The Future of Automotive: Is reshoring the way ahead?
A COMPLEX mix of positive factors is combining to keep manufacturing in the UK, the High Value Manufacturing Catapult has said.
The HVM said the recent bull-run in manufacturing in Britain was partly due to the decision by big companies to stay in Britain rather than move overseas, bucking the trend of previous decades.
It said the effect of retaining production in the UK was arguably more important than the effect of reshoring, where production returns to the UK from abroad.
In recent years many firms operating within the automotive supply chain have successfully implemented reshoring tactics, which has had a dramatic effect on their business.
Recognising a need by the original equipment manufacturers to improve accountability and source goods from a UK-based supply chain, many suppliers have made a conscious effort to bring more of their manufacturing in-house – despite the potentially adverse short-term impact on their bottom line.
Many firms are finding an enlightened attitude from the banks, with more funders willing to invest in the success of firms supplying into what is currently, one of the UK’s boom industries.
HVM Catapult CEO Dick Elsy said: “Reshoring is an important phenomenon that is boosting UK manufacturing.
“Keeping manufacturing in the UK in the first place, however, is even more significant for the growth and success of our economy. Many global companies are not only deciding to keep production here but deliberately want to increase the British component of their end products – such as Jaguar Land Rover for example.
“Smaller companies need to know how to competitively produce their goods in this country, and how to exploit this recent tendency to develop local suppliers.”
All this week, TheBusinessDesk.com has joined forces with Lloyds Bank, MHA Bloomer Heaven and Irwin Mitchell to assess the strength of the automotive supply chain whether it is capable of meeting future demands.
Our latest supplement assesses the current state of the industry, what challenges lie ahead for the automotive sector and whether the next Government will commit to the policies which can help to sustain an industry that has undergone a drastic renaissance from the dark days of 2009 when many of the manufacturers were forced to go cap-in-hand to the Government to ask for help to survive.
To download a copy of the supplement, please click here
