The combination of a strong and stable economy, competitive corporate tax rates, a good regulatory environment and a dynamic labour market has led to companies looking to reshore manufacturing, textiles and software production to the UK.
Since 2011, 1,500 manufacturing jobs have been reshored to the UK as companies cite costs, quality and reduced lead times as the top 3 reasons for moving production back to the UK, according to an MAS survey.
Reshore UK is a new 1-stop-shop which will provide a matching and location service, access to advice and support and a named individual to help each company.
MAS aims to support small and medium sized businesses [SMEs] to be globally competitive and to ensure there is capacity in the UK supply chain to take advantage of the reshoring opportunities.
UKTI also plan to use its global networks to attract foreign companies to invest.
Business Secretary Vince Cable said: “The partnership between UKTI and MAS will further support British industry so they can continue to succeed.
“This builds on our long-term partnership with industry in key sectors like aerospace, automotive and oil and gas, which is giving business the confidence to invest in the UK and drive growth”.
Previously UKTI has played a large role in helping UK businesses to export, along with encouraging investment.
Speaking at the World Economic Forum in Davos, David Cameron, Prime Minister said: “This new service will offer dedicated support for businesses that want to capitalise on the opportunities of reshoring, creating new jobs and ensuring that hard-working people can reap the benefits of globalisation”.
By combining the support currently available, the new service will be accessible for both UK and international firms, and will ensure they can access the right support when they need it.
Steven Barr, Head of the MAS, said: “Reshoring is a huge opportunity for UK manufacturers and we are delighted to be working in partnership with UKTI to give both domestic and international firms access to this 1-stop service”.
The UK government has also announced additional support for UK businesses through new additions to the Business Ambassador and Trade Envoy programmes, strengthening the UK’s overseas business networks.
Business Ambassadors act as powerful advocates of the UK abroad, promoting the UK’s excellence, economy, business environment and its reputation as the international trade and inward investment partner of choice.
Trade and Investment Minister Lord Livingston said: “Exports to high-growth markets like China, India and Brazil are at all-time highs and the UK is the number 1 destination for foreign investment in Europe. However there is still more to do to”.
Alan Arthur, Marketing and Communications Executive at the Aluminium Federation (ALFED), commented on the announcment: “UKTI have played a helpful role over recent years in funding various UK manufacturing sectors to explore export markets and MAS have provided a vital manufacturing support service here in the UK.
“We hope that the activities of Reshore UK will be able to feed into the continued growth of our UK Aluminium manufacturing supply chain”.
Source Article from http://www.theinformationdaily.com/2014/01/24/government-encourages-manufacturing-production-back-to-uk
