Production moving back to the UK

Manufacturers are moving production back to the UK amid concerns about poor quality and higher freight costs, a report has said.

Poor quality and higher freight costs are just two of the reasons Manufacturers are moving production back to the UK.

According to a report by the EEF and accountants BDO, one in seven companies has moved its Manufacturing to the UK from abroad in the past 24 months.

The EEF reports the UK had become increasingly competitive and efficient over the past few years.

The EEF represents thousands of manufacturing companies in the UK.

Dozens of UK firms have outsourced production in the past ten years to countries in Eastern Europe or Asia, where labour costs are considerably lower. The EEF's recent survey of 300 manufacturers showed that firms were now returning production to the UK for a number of reasons including, cost savings failing to meet expectations, a poor quality of goods produced and the turnaround time when looking to get products to market.

Two years ago 43% of companies said the UK was a competitive location for manufacturing, this recent research showed this figure to have now increased to 70%.

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