A survey of 150 companies showed that two out of five had seen a major supplier fail
Manufacturers are increasingly using local firms because of a rise in disruptions to supply chains caused by the recession and natural disasters, according to a study.
A survey of 150 companies by the EEF manufacturers’ organisation showed that two out of five had seen a major supplier fail.
Two out of five had brought production back in-house, while a quarter had increased their use of local suppliers.
EEF chief economist, Lee Hopley, said: “Supply chains have become increasingly globalised for manufacturers. This brings a range of benefits but there are risks attached when things go wrong.
“In recent years manufacturers have been hit by a host of unforeseen events, which has seriously tested their supply chain monitoring and business continuity planning.”
She added: “This can also create opportunities to re-shore production and rebuild key manufacturing, with companies bringing some production in-house and using local supply chains.
“We need to capitalise on this opportunity by removing obstacles for manufacturers looking to expand capacity or diversify into new areas, and by creating a business environment that pulls in every pound of vital investment to our economy.”
Source Article from http://money.uk.msn.com/articles.aspx?cp-documentid=250893220
