British manufacturers are also starting to move production back home

by:Gewinn     2022-04-23
After the financial crisis, the manufacturing industry in developed countries began to flow back to the mainland, especially the high-end manufacturing industry in the United States. The latest news shows that not only American manufacturers are relocating production lines, but British manufacturers are also making similar moves. According to a survey of nearly 300 companies by manufacturers' organisations, the Engineering Employers' Federation (EEF) and Hanyu International, one in six UK companies have 'returned' their production lines in the past three years. This is a slight increase from one in seven in the 2009 survey. The EEF says this trend will continue, with 6% of companies saying they plan to 'return' their production lines over the next three years. The increase was 'extremely welcomeHowever, this percentage remains low. The UK government is launching a service to help businesses return. Examples of business return include: SYMINGTON'S, a food company in Leeds, UK, relocated its noodle production base from Guangzhou, China back to Yorkshire, and HORNBY, a manufacturer of model train toys, recently relocated production of aircraft components from India back to East Sussex County. It is worth noting that the EFF survey found that the main reason for companies relocating production lines to their homeland was to improve the quality of products and spare parts, which was mentioned by 35% of companies. This is followed by removing uncertainty, improving delivery speed, and hopefully lowering shipping costs. Supply chain disruption risk was cited by 23% of companies. Only 16% of businesses said the loss of labor cost advantage was a significant factor. Wages have been rising in countries such as China, but there is still a huge gap with the West. The hourly labor cost of manufacturing in Western Europe is about 15 times that of China. China remains the main region where companies move production lines out, followed by Eastern Europe. Respondents cited high energy costs and a lack of skills as the main barriers to expanding manufacturing in the UK. The EEF hopes that the UK government's commitment to keep UK energy costs at or below the EU average will keep the flow back. The group also wants to see greater progress in reforming the skills and apprenticeship structure in the UK.
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