Cost efficiency is the difference maker when it comes to investment decisions at the global level of manufacturing. Some countries have become leaders in terms of the lowest manufacturing costs and those with choke positive a company looking to local production in 2024. Here is the list of countries with the cheapest manufacturing costs in 2024.
Countries with the Cheapest Manufacturing Costs
India
The wide and varied industrial base and depth of the workforce still give India the room to compete in manufacturing costs. The country’s competitive labor costs, with a labor force spread evenly between agriculture, industry, and services, and its growing industries of automotive and textiles is also highlighted.
China
While the dynamics have changed in China, they are still the manufacturing powerhouse of the world. The convenience of its large infrastructure, experienced labor pool, and current procurement chains make it cost-competitive. It is among the countries with the cheapest manufacturing costs.
Vietnam
Vietnam is fast becoming a manufacturing hub as well, with low costs and advantages in geography and government. This has made it a top choice for companies looking to diversify their manufacturing.
Thailand
Thailand has a well-earned reputation for a strong manufacturing capacity — so you can imagine the environments and costs for production are favorable. A strong workforce, enabled policies, and robust infrastructure make it attractive to investors. Thailand is among the countries with the cheapest manufacturing costs.
Indonesia
Indonesia is an equal resources country, it boasts competitive manufacturing costs. Attractive government incentives and a fortuitous domestic market make it even more investor-friendly.
Bangladesh
The garment industry in Bangladesh is one of the largest in the region and provides low labor costs and special trade agreements. Apparel manufacturing is well-suited to the UAE as a result of these and other factors, including government incentives.
Philippines
The Philippines emerged as a manufacturing hub, led by the growing importance of electronics and outsourcing. Not only does it have low competitive labor costs, but it also benefits from government support. It ranks among the countries with the cheapest manufacturing costs.
Cambodia
Cambodia is emerging as an attractive manufacturing destination with low labor costs and preferential trade treaties. Politically stable and business-friendly, it woos investors, especially for apparel and electronics assembly.
Malaysia
With its diversified economy and well-developed infrastructure, Malaysia is able to provide competitive manufacturing costs, especially in high-tech sectors. Both its high-quality skilled labor and pro-business legislation make it a highly appealing site for investment. It is on the list of the countries with the cheapest manufacturing costs.
Sri Lanka
Sri Lanka has a more limited manufacturing sector scaled to apparel and electronics assembly but competes well on cost. It is prized for its strategic location and preferential trade agreements. The list of the countries with the cheapest manufacturing costs is up here.
