In this article we are going to list the 15 biggest manufacturing companies in the world. Click to skip ahead and jump to the 5 biggest manufacturing companies in the world. The manufacturing sector is perhaps the single most important sector in the world, and contributes around 16% to the global GDP. It includes many major industries and is responsible for the provision of most of the luxuries we are used to in our lives. In fact, you can say that if it wasn’t for the manufacturing industry and its constant innovation, growth and improvements, we wouldn’t be enjoying the standards of living that we are today.
You can see the strength and importance of the manufacturing sector if you just take a look at the importance governments places on the sector and how policies are devised to encourage the sector and the industries within. Economies of most countries, and especially of developing economies are vastly dependent on manufacturing, which tends to have some of the biggest companies. Among the many initiatives that countries take to encourage manufacturing include Made in India and Made in China 2025, where the countries encourage local manufacturing to transform the economy and raise the strength and stature of the country.
The Made in India initiative came into being in 2015 and the reason behind the idea was to reduce the dependency of the biggest democracy in the world on imports and instead, producing goods in their own country. The initiative has had a significant impact already on Foreign Direct Investment, which was worth $286 billion from 2014 to 2019. This means that it comprises nearly 47% of the overall FDI India has received since 2000.
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As the world has progressed and developed, reliance has also started to grown on the service sector rather than the manufacturing sector. This has led to an imbalance and this is especially true for more developed economies in the West. This is why now many policy makers are leading the argument that a rebalance is required especially since manufacturing is seen as being able to provide greater as well as more sustainable growth. However, the manufacturing sector does have several issues which include currency volatility, trade wars between the two superpowers in the world in China and the US, a lending shortage, downward pressure on price and sustainability of supply chains, which has been further devastated by the Covid-19 pandemic, which I’ll get to later on. But perhaps the biggest issue the West faces is that developed economies have a lot more rules, regulations and most important of all, taxes. This why some of the biggest companies in the world would much rather have their manufacturing units in the East, with China and India being preferred destinations as labor is cheap, taxes are avoided and lax rules and regulations mean that these companies can get away with a lot more.
Manufacturing in the emerging markets has focused more on high volumes and lower prices, which is why the top three countries in the Global Competitiveness Index are all Asian, while the G7 countries have continued falling down the list. And since technology is the most important tool anyone can have in this time and age, innovation and the use of this technology is what separates the biggest manufacturing companies in the world from the rest of the competition.
However, the manufacturing industry did take a massive hit when the Covid-19 pandemic hit. The global supply chain was devastated as I mentioned earlier, and global lockdowns were imposed which led to manufacturing sites across the world being closed, apart from those required for essential activities. While manufacturing resumed once the lockdown ended, now that the second wave has been gripping the world once more, lockdowns are again being imposed and uncertainty is reigning supreme. The fact is, we will only know the proper impact on the manufacturing sector some time in 2021, and hope that normality resumes soon now that vaccines are being rolled out.
The biggest manufacturing companies in the world belong to several different industries, and are often counted among the biggest companies in the world, regardless of sector or industry. The combined revenue of these companies is more than $2.6 trillion, while the profits exceeded $150 billion as well as nearly $3.7 trillion in assets. This is more than what most countries in the world own. Since manufacturing is a labor intensive business (though automation is on the cards now), these 15 companies also provide employment to more than 4 million people directly and millions more indirectly. 8 of the 15 companies in our list are some of the biggest automobile companies in the world which can often be as big as major cities. So let’s take a look at some global manufacturing giants, with the data having been taken from Fortune Global 500 in 2020, starting with number 15:
15. Cardinal Health (NYSE:CAH)
Total revenue of the company in 2019 (in billions of dollars): 145,534
Total profit of the company in 2019 (in billions of dollars): 1,363
Total assets of the company in 2019 (in billions of dollars): 40,963
Total employees of the company in 2019: 49,500
One of the biggest healthcare companies in the world is Cardinal Health, which manufactures and distributes medical products as well as pharmaceuticals.
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14. SAIC
Total revenue of the company in 2019 (in billions of dollars): 122,071
Total profit of the company in 2019 (in billions of dollars): 3,706
Total assets of the company in 2019 (in billions of dollars): 121,931
Total employees of the company in 2019: 151,785
The largest Chinese car manufacturer is SAIC, and was initially founded in 1955.
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13. Mitsubishi
Total revenue of the company in 2019 (in billions of dollars): 135,940
Total profit of the company in 2019 (in billions of dollars): 4,924
Total assets of the company in 2019 (in billions of dollars): 167,018
Total employees of the company in 2019: 86,098
Mitsubishi is one of the largest conglomerates in the world, and was founded 150 years ago in 1870. It is involved in many industries including mining, telecom, shipbuilding, automotive, construction, chemicals and steel among others.
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12. BMW
Total revenue of the company in 2019 (in billions of dollars): 116,638
Total profit of the company in 2019 (in billions of dollars): 5,501
Total assets of the company in 2019 (in billions of dollars): 255,945
Total employees of the company in 2019: 133,778
BMW is a German luxury automobile company which also produces motorcycles and produces vehicles in many countries including Mexico, the US and the UK.
Pixabay/Public Domain
11. China Railway Engineering Group
Total revenue of the company in 2019 (in billions of dollars): 123,324
Total profit of the company in 2019 (in billions of dollars): 1,535
Total assets of the company in 2019 (in billions of dollars): 152,983
Total employees of the company in 2019: 302,394
China Railway Engineering Group is a state owned company and has operations internationally as well, which include Cambodia and Jordan among others.
Pixabay/Public Domain
10. Huawei
Total revenue of the company in 2019 (in billions of dollars): 124,316
Total profit of the company in 2019 (in billions of dollars): 9,062
Total assets of the company in 2019 (in billions of dollars): 123,270
Total employees of the company in 2019: 194,000
Huawei producers smartphones as well as telecommunications equipment across the world, with products and services in 170 countries.
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9. Ford Motor (NYSE:F)
Total revenue of the company in 2019 (in billions of dollars): 155,900
Total profit of the company in 2019 (in billions of dollars): 47
Total assets of the company in 2019 (in billions of dollars): 258,537
Total employees of the company in 2019: 190,000
The second biggest company in the United States is Ford, which revolutionized the auto industry in the US and has around 90 plants and facilities across the world.
Pixabay/Public Domain
8. General Motors (NYSE:GM)
Total revenue of the company in 2019 (in billions of dollars): 137,237
Total profit of the company in 2019 (in billions of dollars): 6,732
Total assets of the company in 2019 (in billions of dollars): 228,037
Total employees of the company in 2019: 164,000
The biggest automobile company in the United States is General Motors, and at its height, had nearly 50% of the total market share in the US.
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7. Honda (NYSE:HMC)
Total revenue of the company in 2019 (in billions of dollars): 137,332
Total profit of the company in 2019 (in billions of dollars): 4,192
Total assets of the company in 2019 (in billions of dollars): 189,335
Total employees of the company in 2019: 218,674
Honda Motors is the biggest motorcycle company in the world and has been since 1959, with production reaching around 400 million by the end of 2019. It is also the biggest internal combustion company in the entire world and has also veered into aritfical intelligence / robotics.
Pixabay/Public Domain
6. Foxconn
Total revenue of the company in 2019 (in billions of dollars): 172,869
Total profit of the company in 2019 (in billions of dollars): 3,731
Total assets of the company in 2019 (in billions of dollars): 110,790
Total employees of the company in 2019: 757,404
Foxconn, also known as Hon Hai Precision Industry, is a Taiwanese company which is an electronics manufacturer. It is the biggest private employer in the country, and one of the biggest employers in the world.
Please continue to see the 5 biggest manufacturing companies in the world.
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Disclosure: No position. 15 biggest manufacturing companies in the world is originally published at Insider Monkey.
