29700 jobs could be created in the South West if manufacturing jobs were ‘re … – South West Business

Bringing manufacturing jobs back to the UK could boost the South West economy by £1.5 billion and create 29,700 jobs over 10 years.

That’s according to a new report out today from EY, which declares so-called re-shoring industry is a once-in-a-generation opportunity.

Richard Jones, EY’s senior partner in Bristol, said: “Offshoring in the 1980s and 1990s 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 presents the region 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 British shores. The desire to guarantee quality and the imperative to reduce time to market are increasingly important drivers of location decisions.”

Highly skilled industries such as aerospace and defence where the Bristol area is strong are among those the report’s authors feel offer the most scope for re-shoring.

Steve Wilkinson, EY’s UK & Ireland managing partner, said: “Those businesses that do relocate to the UK will predominantly be capital intensive sectors such as aerospace, defence, automotive, petroleum products and clothing, serving the European market.

“They will be businesses where quality and brand are important and consequently the supply of a highly skilled workforce is imperative. When firms do choose to re-shore to the UK they will tend to cluster in regions that best serve their business, in close proximity to key suppliers, infrastructure and an able workforce.”

However, re-shoring will only happen if Government’s offer the right incentives.

Richard added: “While steps have been taken to make the UK more attractive to businesses looking to re-shore such as reducing the headline rate of corporation tax to the joint lowest in the G20, providing competitive reliefs for innovative and high tech industries, and UKTI’s ‘Britain is Great’ campaign, more can be done.

“By supporting those sectors which offer the greatest return from re-shoring in terms of employment and GDP, the UK will have a far more balanced, healthy and robust economy where consumers, manufacturers, service businesses and other sectors are pulling in the same direction.”