The production of machines, tools and equipment is a stalwart activity of the manufacturing industry and a bellwether for economic conditions in general. Hanoi and Mumbai, the two cities which ranked highest overall on both quality and cost for the manufacture of machines, tools and equipment – based on the fDi Benchmark tool – have experienced tremendous economic growth rates in recent years.
These booming cities are riding the economic downturn with a strong manufacturing base which continues to pull in foreign investment from companies ready to take advantage of lower-cost manufacturing. However, Mumbai also ranked number one globally in fDi’s quality ranking, proving that cost arbitrage does not have to mean a compromise on quality.
In more mature economies, established economic centres featured strongly in the rankings for the best manufacturing locations for machines, tools and equipment. In Europe, Oslo topped the rankings. And in the Americas, although Salvador ranked number one, the traditional locations of New York, Chicago and Houston came in at second, third and fourth place, respectively.