Lithuania takes 2nd place in Manufacturing Risk Index 2018 report

Lithuania ranks as the second most attractive location for manufacturers in the recently updated Manufacturing Risk Index 2018 report published by Cushman & Wakefield. It is the only European country featured in the Top 5, with other countries being China (1), Malaysia (3), Taiwan (4) and Canada (5).

The report released in 2018 includes three rankings based on the following scenarios, which differ in the way several indices (Conditions, Risk, and Cost) are balanced:

• Baseline (Conditions – 40%, Risk – 20%, Cost – 40%);
• Cost-Sensitive (Conditions – 20%, Risk – 20%, Cost – 60%);
• Condition-Sensitive (Conditions – 60&, Risk – 20%, Cost – 20%).

In the Cost-Sensitive scenario, Lithuania ranks 3rd, whereas in the Condition-Sensitive scenario it takes the 5th position.
The Manufacturing Risk Index examines a range of risk and cost factors, including political and economic risk, and labour cost. Cushman & Wakefield have recently updated and adjusted their model to provide a more comprehensive assessment of the attractiveness of 42 countries for global manufacturing.

The Conditions index factors in such criteria as Talent, Logistics, Business Environment, Time to First Supply and Sustainability. The Risk index covers the following types of risks: Natural Disaster, Economic, Corporate, and Energy. The Cost index takes into account several factors but is mostly dependant on Manufacturing Labour Costs.

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