Reshoring gaining pace in the UK but further Government support needed

In Britain, the move towards reshoring has gained further momentum following the introduction of full border checks in the wake of the country’s exit from the EU. 

"The headwinds of Brexit, the pandemic and then the war in Ukraine mean that most businesses who import are looking to reshore," explained Christopher Greenough, chief commercial officer at SDE Technology. 

According to a survey by Make UK, more than a third of UK manufacturers have increased the number of suppliers they use. Further supporting the view that Reshoring is gaining traction, Make UK's research indicates that more than 75% of these companies are increasing their use of UK suppliers.

"The political and economic landscape is volatile, and this is driving questions relating to risks and costs around ‘extended’ and distant supply chains," said Tony Hague, CEO of PP Control and Automation. The company has secured more than £2m of contracts which were previously handled outside the UK within the past two years, Reuters recently reported.  

However, Greenough cautioned that while reshoring "represents a great opportunity for UK firms", it still "needs to be backed up with real support and investment from the UK Government to reduce energy costs and close the skills gap". "Without this, the reshoring decision is a tougher one," he warned.