Welcome to the new Independent website. We hope you enjoy it and we value your feedback. Please contact us here.

Business News

Manufacturers bring back production to the UK as overseas production costs escalate


Small and medium sized businesses are bringing back production to the UK as costs are escalating abroad.

A survey from the governments’ Manufacturing Advisory Service revealed “quality, cost and delivery” is bringing production back home.

The group’s National Barometer found more than a quarter of companies surveyed said the cost of offshore production was the principal reason for “re-shoring”.

Despite the move back home, for some businesses the cost of labour in the UK is still the biggest barrier for producing here.

Steven Barr, head of the Service, said: “There is certainly a growing desire from our companies to take production home, with 15 per cent of firms reporting that they have or are in the process of bringing production back. This marks a major change in approach from five years ago when the Far East and Eastern Europe seemed to be the destinations of choice.”

Mr Barr also said there was a surge in the number of firms investing in new technologies. He said: “This is at a two-year high which tells us that manufacturers are not only optimistic about the next six months, but also have one eye on the longer-term picture.”

The Manufacturing Advisory Service surveys 500 manufacturing firms every quarter to produce the National Barometer.