Manufacturers move factories back to the UK

Tim Wallace
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SMALL manufacturing firms are now more likely to bring production back to Britain than to move it overseas, as overall costs can be cheaper in the UK, a study from the Manufacturing Advisory Service (MAS) showed today.

The report found 15 per cent of small- and medium-sized enterprises (SMEs) are currently bringing production back to the UK, compared with four per cent who are off-shoring their factories.

Of those who are moving to the UK, 25 per cent said cost was the main reason, 20 per cent cited improving quality and 18 per cent said reduced lead times were behind the decision.

“Buyers have realised there is more to the ‘landing’ price than meets the eye, with delays in logistics and issues around quality adding a whole layer of hidden costs,” said MAS’s Steven Barr.

“It appears that bringing production back is having a really positive impact on the bottom line, with 68 per cent of firms that have reshored in the past 12 months reporting an increase in sales.”

Meanwhile the study found two-thirds of SMEs expect to grow in the months to April, and 39 per cent expect to take on more staff as part of the process.