More British companies are bringing production home to the UK. The slowing of China’s economy, labour costs rising by 20 per cent a year, and lead times extending to 120 days are all factors contributing to this. This means the benefits of manufacturing in the UK now outweigh those of manufacturing in ‘cheap China’ – which isn’t quite so cheap anymore.

A previously cost effective workforce and access to shipping routes once enticed a mass of British companies to flock to China for large quantities of cheaply made goods. But these companies are now reversing the trend and starting to think about coming home. China is less competitive now, even though it is still the fifth largest global manufacturer, and according to its commerce minister, the country is facing a severe trade situation as less orders come in from the UK and US. The price of land, taxes and environmental regulations are also rising. Productivity is also increasing, but this means wages have to match this, and attitudes are changing – some workers are now demanding up to a 50 per cent pay increase.

As a result of the above, China’s manufacturing output has been contracting for eight consecutive months due to a decline in domestic demand and the weakest export orders it has experienced since 2009. HSBC reported a fall in manufacturing of 48.1 on the purchasing managers index (PMI) on 20 June, with the economy growing at its slowest pace for three years, at only 8.1 per cent in the first quarter. With salaries costing Chinese manufacturers 16 per cent of their revenue, and pushing overall costs up, now is a good time – if some, or all of your supply chain is currently in China or other markets – to move back home, and exclusively manufacture your product in the UK.

A British seal of approval

At the same time, and partly as a result of this shift, the picture of manufacturing in the UK is starting to look slightly more optimistic. The Confederation of British Industry (CBI) released the results of the latest Industrial Trends Survey, (20 June) which found that 27 per cent of manufacturers expect their output to increase in the coming months, with order books already up 17 per cent in June.

The benefits of making it in Britain

Moving production back to the UK doesn’t have to be a hassle, and even though a new supplier will have to set up the artwork, re-tool and re-proof the product, companies will have tighter controls on day-to-day aspects of business and the manufacture of their product, these include;

1. Development –

A product that is manufactured in the UK can be more closely controlled and reviewed; a high-quality prototype can be supplied at a quick turnaround, leaving plenty of time to make any necessary changes before going into full production.

2. Communication –

There are no language barriers when dealing with suppliers in the UK, so any confusion is cut out, and there is less risk of a product arriving not as specified. There’s also no excuse for poor quality, but if there is a problem, it’s possible to call or visit the manufacturer. The fact that you’re in the same time zone also means that sales and technical representatives are on hand to offer advice during UK business hours.

3. Lead-times –

It can be frustrating when overseas companies push up lead times, which are often three times as long as in the UK. Also, if you have an urgent or last minute order, there’s more possibility of it being fulfilled – as some companies are willing to set up 24 hour production to ensure a deadline is met.

4. Transit –

The other benefit of sourcing product components in the UK is that they don’t have to be imported, so shipping timescales, delays, and rates don’t slow down the overall process or push prices up. Again, if products are needed urgently, it’s easy to arrange delivery to other parts of the country, and courier costs are much cheaper.

5. Relationships –

Re-shoring gives a company the opportunity to build a new and lasting relationship, with a supplier that can be trusted to provide a high quality service and product.

In conclusion, sourcing from within the UK strengthens our economy, creates job stability, and contributes to building the nation’s growth and prosperity. If more companies bring production back home, they’ll be able to supply a better product to market, at a fraction of the time – and we’ll be able to make Britain the workshop of the world again.

Paul Bennett is Managing Director of Fascia Graphics, the market leader for the production of graphic overlays and membrane keypads. For more information visit