Manufacturing sector adds value to economic growth, creates jobs: World Economic Forum

NEW YORK: The manufacturing sector has a fundamental role to play in global economic growth which includes job creation for emerging economies and developed markets, a report by the World Economic Forum says.

According to the report by WEF and Deloitte Touche Tohmatsu, the manufacturing sector not only adds value to the overall economic growth but also helps in creating more jobs than any other sector.

"Manufacturing adds value, creating more jobs than any other sector, driving innovation throughout every segment of our society and delivering consumer solutions - all of which are the keys to long-term, sustainable economic growth," said Andrew Liveris, the Global CEO Champion of the World Economic Forum's Manufacturing for Growth project.

Some of the key drivers behind a successful advanced manufacturing strategy include a competitive tax system, free and fair trade, education and talent development, energy efficiency, and technology and innovation.

"Countries are now thinking more strategically about how to develop an integrated portfolio of public policies that enhance the overall innovation capability of the nation to design, develop and manufacture a wide variety of sophisticated products. That is, how to foster an advanced manufacturing ecosystem," John Moavenzadeh, Senior Director and Head of the WEF's Mobility Industries Team said.

"It further shows that innovation of manufactured products and manufacturing processes are among the most critical drivers of economic growth and prosperity," Deloitte Vice-Chairman and Consumer and Industrial Products Industry Leader Craig Giffi said.

The report showcases examples of leading public-private partnership organisations established to foster collaboration to drive the talent and innovation agendas for manufacturing sector.

It referred to Germany's Fraunhofer Institute, the United States' Manufacturing Institute and Japan's Innovative Network Corporation as examples in this regard.