More manufacturers choose to ‘re-shore’

A GROWING number of manufacturers have decided to bring overseas production back to the UK in the last three years.

That’s according to a report produced by the manufacturers’ organisation the EEF with law firm Squire Sanders which found 16.6% have “re-shored”, up from 14.2% in 2009.

‘Backing Britain – a manufacturing base for the future’ also found that the same proportion of companies have turned to a UK supplier for parts and components.
 
The survey claims the trend is set to continue with 6% of companies saying they are planning to re-shore production in the next three years.
 
EEF chief executive, Terry Scuoler, said: “The trend may be gradual but is highly encouraging to see more re-shoring continuing. While it will always be two-way traffic, the need to be closer to customers, to have ever greater control of quality and, the continued erosion of low labour costs in some competitor countries means that in many cases it makes increasingly sound business sense. It is now key that government policy supports the most competitive business environment possible so that we continue to see more high value innovative manufacturers invest in and sell from the UK.”
 
Rob Elvin, a partner in Squire Sanders’ global manufacturing industry group and the Manchester office managing partner, said: “This report highlights the cyclical nature of manufacturing. Whilst moving any manufacturing across borders is a significant decision for management, strikingly the report shows that this is not motivated solely by cost, but often to improve the quality of what is being produced and enhance customer service.
 
“With a long history of manufacturing in the North West, local businesses have established a reputation for making high quality products, particularly in specialist sectors such as aerospace and defence, and re-shoring is testimony to their achievements, once again giving UK manufacturing a competitive edge in a global market .” 

Around a third of companies polled said the main reason for bringing production back to the UK was to improve quality. Just over half said delivery schedules had contributed to the decision and 17% cited cost.  The survey was based on responses from 270 firms in December.