Monday, December 17, 2012

17/12/2012: Don't write manufacturing off - part 2


In the previous post I reproduced the summary chart from McKinsey research paper on the future of manufacturing (linked in the post). Here is a more detailed version of the same:


Again, few points worth raising in Ireland's development context: given our openness to trade and limited domestic markets, as well as strong access to global labour markets, we should be prioritizing development that focuses on:

  1. Trade intensity (with intensities at around and above 50%)
  2. Value intensity (with intensities at around and above 30%)
  3. R&D intensity (with intensities at least in double digits)
  4. Labor intensity (with intensities at least in double digits)
From the above 4 criteria, equally weighted, our priorities (scores in brackets reflect sum of values across the above 4 criteria), we have:
  • Computers and office machinery (155)
  • Semiconductors and electronics (132)
  • Medical, precision, and optical (123)
  • Furniture, jewelry, toys, other (105)
  • Other transport equipment (94)
  • Textiles, apparel, leather (92)
  • Machinery, equipment, appliances (82)
  • Chemical (80)
  • Motor vehicles and parts (77)
  • Electrical Machinery (76)
Interesting view?
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