Reshoring: Companies Bring Production Home From China
“The chief economist of the manufacturers' association EEF, Lee Hopley, claims 'off-shoring' is now "yesterday's model".”
First Published By: The Week With The First Post
A recent reversal in trends, means offshore sourcing could be in decline. As more British businesses are being hit by rising overseas costs and delivery delays, "reshoring" production to the UK could have positive implications not only for individual companies but also for the economy.
Food manufacturer Symington's is moving its Golden Wonder pot noodle factory back to Leeds, Yorkshire, creating 50 jobs in the process. The firm say that it "once cost 30-35 per cent less to make the noodles in China, but wage inflation there and freight costs had pushed up production costs."
"EEF figures show that 40 per cent of manufacturers have brought some of their capacity back to the UK, up from one in seven companies in 2009."
The reshoring phenomenon isn't just confined to the UK. US President Barack Obama highlighted the trend in his State of the Union address, saying: "After shedding jobs for more than 10 years, our manufacturers have added about 500,000 jobs over the past three".
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