UK manufacturers ‘reshore’ supply chains after pandemic and Brexit

UK manufacturers ‘reshore’ supply chains after pandemic and Brexit

British manufacturers are bringing back production to the UK in a “reshoring” push to try to address the supply-chain chaos caused by the coronavirus pandemic and Brexit.

Three-quarters of companies have increased the number of their British suppliers in the past two years, according to a survey by Make UK, the manufacturers’ trade group.

Almost half of companies said they intended to further boost their UK supply base in the next two years. Conversely, more than 10 per cent said they planned to reduce reliance on Asian suppliers over the same period.

Make UK said successive economic shocks, including the war in Ukraine, were forcing manufacturers to reverse the decades-long move to offshore supply chains as producers were increasingly facing delays in the arrival of components and materials.

The breakdown in the critical just-in-time supply-chain processes meant UK companies were turning away from sources of lower-cost production in Asia to suppliers closer to home, it said.

Verity Davidge, director of policy at Make UK, said the era of globalisation might have passed its peak “with disruption and volatility for global trade fast becoming normal”. She added: “For many companies this will mean leaving just-in-time behind and embracing ‘just-in-case’.”

Officials in Whitehall are increasingly concerned about the