How trade war can change supply chains in advanced manufacturing ? Industrial Robots installations by region

[Marcin + 519]

Installations of industrial robots are good indicator of trends in advanced manufacturing development.

The largest cluster of supply chains in advanced manufacturing is located in Asia and more precisely in the East Asia region in 3 countries:

China, Japan, South Korea

These 3 countries installed 251,000 out of 422,000 of industrial robots in 2018, that is 59.5% of global installations.

United States installed 40,000 units: 9.5%

Germany 27,000 robots: 6.4%

By region: Asia 67%, Europe 18.% and North America 13.0%.

These advanced manufacturing is working for 7.5 billion of global consumers.

United States is .3 billion consumers 4% but constituting 23% of global GDP.

Never the less the rest of the world is 77% of global GDP and this share is rising by 1.5% every year,

because global GDP growth is about 4%, whereas US growth is 2%.

So chances of changing supply chains due to trade or technology war are minimal, what is more probable isolated supply chains of more expensive goods will be developed exclusively for US consumer market and for components for US industry. These in turn will further decrease competitiveness of US industry vs rest of the world

 

Edited December 1, 2019 by Marcin
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