As per the latest U.S. News and the World Reports that are being published, it was noted that the costs of manufacturing a particular product in a specific country may prove to be much more affordable when compared to other countries. As the cost of production is higher mostly in the Western Countries, the MNCs and other technology/industry giants are looking towards other countries where the manufacturing costs would be low.
If a particular company chooses to manufacture products in a country with minimal costing, then it is more likely to increase its profit margins or reduce the prices that it charges from the consumers. These factors tend to help the organisation in becoming more competitive in the industry of focus and offer improved products or services in the future.
Let’s have a quick look at the countries that offer the lowest manufacturing costs in ascending order:
- India
- China
- Vietnam
- Thailand
- Philippines
- Bangladesh
- Indonesia
- Cambodia
- Malaysia
- Sri Lanka
Asian Countries have always topped the list of the most affordable costing. In this new index, India has been ranked as the cheapest country in which manufacturing can be done by a business. It is for the company to manage the quality of the products or the raw materials, but the manufacturing costs can be easily controlled by a company if they hire the right labour and the ideal infrastructure in countries like India to do the final working and assembly.
There are several factors that make India the most affordable followed by China and Vietnam. The ease of working in a particular country, the regulations of the particular government, the costs of labour, the infrastructural development and the overall skills of the people are some of the leading factors that help in coming down to a final decision. The above list was formulated after careful consideration of these factors and how easy it may be to do manufacturing in that particular country when compared to the other options that are available.