Made in Britain: Vince Cable to offer more cash to firms ‘reshoring’ production

 

Business Secretary Vince Cable will give more backing to efforts to “rebuild British manufacturing prowess” this week by providing millions more in funding to help firms to bring back production from overseas.

Mr Cable’s announcement to the EEF manufacturers’ organisation tomorrow comes as the industry body publishes evidence that more manufacturers are now “reshoring” production to the UK as the advantage of low-cost centres like China diminishes.

Prime Minister David Cameron launched a campaign on the issue at the World Economic Forum in Davos with a new one-stop shop – Reshore UK – established between UK Trade & Investment and the Manufacturing Advisory Service (MAS) to help firms bring production back home. UKTI has identified 1,500 manufacturing jobs reshored since 2011. A recent MAS survey shows companies citing costs, quality and reducing lead times as the top three reasons for moving production back.

Mr Cable is set to unveil nine more winners of £53m in grants from the Government’s Advanced Manufacturing Supply Chain Initiative (AMSCI) – a £245m fund designed to help companies strengthen UK supply chains – creating a potential 1,400 jobs.

He will say: “We are now seeing a number of encouraging signs of production returning to the UK. The Government will continue to encourage the trend, creating the climate needed for business, domestic and international, to manufacture here. The supply chain funding we are providing is helping to rebuild British manufacturing prowess which we will exploit to bring more work to these shores.”

The EEF’s report, “Backing Britain”, finds concerns over the quality of goods manufactured overseas, the need to speed up delivery times, and rising foreign wage bills has prompted one in six firms to bring all or part of their production to domestic suppliers over the past three years.

The findings come weeks after luxury car maker Aston Martin was forced to recall thousands of cars after discovering that a Chinese subcontractor was using counterfeit plastic to manufacture accelerator pedals. The pedals are now being replaced by a UK-based supplier.

Although the bulk of the 271 firms surveyed have maintained overseas production, more firms intend to reshore, the EEF said. China is the most popular country to move production back from, followed by Eastern Europe, it found.

EEF chief executive Terry Scuoler said: “The trend may be gradual, but it’s highly encouraging to see more reshoring 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.”

More than half of respondents – 56 per cent – said the schedules from overseas suppliers were less suited to the shorter delivery times now demanded by customers. It found 40 per cent of companies saw rising turnover as a result of moving production back to the UK whilst profits and employment have increased for 60 per cent.

But the organisation is pushing for the Government to keep UK energy costs at or below the EU average and encourage skilled workers. Mr Scuoler added: “It is now key that government policy supports the most competitive business environment possible.”

Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

Laughter, but no tears, as Letterman takes his bow after 33 years

Veteran talkshow host steps down to plaudits from four presidents
Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

Hozier's 'blasphemous' song takes Novello award

Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

Join the tequila gold rush

The spirit has gone from a cheap shot to a multi-billion pound product
12 best statement wallpapers

12 best statement wallpapers

Make an impact and transform a room with a conversation-starting pattern
Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

Paul Scholes column

Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?