Made in Britain quality is drawing manufacturing back to UK – Western Morning News

British manufacturers are continuing to re-shore production from factories overseas to UK plants, according to a major report.

Findings released by manufacturers’ organisation EEF and global law firm Squire Sanders reveal that one in six companies have re-shored production back to the UK in the last three years – compared to one in seven in 2009.

The report, Backing Britain – a manufacturing base for the future, also says the local supply chain is also benefiting from this trend with one in six companies turning to a UK supplier for parts and components.

The survey reveals the trend is set to continue with 6% of companies saying they are planning to re-shore their production in the next three years.

Half of companies manufacturing in the UK see quality as their main source of competitive advantage, followed by customer service and on-time delivery. Eighty four percent of companies regard the UK’s reputation for quality as an advantage to being based here, with the main reason for re-shoring production to improve the quality of products and components.

By contrast, only 17% of companies are seeking to compete with overseas-made product on cost.

EEF chief executive, Terry Scuoler, said: “The trend may be gradual, but is highly encouraging to see more re-shoring continuing.

“While it will always be two-way traffic, the need to be closer to customers, to have ever greater control of quality and, the continued erosion of low labour costs in some competitor countries means that in many cases it makes increasingly sound business sense.

“It is now key that government policy supports the most competitive business environment possible so that we continue to see more high value innovative manufacturers invest in and sell from the UK.”

Cipriano Beredo, partner and global leader of Squire Sanders’ manufacturing industry group, added: “Companies in both the UK and the US that have previously off-shored low cost production may no longer be reaping the same benefits.

“While moving any manufacturing across borders is a significant decision for management, the report shows that this is not motivated solely by cost, but often to improve the quality of what is being produced and enhance customer service.”