Reshoring could create nearly 40,000 jobs in Yorkshire

RESHORING could contribute £1.7bn in GDP and 37,900 jobs to the Yorkshire and Humber economy over the next decade.

Accountancy firm EY said Yorkshire could be among the top UK regions to benefit from the return of manufacturing operations from overseas to Yorkshire.

In a report out today, the professional services firm said the region came second of the 11 UK regions analysed in terms of potential job creation via reshoring, behind only the North West (£2.4bn, 46,200 jobs), and joint fourth with the East Midlands (£1,7bn GDP, 35,100 jobs) by GDP that could be added by reshoring, behind only the North West, the South East (excluding London) (£2.0bn GDP, 35,500 jobs) and the West Midlands (£1.8bn GDP, 35,000 jobs).

Reshoring has the potential to contribute a total of £15.3bn of GDP and more than 315,000 jobs to the wider UK economy, presenting a once-in-a-generation opportunity, according to the report.

Stuart Watson, Yorkshire and Humberside senior partner at EY, said: “These results are hugely encouraging for the Yorkshire region, which clearly has significant potential to attract reshored activity over the coming years. Offshoring in the 80s and 90s saw a dramatic reduction in British manufacturing and a shift to services industries that resulted in a fundamental restructuring of the British economy. While some regions saw rapid growth and wealth creation, others suffered from high rates of unemployment.

“But the economics underpinning this trend appear to be reversing, and present Yorkshire and Humber, and the wider UK with a once-in-a-generation opportunity. While increasing wages in developing countries are eroding their labour cost advantage, there are many more factors driving business to choose our shores. The desire to guarantee quality and the imperative to reduce time to market are increasingly important drivers of location decisions.”