PBI has drawn on sister company WealthInsight’s research to analyse a specific industry that plays a major part in driving High Net Worth (HNW) wealth creation. This month, PBI looked at the manufacturing sectors in China, India, Japan, Germany and Italy.

Manufacturing has not traditionally been a huge contributor to economic growth, but in recent years it has played a critical part in positively affecting a country’s economic climate. A competitive manufacturing sector is now seen as a crucial contributor to a country’s long-term prosperity – through the creation of new skilled jobs and significant revenues from exports and investments.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

However, the manufacturing industry is in a state of transition. The emerging economies are growing and creating more competition among countries, while the developed economies are still recovering from the financial crisis, in varied measures.

The lower wage dominated countries tend to compete on costs, while the established players differentiate themselves on the basis of technology and innovation, particularly with high value-added products in industries such as aerospace and pharmaceuticals.

There are also some troubles ahead. According to the Chartered Institute of Purchasing and Supply, UK manufacturing is at its lowest activity in fourteen months. In addition, the EEF, the manufacturing association, found that export orders turned out in the negative for the first time since the beginning of 2013, and demand scenario was now increasingly uncertain.

This slowdown is not limited to the UK as China’s Purchasing Managers Index fell to 51.1 after a 27-month high of 51.7 in July 2014.
Predictions show that China might become the leading country for manufacturing by 2020, thanks to its fast growing economy and low labour costs. Reports by global wealth consultancy, WealthInsight, have shown that the highest wealth generated from the manufacturing industry is in China.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Germany remains on top when it comes to the number of UHNWIs generated by the manufacturing sector, according to WealthInsight. Despite manufacturing presently being one of the leading contributors to the national wealth in most economies, it produces relatively fewer HNWIs.

 

Key Geographies

Countries with cheap labour costs, high- skilled workers, advanced technology and good infrastructures are a hub for investors in the manufacturing sector.

China, known as a ‘global factory’, currently has the largest percentage of HNWIs in the manufacturing industry. According to WealthInsight, 13.5% of the wealthy population are employed in that area, a 105% increase between 2008 and 2012.
The story is similar with UHNWIs – 13.6% of them create their wealth in this industry. Moreover, Jianlin Wang, residing in China, is the sixth richest person in this sector worldwide.

China’s Wealthiest in Manufacturing
Name Wealth (US$bn) Industry City of Residence
Mr. Jianlin Wang 14.22 Hotels, Restaurants & Leisure,
Manufacturing, Media, Real Estate		 Dujiangyan
Mr. Zhidong Zhang 7.94 Manufacturing,
Tech & Telecommunications		 Shenzhen
Mr. Jian Jun Wei 7.68 Manufacturing Baoding

 

Germany, often recognised as one of the top manufacturing countries in the world, has suffered due to the recent slowdown across the Euro zone. However, its numbers remain strong. Susanne Quandt Klatten, residing in Germany, is the second richest individual involved in this area. Moreover, four of the top ten richest people in the sector are located in Germany according to WealthInsight. In 2013, 13.4% of HNWIs were involved in the manufacturing sector, 4.9% more than in 2009.

Germany’s Wealthiest in Manufacturing
Name Wealth (US$bn) Industry City of Residence
Ms. Susanne Quandt Klatten 18.69 Energy & Utilities, Financial Services & Investments,
Manufacturing		 Bad Homburg
Mr. Stefan Quandt 16.56 Manufacturing Frankfurt
Ms. Johanna Quandt 13.23 Manufacturing Bad Homburg

 

India‘s manufacturing sector is heavily predicted to become a titan in the global industry, with management consulting firm McKinsey & Company forecasting its worth to reach $1 trillion by 2025. It was also ranked as the fourth most competitive manufacturing nation in Deloitte’s global index in 2013.

Approximately, 12.3% of Indian HNWIs and 11.4% of Indian UHNWIs create their wealth in this industry. One of the world’s richest people is involved in the manufacturing industry – Mukesh Dhirubhai Ambani.

India’s Wealthiest in Manufacturing
Name Wealth (US$bn) Industry City of Residence
Mr. Mukesh Dhirubhai Ambani 23.87 Energy & Utilities, Manufacturing, Tech & Telecommunications Mumbai
Mr. Srichand Parmanand Hinduja 4.92 Energy & Utilities, Financial Services & Investments,
Healthcare, Manufacturing, Real Estate, Tech & Telecommunications		 London
Mr. Jamshyd Naoroji Godrej 2.95 Basic Materials, Manufacturing, Real Estate Mumbai

Japan has several crucial manufacturing exports, including automobiles, consumer electronics, copper, iron and steel. However, the manufacturing sector is heavily dependent on imported raw materials and fuels. 10.1% of the HNW population and 10% of the UHNW population of Japan are involved in manufacturing. Between 2009 and 2013, the number of HNWIs in this sector increased by 25.3%.

Japan’s Wealthiest in Manufacturing
Name Wealth (US$bn) Industry City of Residence
Mr. Kunio Busujima 4.94 Manufacturing Gunma
Mr. Takemitsu Takizaki 4.66 Manufacturing Osaka
Mr. Kazuo Okada 1.54 Hotels, Restaurants & Leisure,
Manufacturing		 Hong Kong

 

Between 2008 and 2012, Italy‘s manufacturing industry experienced a sharp increase of 105% in wealthy individuals working in that particular sector. In 2012, 9.2% of all HNWIs and UHNWIs were involved in manufacturing, with Paolo Rocca taking the number eight richest spot.

Italy’s Wealthiest in Manufacturing
Name Wealth (US$bn) Industry City of Residence
Mr. Paolo Roberto Rocca 11.07 Manufacturing Buenos Aires
Mr. John Philip Jacob Elkann 2.7 Manufacturing Turin
Dr. Giuseppe De’Longhi 2.12 Manufacturing Treviso