The updated data from the United Nations on manufacturing output by country clearly shows the USA remains by far the largest manufacturer in the world. UN Data, in billions of current US dollars:

See manufacturing data for more countries.

The USA’s share of the manufacturing output of the countries that manufactured over $200 billion in 2007 (the 12 countries on the top of the chart above) in 1990 was 28%, 1995 28%, 2000 33%, 2005 30%, 2006 28%, 2007 27%. China’s share has grown from 4% in 1990, 1995 7%, 2000 11%, 2005 13%, 2006 15%, 2007 16%.

Total manufacturing output in the USA was up 76% in 2007 from the 1990 level. Japan, the second largest manufacturer in 1990, and third today, has increased output 15% (the lowest of the top 12, France is next lowest at 32%) while China is up an amazing 673% (Korea is next at an increase of 271%).
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Tata Steel, India, has been awarded the 2008 Deming Prize. They were the only organization to receive the prize this year.

Mr. B. Muthuraman, Managing Director, Tata Steel, while expressing satisfaction over this accomplishment said, “No other activity made us think so deeply about our business and relationships than the process of applying for the Deming Prize. Total Quality Management (TQM) is a fundamental way of managing business and every organization can gain from institutionalizing the culture necessary to win this prize.” He dedicated this recognition to the employees of Tata Steel, its customers and business partners who have consistently embraced the culture of continuous improvement and demonstrated a great teamwork leading to several recognitions in the last 20 years since the TQM journey started at the Steel Company in 1988.

India continues to do very well, collecting more Deming Prizes than all other countries combined since 2000. Countries of organizations receiving the Deming Prize since 2000 (prior to that almost all winners were from Japan):

The 2007 Deming Prize for Individuals went to Mr. Masahiro Sakane, Chairman, Komatsu Limited, Japan. Previous recipients include: Kaoru Ishikawa, Genichi Taguchi, Shoichiro Toyoda, Hitoshi Kume and Noriaki Kano.

Related: 2008 the Deming Prize Winners Announced - Tata Steel India wins Deming Application Prize-2008 - Deming Prize 2007 - 2005 Deming Prize - Dr. Deming’s Thoughts on Management

India’s Economic Times has an interview with James Womack, Now is the time for lean management, with an interesting quote:

I have discussed TVS several times in the past; TVS has won several Deming Prizes.

Related: TVS Group Director on India - Manufacturing, Economy… - Deming Prize 2007 - Indian Deming Prize Winner Expanding - Toyota Chairman Comments on India and Thailand - Curious Cat Lean Manufacturing

Toyota is investing $350 million in a second Indian manufacturing plant. The plant is focused on producing vehicles for the local market - as the Toyota Production System suggests that production be close to the market.

Toyota to invest Rs1,400 crore for “strategic” small car in India

Related: Manufacturing Takes off in India - Toyota Chairman Comments on India and Thailand - Top 10 Manufacturing Countries 2006 - Indian companies have received as many awards as companies from all other countries combined since 2000 - Toyota to Build New Plant in India to Make Small Cars - TVS Group Director on India - Manufacturing, Economy

Jules Verne predicted cars would run on air. The Air Car is making that a reality. The car would be powered by compressed air. Certainly seem like an interesting idea. Air car ready for production:

The car is said to have a driving range of 125 miles so by my calculation it would cost about 1.6 cents per mile. A car that gets 31 mpg would use 4 gallons to go 124 miles. At $3 a gallon for gas, the cost is $12 for fuel or about 9.7 cents per mile. I didn’t notice anything about maintenance costs. I don’t see any reason why the Air Car would cost more to maintain than a normal car. Five-seat concept car runs on air

Now does that sound like the Toyota Production System to you? It should. If I were an executive at Toyota I would sure examine this to see if it really is as promising as it looks. And if it is Toyota sure has plenty of cash and the management practice to make a very compelling case for allowing Toyota to produce this globally. The engineers desires closely match what Toyota has learned. Both seek to eliminate the waste of transportation (friction).

Related: Click Fraud = Friction for Google - Manufacturing Takes off in India - Electric Automobiles

Business Week has several good articles on the topic of China’s Economic impact including: Shaking up Trade Theory and The China Price.

In Shaking up Trade Theory Aaron Bernstein explores: “The fact that programming, engineering, and other high-skilled jobs are jumping to places such as China and India seems to conflict head-on with the 200-year-old doctrine of comparative advantage.” Over the last few years the white collar job losses in tech US have seemed to cause quite a bit more concern than the manufacturing and other job losses of the 1980s and 1990s. His article does a good job of exploring this issue within the limits of a short magazine article.

He captures the surprise economist (in the US) see because “Conversely, India, where just a fraction of its 400 million-plus workers have gone to college, should grab the low-skilled work and leave higher-end products to the U.S.” That conflicts with the data that many high skilled jobs are going to India (and elsewhere). The US Economists don’t seem to realize India is producing as many college educated engineers as the US. So India also has hundreds of millions of low skill workers that doesn’t mean they don’t also have plenty of high skilled worked (that speak English, which is, of course a huge benefit that is less true of Chinese high skilled workers).

Ok, I need to do better research but here is one source: “I know that US production of engineers declined from about 80K (in ‘85) to about 65K - but is back up to about 75K in the latest data. For context, however, the production of engineers is over 200,000/yr in each of China and India.” Wm. A. Wulf, President, National Academy of Engineering (United States) in talk entitled: Out-sourcing/Off-shoring of Engineering Jobs. - Update: see USA Under-counting Engineering Graduates
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2004 Deming Prize announcement - JUSE (Union of Japanese Scientists and Engineers)

This year again provided impressive showings by India and Thailand: of the 6 awards 3 went to Indian Companies and 3 went to companies in Thailand. And this is not a fluke, a unit of the TVS group (India) has been awarded in each of the last four years, see, “Deming medal for Lucas TVS and SRF.”

2004 The Deming Prize for Individuals
- Mr. Akira Takahashi, Senior Adviser to the Board, Denso Corporation (Japan)

2004 The Deming Application Prize (alphabetical order)
- CCC Polyolefins Company Limited (Thailand)
- Indo Gulf Fertilisers Limited (India)
- Lucas-TVS Limited (India)
- Siam Mitsui PTA Company Limited (Thailand)
- SRF Limited, Industrial Synthetics Business (India) SRF press release – pdf format
- Thai Ceramic Company Limited (Thailand)

In recent years, Thailand and India have been the home to nearly all awardees: 6 of 7 in 2003, 2 of 2 in 2002 and 3 of 4 in 2001. Prior to this new trend, nearly all awardees were based in Japan, the exceptions being:
- Sundaram-Clayton Limited Brakes Division (India) 1998
- AT & T Power Systems (U.S.A.) 1993
- Philips Taiwan, Ltd. (Taiwan) 1991
- Florida Power and Light (USA) 1989

Find online Deming resources: Curious Cat Deming Connections
Full List of Deming Prize Winners