British prime minister David Cameron will give a speech today at the World Economic Forum to encourage more manufacturers to reshore manufacture of products to the UK and Europe.
His presentation to global leaders at the World Economic Forum in Davis, Switzerland will include news of a new advisory service in the UK, specifically to help companies formulate cost and value business cases for reshoring, and to assist them in finding the right business networks to support their decision.
The prime minister will share his intention to bring “more of the benefits of globalisation home” and ensure that “those benefits are felt by hard-working people”.
Commenting on Mr Cameron’s planned speech Terry Scuoler, CEO of EEF said: “Recent evidence that companies are choosing to bring activity back to the UK is really positive and to be encouraged. For companies looking to get the best input from their suppliers and collaborate with customers, the UK has some real strengths.”
However, Mr Scuoler took the opportunity to remind the prime minister that in order to offer global firms a viable home for production in the UK, more work needs to be done to create a favourable economic environment.
“The good work being done in addressing our skills system and, to support innovation for example, must not be undermined by self-inflicted, unilateral action on energy taxes which threatens future investments,” observed Scouler.
This week energy bosses in the UK publicly denounced the effect of green taxes on their costs to business and domestic users.
Evidence of firms reshoring to Britain increased significantly in 2013 with a Manufacturing Advisory Service (MAS) Survey showing growing popularity for the strategy and highlighting key motivations for it.
Perhaps surprisingly, cost reduction, in terms of total cost, played a definitive role.
Examples of companies that have reshored production in recent years span sectors.
Ventilation systems manufacturer Vent Axia, food company Symingtons, luggage maker Trunki, lingerie firm Made in Preston and toy manufacturer Hornby are just a foew examples – Hornby reshored manufacture of some of its Airfix planes to Kent and also subsequently moved the contract for manufacture of paint for the products from a Chinese factory to London-based paint company Rustins.
To see a map highlighting companies which government has recognised as reshoring examples click here.
MAS, alongside UK Trade and Investment will be responsible for administering the new reshoring advisory service announced by Cameron today.
The new body will be called Reshore UK.
Commenting on the opportunities ReshoreUK will open up Steven Barr, head of MAS, said: “Reshoring is a huge opportunity for UK manufacturers and we are delighted to be working in partnership with UKTI to give both domestic and international firms access to this one-stop service.
“Our expert advisors working on the ground will continue to ensure firms offer world class manufacturing performance and have the capacity in place to take advantage of larger companies bringing production home.”