Britain’s Reshoring Boom: Is This The Era Of Localisation?

In response to disruptions caused by the Covid-19 pandemic and Brexit, manufacturers in Britain have turned to reshoring to increase the resilience of their supply-chains. Major manufacturing businesses are now reshoring their operations from areas such as China, Eastern Europe and India, bringing a surge in local-for-local production.

This shift has caused many industry experts to question whether this is the end of decades of globalisation and what this means for the British manufacturing landscape.

When applied successfully, the JIT methodology creates an efficient flow of increased productivity and lowered costs, however outlying factors can throw this into disarray. This meant that unforeseen shortages caused by the pandemic forced manufacturers to step back and assess their supply chain models.

The opposing ‘Just In Case’ (JIC) strategy has been positioned as the new solution for some businesses, which would see companies holding large inventories as a risk prevention method. Previously JIC was commonly utilised in less industrialised countries that needed to factor issues such as:

The effect of major disruptions is now universal which is why more British manufacturers are adopting JIC.

For some businesses however the JIC methodology does not situate well with their strategies and instead of abandoning JIT they are instead evolving the system by combining it with reshoring. As large businesses keep their JIT model but adapt it to their new onshore supply chains others will follow suit as JIT becomes modified.

In a world without the effects of the pandemic and Brexit there are still factors which would have pushed industries towards localising their operations. Businesses are seeking ways to reduce emissions as carbon pricing increases and public conscientiousness grows.

Although sustainability may not be the main agenda for reshoring, it can give you a step towards your long-term responsibilities for the ecosystem. Reducing the distance in supply chain emissions and focusing on the environmental impact of your business can be beneficial stages to take. Here at Clevtec we have implemented our own measures to improve our green-agenda, find out more in our previous news article here.

British manufacturing governing bodies are now calling for governments to help support UK supply chains and put forward plans to improve the resilience of these connections. Multiple surveys have concluded that a great number of UK manufacturers have undergone or are planning to undergo reshoring their operations, and this is predicted to be a continuous trend over the coming years.

The increase in domestic supply chains is providing UK businesses with a chance to assist other local manufacturers and distributors for viable sustainability. Clevtec are a UK-based manufacturer and stockist for industrial fasteners and components. For more information on the services, we provide and the exceptional products we can offer for your business, get in touch with our team here.