In the early 1970s, I was a fresh-faced, new Ph.D. with big
dreams, empty pockets, a beard and little hair.
Four decades later, I’ve got a company I’m proud of, a
family that I couldn’t live without, the same beard and even less hair. So much
has changed for me over the past 40 years, including the world that I gratefully
work in as a consultant, an engineer and a global entrepreneur.
In the 1980s, I was lecturing throughout China for the Chinese Secretary of
Commerce with series of lectures on warehousing, inventory management and logistics
(before it was even called supply chain). I could not have predicted or even
come close to the world that we see today – the proliferation of global
marketplaces and the emergence of China as a global supply chain hub.
So let’s take a brief look at what has change in the past four
decades.
In 1970…
- There
were roughly 3.7 billion people on earth, and China was the most populous
country in the world.
- Fifty-five
percent of the world’s population lived in four countries/regions: China (22%), India
(15%), the area now known as the European Union (EU) (12%) and the United States
(6%).
- China’s portion of global GDP was just less
than 1%, while the U.S.
had 26.5% and the EU was at 27%.
In 2010…
- The
world’s population was around 6.8 billion.
- The
same four countries/regions still had the largest population, but the
number is now 49%: China
(20%), India (17%), EU
(7%), and U.S.
(5%).
- Global
GDP was three times what it was in 1970, but China’s slice of GDP was
around 7%.
- The
U.S. portion of global GDP remained relatively constant over the past 40
years (around 26.5%), and there has been a relative decline in the share
of world output during this same period by the EU members from 36% to 27%.
Recently, the rate of change has accelerated exponentially.
Just five years ago, China
had only 16 companies on the Fortune Global 500 list and the U.S. had 176.
In 2010, China had 46
companies on the list, and the U.S.
dropped to 139.
Major changes are under way in today’s global market, as China
continues to evolve into a larger competitor in the industry. You can find more facts and trends on how China
is impacting global supply chains found in Tompkins’ latest whitepaper, China
is Changing Supply Chains Around the World: Facts and Trends.
Where do you see China in 10 years? How has your
company responded to global market shifts? I’d like to hear your viewpoints.
Go! Go! Go!
Jim
More Resources
China
Impacts All Global Supply Chains
Tompkins International in Asia
Technomic Asia
The China Ready
Company
Caught Between the Tiger and The Dragon