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Reshoring: will pandemic drive

manufacturers back to the UK?

THE 22 LEADING INDUSTRIAL ASSOCIATIONS
CURRENTLY BEHIND THE RESHORING UK
INITIATIVE HOPE TO SEE MORE EMPHASIS
PUT ON REESTABLISHING PRODUCTION OF
CRITICAL PARTS IN THIS COUNTRY

ith the COVID-19 pandemic skills and resources of the UK
exposing the frailties of supply chains and aids
many of the UK supply manufacturers when consider-
Wchains, underlining in stark ing domestic production for
detail just how reliant many have become new projects or for the
on the overseas supply of critical items, relocation ‘onshore’ of existing
there should be more impetus put on re- work programmes.”
establishing UK production and protect She adds: “Everyone
SME manufacturing. This is the firm view behind the Reshoring UK
of the associations behind the Reshoring platform appreciates the
UK initiative. complexities involved when
“Ever since manufacturers began transferring manufacturing
outsourcing production to more from overseas. The Reshoring
competitively priced overseas economies UK website portal has been
there has been a race to the bottom based created to help re-establish
on price,” states CEO Julia Moore. the capability required to meet within the UK. We know it is a myth that nation in the world contributing 10% of
“However, there is an intrinsic value manufacturers demands and those the UK no longer manufactures anything, the UK Gross Value Added (GVA). The
attached to making things here in the UK, businesses that have used it in this current but it is often repeated and needs to be sector plays a vital role as an employer,
not least being the opportunities to crisis have realised just how much dispelled. In reality, prior to this pandemic with a workforce of around 2.7 million,
innovate. Reshoring UK highlights the capability and competence is available we were the ninth largest manufacturing and an innovator accounting for 70% of all
business Research and Development
Engineering industry sees job (R&D) spend.”
Even before the global threat from
COVID-19 there was a paradigm shift from
OEMs looking at the benefits of reshoring,
numbers plummet by 69.6% as highlighted by the Lloyds Bank report
‘Business in Britain: Manufacturing’. A
sponsor of the Reshoring UK facility,
research from Lloyds Bank showed more
he latest job market data from CV-Library, the UK’s out of work or placed on furlough in April, CV-Library’s data than a third (37%) of firms asked said they
leading independent job board, reveals that job shows that application numbers also dropped significantly last were planning to move manufacturing
vacancies plummeted by 69.6% in the engineering month; down 24.1% in the engineering sector when looking at processes back to the UK that had
Tsector in April, when looking at month-on-month data. month-on-month data and by 24.7% year-on-year. previously been offshored to territories like
The study looks at job market activity throughout April, In addition to these findings, the job board also explored Asia and eastern Europe.
comparing the findings with the previous month and year to the application to job ratio on its site and found that this The prime motive for this, cited by
build an understanding of how the UK job market is fairing increased by 214.7% in the engineering industry in April, 71% of those with these plans, was to
right now. The data shows that engineering job numbers also compared to the previous year. This means there is more improve quality – a telling endorsement of
dropped by a staggering 76.1% year-on-year. competition amongst candidates for the roles that are the high standards that British
Lee Biggins, founder and CEO of CV-Library, comments: available. manufacturers and workers uphold, which
“We’re trying to support UK businesses as much as possible In fact, CV-Library's data shows that there were an average also has extremely positive implications for
right now, but everyone is feeling the financial effects of the of 33.81 applications per engineering role in April 2020, as UK supply chains.
current crisis. Thousands of companies have put a pause on opposed to just 10.74 in April 2019. “With so much value to be gained for
their hiring plans until there’s more certainty in the market and Biggins concludes: “Unfortunately, organisations have had both sides, large manufacturers only need
the pandemic is having an impact on the engineering industry. to make some tough decisions over the past weeks, with ONS to look more closely at what is already
“All we can do now is prepare for the recovery and hope figures revealing that two thirds of businesses have placed staff available to them in this country, in terms
that business confidence picks up over the next few months on furlough. While these professionals might not be actively of innovation, technology transfer across
when lockdown restrictions eventually ease. Unfortunately, looking for work right now, especially at a time when there’s so sectors, and quality. partnership urges the
there’s no light at the end of the tunnel at this stage, especially much uncertainty, we do expect application figures to pick up manufacturing sector to seize this
as we move into the thick of the spring/summer period, which in the coming months and clearly there is already increased opportunity to reconsider its supply
tends to be quieter for hiring anyway.” Despite more Brits being competition for jobs.” base.”
MORE INFORMATION: www.reshoring.uk

10 INDUSTRIAL TECHNOLOGY • May/June 2020