United States: Innovation-Driven Manufacturing
The United States is in second place with about $3 trillion in manufacturing output every year. The aerospace industry is one of America’s strongest industries including Boeing, Lockheed Martin, and SpaceX. Also, pharmaceuticals and biotechnology are in the forefront with U.S.-based firms leading the global drive for new drugs, vaccine manufacturing, and advanced medical devices.
“America invented these chips,” U.S. Former President Joe Biden said in prepared remarks this week at Intel’s subsidy announcement in Arizona. “Even though we invented the most advanced chips, we make zero percent of them today. Nearly all manufacturing of leading-edge chips across the entire industry moved overseas to Asia years ago.”
Electronics and semiconductors represent one of the strongholds, with Silicon Valley excelling in advanced technologies such as microchips, AI hardware, and predicted future computing products. Automobiles, chemicals, and petroleum products close out the U.S. inventory, making it one of the most diversified manufacturing economies in the world.
“I think the economics of it are we have to consider the resiliency of the supply chain, I think we learned that during the pandemic — the idea that you think about your supply chains not just by the lowest cost, but also about reliability, about resiliency, and all those things. I think that’s how we’re thinking about U.S. manufacturing,” said Lia Su, CEO, Advanced Micro Devices (AMD).
Japan: Precision and Technology
Japan has a long history of manufacturing excellence, with an emphasis on precision, reliability, and innovation. The country produces in excess of $860 billion in manufacturing products every year and is a leader in advanced technologies and industrial products. Robotics and automation represents another area of Japanese dominance. From industrial robots to consumer-facing innovations, Japan has set global benchmarks in efficiency and quality.
“These nations focus on replicability and mass-production, while we focus on customization,” said Yoshiharu Katsuta, President of consumer electronics firm, Maxell. “Most technologies developed by neighboring Asian countries have already been made by Western firms, so their success resides in lessening the cost of operations. However, when it comes to constructing electronic components and structural part, the Japanese spirit of monozukuri has a great competitive advantage.”