More and more manufacturing firms are bringing their production lines back home to the UK, a new survey has revealed.
15% of SMEs are either in the process of bringing production back to British shores or have already done so, in comparison to just 4% last year.
Reasons stated for bringing production back home include bringing down costs (26%), improving quality (20%) and reduce lead times (18%). But despite reducing costs associated with production at home, the high cost of domestic labour still remains a barrier for many.
Steven Barr, head of the Manufacturing Advisory Service, said: “There is certainly a growing desire from our companies to take production home”.
“Buyers have realised that there is more to the ‘landing’ price than meets the eye, with delays in logistics and issues around quality adding a whole layer of hidden costs”, he concluded.
Business Minister, Michael Fallon, said: “These findings are another sign that the economy is heading in the right direction and that confidence is returning as we move from rescue to recovery”.
Invoice Finance for Manufacturers
As the UK economy continues to recover, opportunities are now emerging for manufacturing firms to take advantage of renewed business confidence and increasing order books.
Invoice finance solutions such as invoice factoring and invoice discounting can be used by manufacturers to supplement existing cashflow with that bit of extra cash to help fund growth.
SBF currently funds dozens of manufacturing firms that have gone on to bigger and better things with an invoice finance facility by their side.
Why not find out more about our specific solutions for manufacturers, or alternatively fill in the enquiry form on the right and one of our team of experts will get back to you with a no-obligation quote.