UK manufacturing firms “reshoring”

The MAS report found that more than a quarter of respondents stated concerns over the cost of offshore production as the principal reason for reshoring manufacturing processes.

The report also found that concerns over quality and slower lead times were key factors in moving manufacturing back to the UK.

Head of MAS Steven Barr said: “There is certainly a growing desire from our companies to take production home, with 15% of firms reporting that they have or are in the process of bringing production back. This is compared to just 4% that have offshored in the last year.”

There is certainly a growing desire from our companies to take production home

Head of MAS Steven Barr

Barr stated that a “change in approach” from 5 years ago has led firms to move away from destinations on the Far East or Eastern Europe.

“It appears that bringing production back is having a really positive impact on the bottom line, with 68% of firms that have reshored in the past twelve months reporting an increase in sales,” Barr said.

In addition to the latest sales figures, Barr also noted that more firms have been investing in new technologies over the last 2 years.

However, he stated that there had been a slight decrease in recruitment – possibly reflecting the fact that “many firms chose to retain skills during the recession and still feel they have enough capacity to cope with their anticipated expansion”.

And although there are still some staffing issues, over 65% of the 500 firms questioned are expecting to see growth by April 2014 with 39% of those planning to take on new employees.