Manufactures moving bases back to the UK
It is believed that manufactures are moving back bases to the UK from China as the cost benefit diminishes from China.
Experts said that the technical edge in the UK and the diminishing cost advantage in China are convincing manufactures to move back their plans to the UK. Trade body EEF said that about one in six firms brought back manufacturing activities to the UK during the previous three years compared to one in seven firms.
Reports showed that the production bases were brought back mainly from China and also from Eastern European nations. Terry Scuoler, EEF's chief executive indicated that thetrend was gradual as five in six companies have chosen to keep their operations overseas and said that trend is encouraging.
Scuoler said, "While it will always be two-way traffic, the need to be closer to customers, to have ever greater control of quality, and the continued erosion of low labour costs in some competitor countries means that in many cases it makes increasingly sound business sense."
The survey is was co-produced with law firm Squire Sanders and showed a new trend of moving bases back to the UK.