Policy paper

Businesses are coming back

Updated 6 June 2014

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

© Crown copyright 2014

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This publication is available at https://www.gov.uk/government/publications/businesses-are-coming-back/businesses-are-coming-back

1. What is reshoring?

Reshoring is when UK business operations based overseas return to the UK. It can be any kind of business operation, but the 3 main areas to return are:

  • manufacturing production - often because of the quality and UK-led innovation
  • logistics and contact centres – this is usually due to customer demand and involve higher numbers of jobs
  • global HQs - usually due to business environment considerations

2. What’s happened so far?

A survey of SMEs by the Manufacturing Advisory Service found that 11% of respondents had brought back some production to the UK within the past 12 months, compared with 5% that had offshored production.

UKTI have identified 1,500 manufacturing jobs reshored since 2011. This may not be particularly high but evidence suggests an emerging global trend which could potentially bring far more. Ernst and Young recently suggested that millions of jobs could be available for reshoring globally.

See a map of UK companies that have brought back business operations already.

3. What are the drivers behind it?

Manufacturing Advisory Service (MAS) have ranked in order 4 key factors that have prompted companies to move production:

  1. To improve quality.
  2. To shorten lead times.
  3. To improve delivery performance and strengthen the supply chain.
  4. Reduce labour costs.

Listen to Vent-Axia CEO Ronnie George talk about why bringing jobs back to the UK is good for business.

4. What’s the future?

Businesses will choose to base themselves in the UK if we create the right policy and regulatory environment. That’s why this government is working with the business community to do just that.

We are creating a strong and stable economy through competitive corporate tax rates, a good regulatory environment, strong legal frameworks and a dynamic labour market.

Our Industrial Strategy, and the commitment it demonstrates to a long term partnership between government and business, is providing confidence for investment and growth, particularly in manufacturing.

Listen to Joe Greenwell of UKTI explain why it’s a vital part of our long-term plan for the economy.

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