Is Britain going back to its manufacturing roots? » SMEInsider

Is Britain going back to its manufacturing roots?

70% of companies in England and Wales are looking to “on-shore” manufacturing by 2016, while 50,000 jobs have been created in the automotive industry, according to new research.

Called Fuelling Growth, the report by Lloyds Bank found that nearly half of manufacturers surveyed said they had already brought some operations – a fifth of production, on average – back the UK. Companies who had opted for this route said that better economic conditions in the UK, a desire to support local communities and reductions in costs and lead times had all contributed to their decision.

What’s more, three-quarters of manufactures were confident that they would see significant growth over the next two years, with those surveyed saying that they expected to create 27 jobs apiece over that time.

David Atkinson, Head of Manufacturing, SME, Lloyds Banking Group, said: “Britain remains one of the leading players in automotive manufacturing, with a complex supply chain of high value engineering that is attracting significant inward investment. The sector’s growth in recent years has made the automotive industry the ‘jewel in the crown’ of the nation’s economy, and this looks set to continue with thousands of new jobs predicted to be created.”

He added: “It is particularly encouraging to see the commitment of many firms to bring their manufacturing processes back onshore as a way of helping to support both local communities and the wider economic recovery of the UK.”