Supply shocks prompt on-shoring

Firms are bringing production back inside the firm after suffering shocks and disruptions to their supply chains, according to a survey released by EEF today. Eighty-two per cent of respondents said that their supply chains were disrupted by recession, with some two fifths seeing a major supplier fail. Therefore, a quarter reported moving to more local supply, and some 40 per cent said they were bringing supply back in-house. Lee Hopley, chief economist at EEF, said that policy was needed to welcome production back in by removing obstacles to investment, and creating “a business environment that pulls in every pound of vital investment.”