In many ways, the case is clear. Nearshoring or onshoring can contribute to risk-resistant supply chains and lead to faster time-to-market, more effective planning cycles, and greater flexibility in response to disruption. Proximate sourcing can enable greater control and more frequent site visits, fewer cultural barriers, and better communication. Reductions in logistics costs and lead times can also bolster the balance sheet by freeing up working capital that is tied up in cash outlays to suppliers and inventory in transit. 

Colliers International releases a new research report on the latest trends for the manufacturing industry in Asia, Europe and the Americas

• 15 listopada 2016

Greater focus on automation and digital technology in manufacturing globally is helping to shift workforce needs from low-cost to highly-skilled. This trend is apparent across Europe, and globally, according to a report released by Colliers International. The report discusses multiple pressures which global manufacturing and supply chains are confronting.

“To remain competitive in a global context and future-proof their manufacturing sector, advanced economies are embracing the Fourth Industrial Revolution and pioneering new forms of smart manufacturing whereby production combines the “Internet of Things” and digital technology to increase productivity, efficiencies and flexibility. Germany for example pursues this objective through its “Industrie 4.0” programme”. Commented Tim Davies, Managing Director, Head of Industrial & Logistics Practise Group for Colliers EMEA.

While this is putting greater emphasis on the quality rather than the quantity of the workforce in advanced economies, low-cost manufacturers remain an important part of the global manufacturing jigsaw. They are seeing their operations shift into less advanced economies, where labour costs are low and supply is more plentiful.

Karel Stransky, Director, EMEA Corporate Solutions: “Europe ultimately needs additional workers to avoid significant labour shortages. EU states in the Organisation for Economic Cooperation and Development (OECD) are anticipating population declines of approximately 10% by 2050, while the EU dependency ratio is expected to double, a measure reflecting the pressure on the productive population. Rural areas will be the most affected due to the continuing urbanisation trend. This begs a question over the sustainability of local labour pools. Going forward, the countries that will emerge as manufacturing winners will be those who continue to create innovative technologies in the most cost-effective manner, combined with competitive, yet affordable, wages.”

CEE has been one of the main beneficiaries of new productive investment in Europe in the last few decades. This has been primarily focused on a group of so-called Tier 1 countries including the Czech Republic, Poland, Slovakia and Hungary. The Czech Republic has one of the highest stocks of manufacturing FDI (Foreign Direct Investment) per capita within CEE. This investment has put local labour markets under pressure.

The Czech unemployment rate has fallen from a post crisis peak of 7.3% in 2010 to 5.1% in 2015 and is expected to fall to just above 4% by the end of 2016, the lowest level in Europe. In Poland, another regional heavyweight, the unemployment rate is predicted to fall to an all-time low of 6.2% by the end of the year.

Meanwhile, gross average manufacturing wages have increased by nearly 50% in the Czech Republic, 57% in Slovakia, 68% in Poland and 73% in Hungary in the space of less than 10 years (2005 to 2014).

These cyclical and structural forces are slowly redrawing the manufacturing landscape across the CEE region as we know it, and are prompting some corporates to consider alternative territories to established manufacturing hot spots.

The report – ”Global Manufacturing Shifts: an EMEA Perspective. Production in the post-BRICs era” cites several significant factors and trends as catalysts for redrawing the manufacturing landscape:

https://focusonbusiness.eu/en/news/colliers-international-releases-a-new-research-report-on-the-latest-trends-for-the-manufacturing-industry-in-asia-europe-and-the-americas/1128

• Rising labour costs and labour shortages in global manufacturing hot spots are redefining the map of global manufacturing, driving growth into the next group of low cost countries such as South Eastern Europe, Turkey and Morocco.
• Labour costs are far from being the only determining factor for locating a site or plant or in product-sourcing decisions. The need to improve speed to market and the growing demand for customised product means proximity to final consumers is increasingly important. As a result, regions/countries close to major consumer blocks that offer a good balance between cost/risk are those best placed to benefit from this trend. These include the previously mentioned countries plus South East Asia and Mexico.
• In line with Industry 4.0, Western European supply chains are set to become increasingly automated, with robot-operated factories the norm. Port operator APM Terminals, for example, recently announced the opening of the world’s first fully-automated container in Rotterdam Port. Amazon has cut its operating expenses by about 20% by using its Kiva robots, and plans to roll out this technology more extensively across Europe and Asia.
• Automation and technology may also enable the return of some traditionally labour intensive productions, from farther afield, as they seek to maximize speed to market. While this will generate new real estate requirements, the overall impact on job markets is likely to be more muted and unevenly felt across skills/qualifications levels, with the low-skilled workforce set to be most impacted.
• In CEE, tier 1 markets like Poland and the Czech Republic have become more expensive and increasingly saturated in their primary manufacturing locations. This is likely to pave the way to greater manufacturing investment, particularly by cost-sensitive industries, into “off-the beaten track” regions within these countries or deeper into South Eastern Europe and the Balkans region. Labour cost will be a key driver, with current infrastructure development across the region helping de-risk investment. EU enlargement on other hand seems to have lost momentum but remains important in the mid-long term.
• Mediterranean countries like Turkey and Morocco are likely to capture some investment thanks to their large, young and educated workforce and their location at the crossroads of Europe and other emerging regions like Africa and the Middle East. Turkey in particular is the Western’ terminal of China’s Silk Road initiative, aimed at strengthening trade between the Far East and Europe and support China’s outward investment.

Formation Entrepreneuriale a l’Américaine en Concept, en Gestion et en Définition Opérationnelle et Productive:

---

English Version: https://triconsultingkyoto.com
Version Française: https://fr.consultingkyoto.com

Some Sweet Taste and Thought about a Country Crossing so Many Challenges Internally and Internationally if not also Regionally while it is the Heart of the African Union and the Most successful in Keeping its Independence during the time when Africa was the target of all occupations and invasions.

Africa Case – Study: Honey in Ethiopia

Here is To Bee Ethiopia with the Maker of Sweet Honey and Wax of the Bee

Ethiopia is also the fourth largest beeswax producer in the world after China, Turkey, and Argentina.

Ethiopia is also the continent’s leading producer and exporter of beeswax and honey. The country has approximately 7 million bee colonies.

Ethiopia is the largest honey producer in Africa, producing around 45,300 tonnes annually. However, the country’s potential annual production is estimated to be 500,000 tonnes of honey and 5,000 tons of beeswax. This gap is due to the country’s traditional production system, which results in low productivity.

Ethiopia has three honey production systems: 

• Traditional: Forest and backyard
• Transitional: Intermediate
• Modern: Frame beehive

Modern beekeeping is mostly practiced in the central highland and southwestern areas of Ethiopia. Popular systems include Zander, Langstroth, and Dadant. 

Beekeeping is a long-standing agricultural practice in Ethiopia. It is a major component in the agricultural economy of developing countries. Beekeeping has been and still plays a significant role in the national economy of the country as well as for the subsistence smallholder farmers.

In 2018, Ethiopia produced 50,000 tons of honey This was produced by more than one million beekeepers, who maintained more than six million bee hives. 

Generally, beekeeping is an old agricultural practice in Ethiopia. About one million households are involved in the honeybee’s business.

Ethiopia’s honey is known for its desirable qualities such as low moisture content and a variety of natural and delicious flavors. 

Some challenges to honey production in Ethiopia include: 

The southwestern part of Ethiopia, has dense natural forests, appropriate environmental conditions, and different species of flora and fauna

Over the past 26 years, the average amount of honey produced per hive in Ethiopia is 8.3 kilograms. Traditional beehives produce between 5 and 8 kilograms of honey per colony per year. Modern hives can produce up to 60 kilograms of honey per hive. 

The amount of honey produced per hive depends on several factors, including: Colony strength, Environmental factors, Bee forage availability, Hive type, Beekeeper management. 

The most common way for beekeepers to make money is by selling honey. A single hive can produce 50–100 pounds of honey per year, which can sell for $5–$20 per pound. Raw honey is in high demand globally. 

Other products from the hive include: Wax, Propolis, Royal jelly. 

Beekeepers can also make money by renting out their bees for pollination services. Some beekeepers earn a full-time income from this alone. To do this, they need a lot of equipment, beehives, and experience. 

Ethiopia Honey in the Global Market

Ethiopia is the largest producer of honey in Africa, accounting for 23.6% of the continent’s total production. However, Ethiopia only accounts for 2.9% of global honey production. This is due to differences in production methods. 

Ethiopia is also the fourth largest producer of beeswax in the world. 

In 2022, the average price of honey exports from Ethiopia was $3,555 per ton. The average price of honey imports into Ethiopia was $2,181 per ton.  The global honey market was valued at $8.58 billion in 2021. It is expected to grow to $12.9 billion by 2030.

The United States is the world’s leading importer of honey. In 2022, the US imported $794 million worth of honey from other countries. 

China is the world’s largest market for honey. In 2021, China produced over 472,000 metric tons of honey, which is almost five times more than the second-largest producer, Turkey. 

The main buyers of Ethiopian honey are: 

Germany, United Kingdom, Sudan, Norway, Saudi Arabia, Yemen. 

The main buyers of Ethiopian beeswax are: Germany, Japan, United States, United Kingdom, Italy. 

Global Honey Market and Producers

The global honey market was valued at $9.3 billion in 2023. It’s expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2032. 

China is the leading country for honey production. In 2021, China produced about 500,000 tons of honey, which is a quarter of the global honey output. 

Here are some other estimates for the global honey market: 

• 2022: $8.9 billion
• 2021: $8.58 billion
• 2020: $8.17 billion
• 2017: Peak production of 1.88 million metric tons

Most of the world’s honey comes from domesticated beehives. The top five honey producers are China, Turkey, Argentina, Ukraine, and the United States. These five countries produce 1.2 million metric tons of honey annually. 

Here are some of the top honey-producing countries: 

China – The world’s largest honey producer. China has many honey bees and a variety of plants.

Iran – Produces about 77,000 tons of honey each year.

Turkiya – Produces 96,344 tons of honey. Turkey’s Black Sea region produces a rare and expensive honey called “Elvish honey”.

New Zealand – The country with the highest dollar value of honey exports in 2021. New Zealand is the sole distributor of Manuka honey.

Honey is a source of vitamins, minerals, calcium, and antioxidants. It’s also used to nourish bee colonies. 

This is not professional financial advice. Consulting a financial advisor about your particular circumstances is best.

For Insights and Business Intelligence on Honey Sector in Ethiopia or in other countries, please send an email of interest to: info@triconsultingkyoto.com