Politicians,
the media and other people of influence are often guilty of inventing rather
ugly and ponderous key phrases in the search for a successful soundbite. Some
of the worst ones that come to mind include: ’Get More for your Monergy’, ‘The
Big Society’ and ‘Hard Working Families’.
The latest
fad in relation to British business is the phrase ‘Re-shoring’. I don’t know
whether this was dreamt up by the prime minister or some bright spark at UKTI,
but it is another rather clumsy phrase that masks a very important trend taking
place in UK manufacturing industry.
What it
represents is the actions of those manufacturers that had previously outsourced
(another ugly word) a great deal of their production overseas, primarily to
low-cost labour countries such as China, India, Mexico etc. They are now
bringing large parts of it back to the UK. It is significant that, in the last
three years, one in six companies have made this important change.
There are
various reasons for this. Companies are keen to improve the quality of their
components and finished products. They also want to secure their supply chains
and to improve certainty and speed of delivery.
Furthermore,
the phrase ‘Made in Britain’ is once more being perceived as a badge of quality
to be worn with pride. This country has a world-class science and research base
and a highly skilled workforce. Our universities are among the best in the
world and thanks to a re-think on educational priorities, we are now seeing a
return to popularity of courses in the science, engineering and business
oriented disciplines.
Another
significant statistic is that, in the last ten years, our exports to non-EU
countries have grown by 100%. So, as we bring production back home, we are
improving the balance of trade by selling our products to many of the countries
that previously made them for us!
In the
surface finishing industry, many of my colleagues are reporting an upsurge in
the commissioning of new electroplating, e-coating, powder coating and
vibratory finishing plants, as well as an increased demand for other ancillary
machinery. The investments that are being made in the UK can only benefit our
industry, as we have so many skilled people here in this field.
At the same
time, new finishing plants that are being built overseas frequently draw upon
the expertise of British plant designers, builders, chemical engineers and
consultants to achieve the same high standards of process and production that
we enjoy at home. Our industry can genuinely claim to be one of Britain’s major
export success stories.
One of the
few downsides to this whole scenario is our over-inflated energy prices, a
consequence of political meddling in what should be a national resource and the
volatility of global energy markets. At the time of writing this article, this
could all be exacerbated by the unfolding crisis in Ukraine, so let’s pray for
a peaceful solution.
Right now,
I’m off back to the office for a spot of re-shoring. Keep up the good work!
