Re-shoring, the new buzzword that masks a growing trend in UK manufacturing

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!