Recent global events have highlighted a number of reasons for reshoring manufacturing processes. The Coronavirus pandemic, Brexit and recent trade wars have all highlighted the risks of global supply chains and the need for companies to review them.
Fears of history repeating have already led to manufacturers turning more towards UK-based suppliers in a process known as reshoring. This is defined as the relocation of offshore production capacity back to the home country.
A recent survey of manufacturers by Make UK found that nearly half of them intend to increase their use of UK-based suppliers over the next two years. This is particularly true in industries such as electrical, aerospace and other high-tech sectors.
What are the benefits of reshoring?
There are many reasons for reshoring manufacturing back to the UK. For a start, it allows your company to be a lot more flexible and responsive – so you can easily change your operations as problems arise, while also preempting future issues. Reshoring your supply chain greatly also reduces your level of risk, given that it drastically cuts your exposure in the event that trade is limited or borders are closed.
Another one of our reasons for reshoring is the issue of quality. The fact that items produced overseas are so inexpensive can sometimes mean they are sacrificing quality. Items that are manufactured in the UK are often held to extremely high standards to ensure everything is produced according to the clients’ full specifications. Even if an issue does arise, it is a lot easier to rectify if your supplier is in the same country.
Shorter supply chains are another one of the reasons for reshoring. They not only mean you can take delivery of your items faster, but also send them on to your clients more quickly. In addition, you can benefit from faster communication, given the fact your suppliers will also speak the same language. This is especially important in the light of Brexit, which has caused huge delays in importing and exporting goods.
The final example of reasons for reshoring your manufacturing projects is the increasing level of public support for Brand Britain. Global events such as Brexit and the Coronavirus pandemic have generated a real interest in helping local companies that are trying to recover from a really tough 2020, and a huge sense of pride in the quality of work that is produced in the UK. Keeping production in the UK would therefore be a good PR move and also attract people who are concerned about the environmental and ethical benefits of local production.
Is this something to consider now?
While reshoring has quietly been a topic that has been on the agenda for many businesses, the impact of Brexit and the Coronavirus pandemic has really pushed it to the fore. With companies now feeling vulnerable after their supply chains ground to a halt, now really is the time to consider moving your production processes back to the UK.
For more information on how EGL Vaughan can help you just do that, simply contact a member of our team and we’ll talk you through the entire process.