UK companies are increasingly looking to reshore manufacturing, textiles, software production and call centre work to the UK instead of outsourcing overseas. This is due to the combination of a strong and stable economy, competitive corporate tax rates, a good regulatory environment, strong legal frameworks and a dynamic labour market.
UKTI has identified 1,500 manufacturing jobs reshored in the UK since 2011 and a MAS survey shows companies citing costs, quality and reducing lead times as the top three reasons for moving production back to the UK.
Reshore UK will provide a matching and location service, access to advice and support and a named individual to help each company. MAS’s role is to help support small and medium sized businesses to be globally competitive and to ensure there is capacity in the UK supply chain to take advantage of the reshoring opportunities. UKTI will use its global networks to attract foreign companies to invest.
By joining up the range of support available, the new service Reshore UK will be accessible for both UK and international firms and will ensure that they get the right support, when they need it most. It sees government working in partnership with industry in line with the Industrial Strategy, giving business the confidence to invest, creating more jobs and growth in the UK.
Prime Minister David Cameron who is speaking at the World Economic Forum in Davos this morning said: “For years UKTI has played a vital role helping our businesses to export and encouraging inward investment. Now, as part of our long-term economic plan, I also want us to help businesses bring back production to Britain. This new service will offer dedicated support for businesses that want to capitalise on the opportunities of reshoring, creating new jobs and ensuring that hard-working people can reap the benefits of globalisation.”
Business Secretary Vince Cable said: “British industry is coming home. Over the last few months I have welcomed many companies who have taken manufacturing, textiles, call centre work or software abroad, bringing jobs back to the UK. This is a sign that diverse, high-quality British manufacturing is on the rise once again.
“It also highlights the ability of British-based business to stand strong in the face of global competition. The partnership between UKTI and MAS will further support British industry so they can continue to succeed. This builds on our long-term partnership with industry in key sectors like aerospace, automotive and oil and gas, which is giving business the confidence to invest in the UK and drive growth.”
