FDI) confidence has shifted over the last decade, with 'Connectors' seeing a 14% improvement in attractiveness, while 'Adapters' experienced a 15% decline.
• Infrastructure readiness is now measured by both physical assets (transport, utilities) and intelligent infrastructure (high-speed internet, AI, cybersecurity). Denmark, the Netherlands, and Singapore are the top three performing markets in this category.
• Technology readiness is a key differentiator for global competitiveness, with the US, Switzerland, and Singapore identified as the top three markets for innovation systems and cybersecurity capability.
• The focus on labour is shifting from 'best-cost' to the availability of high-skilled workers, particularly in STEM and digital technologies. Australia, Ireland, and Saudi Arabia are the top three markets for the availability of technologically skilled workers and STEM graduates.
• Fiscal and regulatory stability is critical amid rising protectionism. Singapore, Switzerland, and Qatar are the top three markets for ease of business and regulatory quality.
• Geopolitical neutrality can be a strategic advantage; countries that maintain an 'agnostic or equidistant stance' between the US and China, such as Mexico and Vietnam, may better serve diverse markets.
• ESG performance is becoming a primary factor for companies committing to carbon neutrality. Norway, Denmark, and Sweden are the top three markets for sustainability competitiveness and renewable energy production.

APA

World Economic Forum (2024). Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains. https://reports.weforum.org/docs/WEF_Beyond_Cost_2024.pdf

Chicago

World Economic Forum. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains. 2024. https://reports.weforum.org/docs/WEF_Beyond_Cost_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains |date=December 2024 |url=https://reports.weforum.org/docs/WEF_Beyond_Cost_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024beyond, author = {{World Economic Forum}}, title = {{Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains}}, institution = {World Economic Forum}, year = {2024}, month = dec, url = {https://reports.weforum.org/docs/WEF_Beyond_Cost_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }