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Demand for UK manufacturers rises at home

Demand for UK manufacturers rises at home

Small and medium-sized manufacturers in the UK are seeing demand for their services rise at home.

According to a survey from the Manufacturing Service Advisory, cost, quality and delivery is encouraging business back into the UK. It found that 26 per cent of respondents named concerns over the cost of offshore production as the main reason why they looked to UK businesses instead. Meanwhile, 20 per cent said that quality had been on the increase within the UK while 18 per cent found lead times were reduced among home companies.

Head of the service Steven Barr said: "There is certainly a growing desire from our companies to take production home, with 15 per cent of firms reporting that they have or are in the process of bringing production back. This marks a major change in approach from five years ago when the Far East and Eastern Europe seemed to be the destinations of choice."

Rising demand among small and medium-sized manufacturers is promising for those looking to gain a career in manufacturing as it can encourage investment and help them raise the money needed to expand their workforces. The cost of labour is still considered to be the greatest barrier to production within the UK.

Positivity about the future of the manufacturing workforce was echoed by business minister Michael Fallon, who viewed it as a help to the UK's economic recovery.

Mr 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."

A survey of 350 businesses by the Confederation of British Industry (CBI) also recently revealed that manufacturing within the UK has been growing at a strong rate.

It found that the size of total order books and the output growth rate over the last three months was at its highest recorded since 1995. The CBI also expects that manufacturing will continue to grow during the last quarter of 2013.

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