According to Barclays’ UK Manufacturing: Supply chain insight research, which surveyed 200 companies, 53% of manufacturers make products that are sold to a UK user or used as parts in UK production.
Mark Lee, head of manufacturing, transport and logistics at Barclays, said: “We note a marked propensity of UK manufacturers to choose suppliers close to home. The results present evidence that the high cost of logistics, reflecting escalating fuel prices, are most likely to play a part in the decisions.”
76% of the companies surveyed said that logistics and transport costs are affecting the choice of where their suppliers are based.
The research also found that only 32% of companies outsource supply chain operations, logistics being the most popular area (selected by 44%), followed by distribution.
“Self-confidence and traditional values of quality appear to be key drivers behind UK manufacturers’ supply chain strategies,” said Lee. Quality was found to be the key driver for the selection of suppliers, followed by price.
For 82% of the manufacturers interviewed, suppliers failing to respond to quality, cost and timeliness requirements represented the main source of concern.